National Homebuyers: 'Northern Rock is nationalised'
Many homeowners may seek a fast property sale after the beleaguered Northern Rock bank was brought into public ownership.
[UKPRwire, Wed Feb 27 2008] Following the run on the bank last year after it turned to the Bank of England for a loan, the future of Northern Rock has been uncertain.
Two private bids were turned down after the government pledged to guarantee all of the bank's loans and yesterday (February 17th) the chancellor, Alistair Darling announced the banks nationalisation.
It is a clear sign of just how bad the situation has become and many homeowners will seek a fast property sale before things get worse.
In a resounding attack on Mr Darling's handling of the crisis, Conservative shadow chancellor George Osborne accused him of taking Britain "back to the 1970s".
"This is the day when Labour's reputation for economic competence died. Gordon Brown has dithered his way to the disaster of nationalisation," said Mr Osborne.
"Now the taxpayer will bear the full risk of lending £100 billion of mortgages in an uncertain housing market."
Julian King of National Homebuyers adds, "The homeowner will be hit as banks are increasingly cautious over their lending.
"Fewer buyers will make it to the market, as the available deals are less attractive. As such fewer buyers means it will not only take longer for the average home to find an available buyer, but the price will have to reduce accordingly.
"Homeowners needing a quick sale need to look at options other than the open market route".
Mr King is a director of National Homebuyers, the UK's largest quick sale property firm. He is also a founder member of APBA [Approved Property Buyers Association] which is calling for regulation in the quick sale and Sell and Rent Back industries.