Friday, 1 August 2008

Credit Crunch Caltongate

With almost daily headlines like the following,
what will become of Caltongate ?

Negative equity threat to 1.7 million properties

"there will be some, especially buy-to-let investors who have purchased inner-city "regeneration" flats, who will be very badly burnt, losing perhaps half of their stake to negative equity in the worst cases. "
The Independent 31st July 08

Insolvencies at 'all-time high'

Business liquidations
Meanwhile, figures also showed that the number of Scottish businesses falling into liquidation rose by almost 30% in the second quarter of 2008.

In Scotland, the number of businesses going into liquidation topped 132 between April to June, compared to 102 between January and March this year.

According to Blair Nimmo, head of restructuring for KPMG in Scotland, "there can be little doubt that the credit crunch is now really beginning to bite".

The worst failure rates in Scottish business came from the property, construction and real estate markets, which saw 60 businesses go under, while hospitality saw 12 and retail saw 11.
BBC News 1st August 08