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Can the housing market really recover as unemployment rises?

The last couple of days have seen a number of articles in various newspapers regarding the UK property market and the fact that surely it is impossible for property prices to recover with unemployment has yet to peak. On the surface we have seen a number of reports from various organisations which suggested that UK property prices are on the way up, but are these reports really objective?

There is a growing concern that many reports regarding a potential recovery in the UK property market are more optimistic than objective. We certainly have the formation of two separate camps, one hoping and suggesting that the UK property market has bottomed while the other is forecasting a very difficult few years for the market. The truth is probably somewhere in between but if you were a potential investor in the property market, or a homeowner, the situation is very difficult to understand and follow. There are so many opinions, both for and against the recovery, so many facts being wheeled out and expert names appearing almost every day.

As yet there has been no significant increase or even stabilisation in property prices although there have been signs of potential increased interest over the last few weeks. Whether this continues and mushrooms into a full-blown recovery is very much open to debate.

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