U.K. Housing Update

Press reports came out today that emphasize the demise of the U.K. housing market. The cost of homes dived 0.8% from October. Banks have cut back on loans with the volume dropping significantly from September. The Bank of England now views the banking crisis as the top concern according to a statement from Governor Mervyn King while offering emergency funds to impacted institutions today.

U.K. Home Prices Drop Most Since 1995, Loans Decline
http://www.bloomberg.com/apps/news?pid=20601087&sid=a41rAenmuzDU&refer=worldwide
"There are clearer signs that the slowdown in the housing market is gathering pace,'' central bank policy maker Rachel Lomax said on Nov. 22."

King Says Market Rate Increase Caused by Bank Capital Concern
http://www.bloomberg.com/apps/news?pid=20601087&sid=a6zhCIZAiVXk&refer=worldwide

See the earlier U.K. Housing post:
http://hingefire.blogspot.com/2007/11/international-housing-home-prices-drop.html