UK economy to shrink 'most in West'

Posted: 30 Jan 2009 08:30:34 GMT

Research from the International Monetary Fund (IMF) shows that the UK economy will shrink the most of any Western country in 2009, putting further pressure on homeowners hoping to sell their properties in a timely fashion.

The UK economy has been predicted to fall by 2.8 per cent this year, the IMF has confirmed, while it also reduced its forecast for global growth, from 2.2 per cent in November 2008 to just 0.5 per cent.

"Having let personal debt soar while allowing a huge bubble to form in the housing market as the banking sector ran riot, the UK will now be saddled with the consequences for many years," said Liberal Democrat shadow chancellor Vince Cable.

"Having seriously overestimated government revenue from the City of London and the housing market, there will be a serious fiscal problem for a long time," he added, hinting to a prolonged lack of confidence from the housing market."

The negative news will do little to boost the confidence of potential buyers, and it is likely that housing transactions will remain low throughout 2009.

Homeowners who need to sell sooner rather than later, however, may benefit from selling their property online, which could attract a greater number of potential buyers than a traditional estate agent's window.


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