Mortgage slump set to get much worse

Just one year ago the housing market was in such a good position, back then I decided to put my house on the market. That same night my estate agent had managed to line up three potential buyers, I had an offer on the first night, but I refused it as it was too low.

Well just two days later I had yet another offer, again I refused as was again too low. Then the agent came back to me and said that she was offering me the asking price, so in just six months I had made £21,000 profit.

Well that year seems like a long time ago; now look at the market, for sale signs just seems to be staying up for what seems like an age. After speaking to many estate agents, they have been saying that the amount of property on their books are getting less and what they do have, are getting much harder to sell.

The worry is many had hoped that the Bank of England would reduce the base rate. If they had done this then we would see mortgage rates go down, and that might have been enough to start getting ourselves out of this mortgage slump.

However; the Bank of England also had inflation to think about, I would not like to make that kind of decision. Many experts believe that this mortgage slump will be around for at least 18-months.

What are your thoughts on this?