Foreclosure Crisis Hits The U.K

The UK’s Ministry of Justice made an alarming statement on the repossession claims in Britain. According to the statement the U.K home repossession claims by lenders increased 16 percent from a year ago and is the highest since 1990s.

Just as in the US. home prices have dropped across the country, except in London and the Bank of England suggests that the problem in Britain if not solved will be far worse than the current US real estate crisis. The Bank of England explained that Britain´s housing boom features a higher median sales price per median income than the U.S.

England policy makers are trying to find ways to prevent a housing market crash, and banks are cutting interest rates. At least in Britain they seem to have acknowledged the problem at the beginning and Britain is already doing something to prevent the crisis. Totally different from the US crisis. The white house and congress in the US should stop arguing and find a solution to the crisis, the same way Britain is doing.