Opinions Vary on Measurement of UK Housing Recovery

Opinions Vary on Measurement of UK Housing Recovery

CheckRisk, the investment strategy group, has released a report discussing the status of the recovering housing market. The report points to many things which could send house prices into disarray. The reduction in mortgage lending, high inflation and higher interest rates are just a few of the factors which could impact the recovery in a negative way. The report described the next steps of the UK economy as "entering a precarious economic environment".

In contrast to the CheckRisk outlook is the latest release from Nationwide, which indicates less of a decline during 2011.

Welshman Robert Gardner, Nationwide’s chief economist, commented on the possible fate of the property market, saying: "With the economic recovery expected to remain sluggish, the most likely outcome is that the property market will follow suit, with low transaction levels and prices moving sideways or modestly lower through 2011."

The Home Builders Federation has added to the concerns within the UK property market. The group is once again questioning the major shortage of houses which exists in the market. This concern is confirmed through the fact that fewer homes were built last year than at any other time since World War II.