Do we need the banks?

http://www.lloydsbankinggroup.com/media/pdfs/halifax/2011/060811first_time_buyers_highest_since_2003.pdf

Halifax, the great big bank, has released a report stating that houses are more affordable now than they were in 2003.  Well, at least in some areas – London is definitely not included.  The report is informative and tries to make promises about getting first time buyers back on the market.  It is a good read, if unhelpful really in the exact details of how they hope to achieve their promises.

The question is this, why do we need to be so dependent on the banks to sell or buy property?  In most ways, the problems we are all experiencing are a result of their over-selling of finance pushing the prices up so high as every Tom, Dick and Harry with no money could afford a property.  This resulted in a great demand for property which caused the prices to rise so high which would have been fine but suddenly, people were unable to pay back these great big sums resulting in a lot of defaults which then led the very same banks to withold the finance.  So now, people are finding it incredibly difficult to sell their homes and also the supply of property is high but there is no demand, so the prices are falling, falling, falling.  This unfortunately leaves some homeowners in a bit of a mess.  However, as I have said in the past, this is only a problem if you have to sell for whatever reason.  I know this is a very simplistic view but hey, it sums it up nicely.

Back to my question, do we really need the banks?  NO we do not.  There are many ways to buy property that do not depend on banks.  Want-to-be sellers, I exhort you to do your research and you will see that selling your home is not as hard as you might think.  If you are still uncertain about how to do this, then definitely get in touch with me today.  As I continually say —

There is a buyer for every property in the UK

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