Is the property sector on the verge of a double dip recession?
As if the UK property sector was not under enough pressure, today saw news that the number of mortgage approvals in August fell dramatically compared to the same period last year. A number of experts now believe that UK property prices could fall between 10% and 15% over the next 12 months which would be a nightmare scenario for many in the UK.
Even as the UK property market appeared to pull away from the recent recession there were many in the UK who believed that the headline performance was not replicated across the board. There is a massive variance on property prices and property price performances across the UK with an enormous North/South divide. When you also take into account that London is effectively a micro-economy in itself then perhaps the recent performance of the UK property market has not been as positive as the headline figures might suggest?
There is no way that the UK economy itself could escape a double dip recession if the UK property market was to suffer such an event. As a consequence the UK government, the Bank of England and various regulatory bodies around the UK will be crossing their fingers and hoping that the UK property market and the UK economy avoid a double dip recession.
Share this..
Related stories
RICS house price index under pressure
The prominent Royal Institute of Chartered Surveyors (RICS) house price index fell to -36 in the three months to September from -32 in the three months to August. This fall in the index reflects the fall in house prices in England and Wales and is the largest one-month fall since May 2009. While the drop is effectively blamed upon sellers rushing to the market to sell before further perceived weak...
Read MoreIs it fair to blame the media for falling house prices?
A number of estate agents and surveyors around the UK are attempting to place the blame for the ongoing downturn in the UK property market on the media sector. However, a number of prominent media property experts also point out that when the market is rising there is no credit given to the media in the UK and it is only when prices began to fall that damaging headlines "are to blame". While th...
Read MoreRBS looking to offload £15 billion of property assets a year
As the long-term goal of unwinding Royal Bank of Scotland's distressed loan book continues the company has revealed plans to offload upwards of £15 billion of property assets a year for the foreseeable future. The company will also be tailing off the vast majority of property loans in the UK and Europe which will unwind the company's loan book going forward, although there are fears of more write...
Read MoreHouse price inflation slows
Annual house price inflation in Britain eased during March, government housing data has shown.Official figures released today reveal that during the third month of the year house prices rose 10.9 per cent compared to March 2006.But the corresponding annual house price rise recorded in February stood at 11.8 per cent.In London meanwhile annual house price inflation was 13.9 per cent in March, more...
Read MoreWhen will first-time buyers be allowed back onto the property ladder?
Over the last couple of weeks it would appear that UK mortgage approval numbers have been rising, and are in fact at double the number seen in November/December 2008. This would appear to give something of a shine to the UK mortgage market when in reality there is still a lack of realistic deals available first-time buyers and indeed unless deals do appear many may well miss out again. In what...
Read More