Talk of 'double dip recession' could affect the housing market

Posted: 11 Feb 2010 10:25:34 GMT

Commentators who talk of the possibility of a double dip recession could cause people to loose faith in the housing market, it has been suggested.

Director of MyMortgageDirect Catherine Hearnden says that if people talk about this happening for long enough then would-be owners will start to believe it and be put off purchasing a property.

"The only reason that people are saying 'I'll go and get a mortgage and buy a house' is because people have told them that the recession has finished. It is all to do with what they believe," she states.

Ms Hearnden adds that consumers have just as much money now as they had three months ago so there is no sign of a double dip recession occurring in the near future.

But she warns that in general British people are very susceptible to what they hear.

It would appear that the general outlook for the housing market looks relatively positive, with a recent report from the Centre for Economic and Business Research predicting a six per cent rise in UK house prices by the end of 2010.

Additionally, the mortgage lending outlook is expected to have improved by the end of the year, with around 72,000 home loans to be approved every month.

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