23 Dec

Recovery to start in 2009, states expert

Recovery to start in 2009, states expert

A property expert has advised that 2009 will see the bottoming of the market, although strong growth will have to wait until 2010 and beyond.

In an interview with the Daily Telegraph's TV channel, chief executive of property investment firm Assetz Stuart Law predicted that recent action taken by the government should ensure the recession is "relatively short".

On the basis of this analysis, he remarked that the market will bottom out in the summer of 2009 and over the course of the year there will be increases in transactions, partly due to rising lending as other banks follow HSBC's lead and offer more mortgages.

There will also be lower mortgage costs as the base rate falls to one per cent and possibly lower, he added.

Mr Law's comments are in line with those of others who have said there will be a recovery in due course.

In his interview with the Financial Times last week, Bank of England deputy governor Charles Bean remarked that the one certainty about any recession is that it will come to an end eventually.

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