GfK NOP's latest consumer confidence index revealed a drop of five points with regard to the country's outlook on the current monetary climate to stand at -24. Such a figure is the lowest recorded since November 1992. Furthermore the current overall level of economic optimism was shown to be down by 18 points from the same period this time last year, with decreases noted across all five of the firm's measures which make up the index.
GfK NOP's index tracking the nation's thoughts about the state of their finances was shown to have fallen by four points to stand at -8 - the lowest level recorded for more than 11 years. In addition, consumer predictions about their personal finance situation over the next 12 months have fallen by four points to stand at zero. Meanwhile, the index judging whether consumers think it is a good time to make major purchases dropped by three points to stand at -24. Such a figure is the lowest recorded since November 1990 and represents a fall of 30 points from last year.
Furthermore, the index charting the public's thoughts on the general economic state of Britain over the past year has dropped to -53, with predictions about how it will fare during the next12 months falling six points to stand at -38.
With consumers having such major financial concerns, it may be the case that significant numbers of Britons are struggling to manage the various demands on their spending. Such areas could well include utility bills, loan and mortgage repayments, transport costs and credit cards.
Commenting on the research, Rachael Joy, a member of GfK NOP's consumer confidence team, said: "Consumer confidence is at its lowest since level since November 1992. This month's drop has been mainly driven by dropping confidence in the general economy over the last 12 months. With the news dominated by stories of recession, the credit crunch, housing market falls and future petrol and food price increases, it will take more than a quarter point reduction in interest rates to alleviate the current gloomy mood of the UK consumer."
However Britons are not entirely negative when it comes to thoughts about how they will manage their money. In fact, many appear to be taking steps to prepare for later life, as the firm's savings index - which judges whether people think that now is a good time to set cash aside for the future - increased. Up by three points from last month's figures to stand at +28, the index is now at the same level as it was in April 2007.
Consumers who have grave concerns about their ability to manage their finances as 2008 progresses might wish to consider taking out a consolidation loan. In selecting this type of loan, borrowers could find that they are able to allay various monetary fears and merge constraints on their spending into affordable monthly repayments. A debt consolidation loan might be of particular assistance to the former young urban professionals of the 1980s. Research carried out by LV= indicated that 45 per cent of the yuppies of two decades ago - who are now in their late 40s and early 50s - claim to be struggling to live within their means.
The association states that during the month of April, there was a stable performance in terms of the number of sales, viewings and and the average house sale price. According to the NAEA, the average number of viewings before a house was purchased was said to stand at 14. It asserts that while this is indicative of consumers being cautious about which property they invest in, the figure stands just two viewings higher than results from 2007.
For those who have found the property of their dreams and are seeking to raise funds for a deposit, applying for a personal loan could be useful in securing the necessary finance to make an offer. However, figures from the group indicates that there is a minor drop in the number of people who are looking to purchase a property. Looking at the average number of buyers on its members' books, the NAEA notes that while in March there were 249, in April that figure dropped to 237. It attributes this fall in part to difficult market conditions as a result of the credit crunch and a reduced number of mortgage approvals.
The National Association of Estate Agents asserts that while this has likely dented consumer confidence, there are indications that market conditions will get better in the coming months. Although some analysts have predicted a sharp decline in house prices, the association insists that such a drop is unlikely because other strengthening factors such as low unemployment, high interest rates and sustained spending are still prevalent, which the group suggests will buoy the property market.
Chris Brown, president of the NAEA, commented: "Many, especially first-time buyers, will be feeling the results of the credit crunch and tighter lending, leading to them being unable to move onto the ladder or up the chain. Some agents are also finding it difficult to stop sales falling through as people get 'cold feet' or fail to secure mortgages but we must remember that this happens in the best of markets. However, what people need to remember is that the market is stable and we are not seeing massive price drops. There are still strong economic factors at play, such as high employment and low interest rates and sales are still taking place."
The statistics also showed that sales in the market remain stable despite tightened conditions, with each NAEA member selling an average of seven homes during the course of April. The association insists that this figure has not changed much since January this year.
For those who are keen to enter the property market but have experienced difficulty raising the cash to put an initial payment down, taking out a secured loan may prove an effective course of action. A cheap secured loan may also be of use to those people who were recently revealed to be struggling to meet mortgage payments. The Royal Institution of Chartered Surveyors has suggested that a growing number of people will be at risk of repossessions in the coming months.
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