UK property market should escape double dip recession

The UK property market is forecast to increase by around 3.5% this year and 1.9% in 2011 despite the fact that many analysts appear to be concerned about the UK economy. As a consequence, it is highly likely that the UK property sector will avoid a double dip recession although there is possible scope for a further small downgrade of forecast growth next year.

Despite the fact that many housing experts are concerned about the relatively high price of UK property, there appears to be significant demand at lower levels to offer support in the short to medium term. Whether this support will still be there if the UK economy takes a downward turn remains to be seen but there seems to be underlying strength in the UK property market at the moment. This will come as a welcome surprise for many UK property owners who have become more concerned about the employment market and the strength of the UK economy over the last few months.

As we have mentioned on numerous occasions, the UK property market is central to the UK economy and the personal wealth and financial well-being of many of the UK population.