Recession is "very likely" says National Homebuyers
The UK is "very likely" to suffer a recession, leaving many Britons struggling to avoid repossession.
[UKPRwire, Tue Feb 05 2008] That is according to website Fool, which cited the fact that people have very little money to spend in the current climate as being one of the major factors that it likely to lead to recession.
A recession will lead to all manner of problems for homeowners, one of the biggest fears being that firms will need to tighten their belts in order to survive.
This could mean mass redundancies, leaving many people facing the prospect of battling to avoid repossession.
"I think it [a recession] is very likely… consumers really do not have the money to spend as they did this time last year," said David Kuo, head of personal finance at Fool.
"The UK economy is reliant on consumer spending. About two-thirds of the economy is based on consumer spending and if consumers cannot spend money, either because they haven't got it, or can't get hold of it, then that is the reason why we will have a recessionary situation here in the UK.
Julian King, fast property sale expert at National Homebuyers adds, "People are financially strained. Although the idea of a recession like the late 80s is unlikely.
"People have more options to resolve their financial stress today than they did twenty years ago.
"Homeowners who are facing financial hardship should consider a quick sale of their property, or a Sell and Rent Back solution".
Mr King is a director of National Homebuyers, the UK's leading mortage rescue scheme provider, either arranging a quick property purchase or the ability for the homeowner to release equity in their property and rent their home back.