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The UK's current economic problems are causing pain in all walks of life. Whether it's first time buyers struggling to secure a mortgage or shop owners seeing sales fall, few in Dorchester appear to be insulated from the effects of an economy which appears to be heading towards recession.Ìý Are things that bad? We spoke to several key players in the town for their view on the credit crunch.ÌýÌý

The estate agent

The housing market is often used as an indicator as to how the economy is faring. Properties in Dorchester are remaining on the books for months and some have been taken off and put up for rental instead.

Dorchester estate agent Stephen Froy

Local estate agent Stephen Froy believes the market in Dorset has been directly affected by events in the City and on Wall Street. He said, "The market has weakened considerably... Sourcing finance for first time buyers and investors is very difficult which means everyone in the middle is getting stuck."

As for the immediate future, he's not optimistic; "I see signs of things getting worse. The effects of rising unemployment and people no longer building will start to come through in the next 6-12 months. I don't see signs of a recovery till 2010."ÌýÌýÌýÌý

The shop owner

Dorchester's South Street may seem no quieter than in the boom times but local traders are noticing that consumers aren't spending quite as much. People are still buying the basics but shops selling luxury goods or non-essentials are feeling the pinch.

Teresa Woolley of Gould's department store admitted that customers are spending less and that sales have grown progressively worse since August. She said, "Consumers are sticking to the essentials apart from ladies cosmetics and handbags and catering."

As for the future, Teresa isn't optimistic. She said "I think it will have a long term effect on everyone. It is very tough and we are bracing ourselves for tough Christmas trading."

The counsellor

According to the manager of Dorchester's Citizens Advice Bureau Clive Browne, debt has become their "prime enquiry". Whereas in the past people would contact the bureau on Acland Road for welfare and benefits problems now debt generates the highest number of calls.

Clive said, "We're getting lots of young people with jobs, struggling to pay their mortgages... It's getting harder for them to renegotiate their mortgages if they fall into arrears because lenders are much tighter and taking a much harder line.

Retailers are trying to tempt the customers back

"Another trend is the growing number of enquiries from the over 50s and pensioners. Clive said, "People in their 80s are turning to credit to pay off their debts. They can't afford their food and fuel bills."

It's not just people struggling with domestic bills who are coming for advice. The bureau has seen at 25% increase in bankruptcy enquiries.

Cases involving home repossessions haven't been as high as expected but Clive Browne fears that the bubble has yet to burst. "We probably haven't seen the worst of it yet... Everyone's been living on virtual money and it's affecting everyone. I'm sure there are plenty more cases out there of people with debt problems that we don't know about."ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

The chamber of commerce

The economy has always risen and fallen in the past. While there may be a gloomy economic forecast, the president of Dorchester's Chamber of Commerce Alistair Chisholm is rather more optimistic. "We're in the middle of something, we've been here before and we'll be here again...Ìý

"We need to be doing all we can to promote the town and bring people to Dorchester... We have some distinct advantages - our heritage and our independence so that gives us some protection from the downturn."