The current credit crisis in Britain is having an increasing effect on more and more of the British population. What started out as problems in the financial industry has now led to hundreds of people losing their jobs in different sectors of work. The building and property development market are now hugely affected with big job losses and cutbacks in the construction industry. Builder's are having to leave unfinished housing developments as there are no funds to finish the projects due to a slump in the mortgage market.
More and more of the population are turning to debt management companies and the consumer credit counselling service for help and advice and it is becoming part of daily life to take out IVA's.
Mortgage lenders were last year forced to severly tighten up borrowing making it more difficult to be able to purchase a mortgage. Hundred percent mortgages are now becoming a thing of the past as now most lenders require at least ten percent deposit to obtain a mortgage.
This has of course now caused a slump in the housing and mortgage market causing building projects and property developments to hit a standstill. Some big housing companies have had to make cut backs on staff and builders are also being affected as the developments cannot be completed.
What was once a first time buyers market is now impossible for them to obtain a mortgage without first getting into debt to provide a deposit. Some young couples have taken alternative measures and it now becoming increasingly popular to purchase wooden cabins for around twenty thousand plus and place them on land belonging to their parents.
Rapidly rising petrol prices are also having a major effect on motorists and public transport. Britain has seen seen petrol rise by over fifteen percent in less than a year. It is reported that motorists have abandoned higher paid jobs in favour of work closer to home as the prices have rocketed.
Fuel prices are also rapidly rising the price of gas and electric is far higher than the average household can afford, in particular pensioners have been hit the worst some even too scared to use central heating.
Flights abroad have soared in price with huge tax and fuel costs causing a drop in the tourism market compared to recent years. Families are finding it increasingly difficult to make their usual summer breaks abroad and are resorting to making do with holidaying in the UK.
This is going to have a knock on effect on the tourism industry abroad and recently ABTA confirmed there has been a twenty percent rise in holiday destinations such as Turkey and Spain which are slightly cheaper to travel to.
British families are finding it more affordable to sell their homes in Britain in favour of emigrating abroad to countries such as Turkey, Greece and Spain and who can blame them especailly with the increasing scare of the current knife culture. 21/07/08
