With the drop in house prices and the tightening of credit, there are going to be quite a few winners as well though, first time buyers will have a greater chance of getting on the property ladder, but not spend a fortune they cannot afford furnishing it with all brand new designer furniture (whats wrong with a second hane sofa for the first couple of years), those that have had their first home for 10 years or so will have the chance to upgrade (starter homes wont drop in price as much as bigger houses).
the biggest losers will be those that have taken out multiple mortgages to lett (and lett others pay their mortgage), as with falling property values, rent will also drop (law of supply and demand).
Those that have bought their first home recently will still have to pay the same amount on their single mortgage, and may see the value of their house fall in the short term, but as long as they havent overstretched themselves in other loans they still have a house to live in and as long as they can sit tight, the value of their property will increase again in 3 or 5 years.
We may have to live on Jam Butties for a year or two, but after so much steak over the last 10 years or so, at least it might help tackle obesity.
