Quick Move Now’s Donna Houguez comments, in response to the UK’s entrance into a double-dip recession:
“The announcement that the UK has entered its first double-dip recession since 1975, a situation expected to last well into the summer, adds further stress onto an already severely depressed housing market.
Whereas a positive growth result may have prompted a growth in confidence and the start of a relaxation of lending criteria, we expect the surprise -0.2% shrinkage of the economy to further restrict the number of buyers who will be able to secure a mortgage.
The Chancellor is presently ruling out implementing growth policies as a result of the fall. Therefore, the consequences of the general pessimism caused on employment are likely to be that more of the population will struggle financially, we will see an increase in repossessions and property values will decrease further.
On a positive note, the rental sector is set to receive a boost from this announcement due to the increasing number of people unable to buy, which, along with the Government’s changes to housing benefit, should see rental values increase accordingly.”
The news of the double-dip recession is likely to affect those potential buyers, not just with securing mortgage finance but by increasing worries about job security. This in turn is likely to reduce conveyancing transaction levels further.
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