Credit issues 'could deepen'

Posted: 10 Feb 2009 08:30:08 GMT

The majority of businesses in the UK believe that credit availability is likely to become worse in the next three months, research from the Confederation of British Industry (CBI) has said.

Research published yesterday (February 9th) shows that 63 per cent of businesses have already suffered problems acquiring credit in the past three months, while 59 per cent claim that such issues will worsen during the next 90 days.

Richard Lambert, CBI director general, said: "We have urged the government to move as quickly as possible to set out when the various support packages to tackle the credit crunch will come into effect, and to implement them quickly.

"Day by day, constrained credit is damaging our economy. A lack of clarity creates a 'fear the worst' mentality and could be costing people their jobs."

With such low confidence in the market it is unlikely that housing transaction rates will rise soon, meaning selling a house will remain difficult for the time being.

Homeowners in need of a sale, however, could sell their home online, as this could save buyers money and so lead to a quicker sale.



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