How the credit crunch will hit property

The number of personal bankruptcies is at record levels in the UK - and many of those have gone bankrupt simply by spending too much, say Andrew Selsby and John Robson of RH Asset Management. But things are set to get much worse as lending criteria are tightened by both lenders and central banks - and that's very bad news for property markets on both sides of the Atlantic.

There was a fascinating news item this week.

Bankrupts and remember at present, personal bankruptcies in the UK are at record levels are victims not of life-changing events such as divorce, surprise tax bills or business failure, but instead of having taken on too much credit. They spent too much money on things they mostly didn't need with money too easily borrowed.

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