The Office for National Statistics (ONS) has revealed that the UK is officially in recession for the first time since 2009, following two successive quarters of economic decline.
The latest quarter saw the economy shrink by 20.4% compared with the first, as coronavirus and related lockdown measures between April and June resulted in the biggest decline in economic growth on record.
The ONS said that the economy bounced back in June as lockdown measures eased.
Jonathan Athow, deputy national statistician for economic statistics, said: “Despite this, gross domestic product (GDP) in June still remains a sixth below its level in February, before the virus struck.”
Source : Insight DIY Team
Comment – Property
Comment from Ross Counsell, Chartered Surveyor and Director at Good Move, on the UK property market during the recession:
“The UK is now in recession for the first time in 11 years due to the impact Covid-19 has had on the economy.
“The UK property market has been one of the most exposed industries to the government’s restrictions with estate agents having to close their doors and buyers/sellers pausing activity throughout lockdown.
“Today’s news of the recession is undoubtedly going to worry those looking to buy a property as they’re going to want to protect their finances as much as possible, therefore they may be more inclined to stay put in their current home. Sellers may also be less inclined to accept lower offers on their homes, again, to protect their finances. Some may even take their homes off the market until the economy picks back up and their confidence is resumed.
“It’s now more important than ever for estate agents and advisers to support their clients and find the best possible deal for them to help protect their finances long-term. This and other measures the government continues to put in place will help keep the property market moving.”
“On a positive note, today’s construction output statistics paint a more positive picture with output growing by 23.5% in June. It’s encouraging to see the figures point towards a recovery in construction work which is down to the phased re-start on work. As mentioned above, the government must continue to put measurements in place to help keep construction moving to ensure we continue to see an increase month-on-month.”
Source: Good Move