Bank of England claim “housing crash past its worst”

â€ŔHousing crash is now past its worst”, says Bank of England

David Miles, the Bank of England’s new resident expert on the mortgage and property market, may have announced the best news of 2009 so far. Positive news that will resonate around every home in the UK, and will surely instill confidence with estate agents across the land. If his comments are correct, the UK’s housing market has stablised and is set for recovery and mild growth. This sits in stark contrast to his report a year ago that claimed the economy was the worst it’s been for 20 years. Nationwide, the building society, supported the turnaround by announcing that housing prices in June rose for the third time in four months.
“It may be the case that we get what looks like a very sharp rebound over the next few quarters: one might interpret that as a V-shape but that doesn’t really tell you an awful lot about what the likely path of GDP growth will be,” Professor Miles said. “The prospect of a rapid return to growth doesn’t seem a highly probable outcome.”

Professor Miles also added, however, that neither the housing market nor the UK economy could expect more than “anaemic” growth in the coming years due to the severity of the financial crisis that proceeded.

We’re just happy to finally see some prosperous news on the property horizon, and hope that it can be sustained. Hazlemere Windows is unequivocal in its support to the UK’s housing market, and feel confident that we can bounce back as one on the leading economies in the world.