Latest GDP estimate announced, -0.2pc growth

Author: David Whittaker Posted on: 25 January 2012

Economic growth is built on confidence as much as anything else, so this latest estimate is as welcome as a rat in a sack of chickens. All signals point to 2012 being tough a year. Lending levels may be slowly improving as the BBA suggests today, but unless borrowers are confident in their ability to service their loans and property prices rise, there’s not going to be a marked increase in the appetite to borrow and more strain will be placed on the private rental sector. It’s important therefore that those in a position to support the housing market are able to do so.

Demand is pushing rents higher and higher so it’s crucial that more property is brought onto the market to balance the supply and demand issues. Professional landlords and investors need the support of lenders and government to bridge this gap, without them the housing crisis will become much more acute and we’ll have a lot more to worry about than one quarter of negative GDP growth.

GDP estimate