Recession a one-year wonder, say Brits

24/08/2009

With Japan, Germany and France recently pulling out of recession, a new survey has found that 6.3 million Brits, or 13 per cent of adults, believe the UK's economic slump will be a "one-year wonder" that will be over by the end of 2009.

According to a new survey by uSwitch.com, another 12 per cent believe the recession will be "done and dusted" by next March.

More than one in five (21 per cent) think the housing market will turn around by the end of this year, although 44 per cent sense it will be the end of 2010 before there is a sustained upswing in property prices.

One quarter of those questioned by the comparison website said unemployment will start to fall by December 2010, although 11.5 million adults think more than one in ten Brits will be out of work by the end of the recession.

Unemployment rose by 220,000 to 2.43 million in the three months to June 2009, according to the Office for National Statistics.

However, there are some positives amid the doom and gloom, with 35 per cent of consumers saying their mortgage repayments have fallen because of declining interest rates, while 54 per cent had bagged a bargain on the high street as retailers battle for customers.

Commenting on the figures, EuroDebt director Kevin Still said: "I think these type of survey results are very misleading and paper over the severity of the financial problems facing the government, the lending institutions and the majority of UK residents.

"Even if there are promising signs of recovery, there will be consequences with many of the consumer protection devices put in place by the government being relaxed and the likelihood of meaningful interest rate rises that have cushioned the effects of the recession for a number of homeowners.

"It is very likely that unemployment will continue to rise and that the levels of insolvency will continue to rise. EuroDebt would expect the number of Debt Management Plans and IVAs to continue to rise.

"Many businesses are at their most vulnerable when trading conditions improve, especially if the availability of business finance remains tight. This puts employees at risk."

Tags; Current UK Economy, Young Family Finances, Retirement Money Problems, Credit Card Lifestyle, Recent Graduate Debt,

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