17
Mar
'Rates and crunch to blame' for slowdown
Both the credit crunch and higher interest rates can be cited as
reasons for house price slowdown in Europe, the Association of
International Property Professionals has said.
Chief executive at the body Paul Owen claimed that it is "hard to
separate" the two factors when attempting to analyse the current
market.
While the Royal Institution of Chartered Surveyors (Rics) did put a
divide between these entities, Mr Owen argued that they are "one
and the same" as the rises were reactionary after the crunch.
Furthermore, there is an element of caution on behalf of consumers
in many different sectors, he claimed.
He commented: "At the moment everyone is wondering what happens
next and so tend not to make big purchases. Purchasing white goods
is down in the UK, purchasing cars is down."
It is also harder for people to get credit, he remarked, as lenders
are more suspicious about their clients.
Growth in the European markets slowed last year, Rics contended in
its European Housing Review 2008.