UK unlikely to face recession, expert says - buy to let mortgages

Published: 20.3.2008

A property expert has claimed that a recession is unlikely to take place in the UK in the near future.

David Miles, chief economist at Morgan Stanley, made his comments at the Great Housing Market Debate, which was organised by Wriglesworth Consultancy.

Although he acknowledged that house price growth is slowing, he suggested that other aspects of the economy would probably not be overly affected.

Mr Miles cited a number of factors which could support the wider economy in the UK and give property investors, including those with Buy to Let Mortgages, hope.

"GDP growth is expected to increase by one and two per cent in the next year and, although unemployment levels may rise, it would not be by much," he stated.

He added that he was "not anticipating a recession" in the UK.

Although various studies have recorded house price dips, one recent report - the Financial Times House Price Index - indicated that prices increased by 0.5 per cent between January and February 2008.