A technical recession itself is less significant to the housing market than the impact on sentiment, according to leading residential property advisor Hamptons International.
This morning, HM Treasury announced that the UK economy fell by 0.2 per cent over the first three months of 2012. This follows a fall of 0.3 per cent in Q4 2011 and means that the UK has entered a technical recession.
Adam Challis, Head of Research at Hamptons International, commented: "This is a disappointing result for the fragile UK economy, seeking to build some momentum towards a sustained recovery. It also has important implications for confidence in the housing market. Based on current transaction volumes, we are moving house once every 25 years, which is simply unsustainable."
"While today's figures are a setback, this period of relative economic stabilisation has created opportunities for property buyers to take advantage of realistic pricing and very attractive mortgage rates."
"The supply of housing for sale in London and the South of England has improved by six per cent since the start of the year. We are advising clients to take advantage of the Spring market, which is likely to be particularly active this year ahead of the London Olympics."
For media enquiries please contact:
Aisling Gray, Senior PR Manager, Hamptons International
020 7758 8422 / 0778 611 8634, email@example.com
Adam Challis, Head of Research, Hamptons International
020 7758 8438 / 07760 163 1210, firstname.lastname@example.org