Is the UK Government doing Enough to improve the Housing Market?

It is clear that the UK is in a recession we are in no doubt of that and one of the worst hit areas has been the housing market. The government have introduced a lot of ideas but are they doing enough to help? In this article I will discuss what the government has done and from there you can judge for yourself. I think no matter what the Government does it won’t make everyone happy and sometimes hard decisions have to be made.

The big Bank bailout: The government decided to bail the banks out that where in debt and offer loans to struggling banks and in some cases even bought the bank to save them going under. I think we would have been in a worse state if this had not happened. If you want my tip put your money in Northern Rock.

Interest Rate: Although the Government was not directly responsible for the low interest rates we have at the moment, as the Bank of England sets the interest rates. I’m sure the Government had a hand in it. This may good news for people with mortgages however not so good if you have savings.

Recently the government has started to offer insurance to the banks when people’s houses get repossessed. This is to try and encourage banks to give out more mortgages and reduce the risk to the banks. I’m sure this will not please everyone as the government plans to use the tax payer’s money to fund this.

It all comes down to the banks and they are mostly to blame for the recession as they made bad investment decisions which lost them billions of pounds. They were offering such large bonuses to get the business in, they never though whether they were good investment or not. What also brought further injury were the American banks giving loans to people with bad credit.

Renting can be a good short term solution to your housing problems and to find houses to rent in Newcastle even if your looking for property to rent in Glasgow check out these links.

This situation will not improve until the banks have the confidence to start lending to each other again and the government has implemented many initiatives to create the confidence needed for this to happen. Although some might disagree as this may lead to the tax payer having to fit a huge bill. As I said at the start I will leave you to decide if they have done enough.

Author

Jack Mack

Jack's Website: poker rules