It appears as though the dark days of the 2009 recession are coming to an end as new figures demonstrate a first growth in the UK economy in almost 2 years. Many economists still remain sceptical as the rise was a tiny one at 0.1%. Employment figures also appear to have fallen too, prompting noise that things are finally starting to turn.
What does this mean for the repossessed homes market? With new figures due to be released soon, it will be interesting to see whether there has been a reduction in the massive numbers of homes which were repossessed over the last 12 months.
Many economists believe there is no reason to be excited yet, as the figures could be a result of a surge in spending over the Christmas period and the availability of extra temporary jobs during this time. The economy is still operating way below the pre-recession days and the levels of output which should be generated.
The positives can be found by examining the markets of other world countries, the USA and Japan as well as Germany and France all came out of recession last year.
The government car scrappage scheme has played a major part in repairing damage done, with soaring car sales helping to boost the economy but it’s important to remember that this is about as weak growth as possible.
It’s fair to say this level of growth is more of a stagger and the next 6 months are due to be critical, with a need for exporting from the manufacturing industry to help further maintain this upturn.
Tags: repossessed homes, UK recession