We are about to face the worst recession in almost 100 years
As consumer spending continues to slow, financial analysts predict that the upcoming global recession could lead to a downturn in the UK economy on par with the Great Depression.
Since the mid-1950s, recessions have brought the UK economy to its knees with staggering regularity. Regardless of their cause, these recessions have forced thousands of ordinary people across the country to lose their homes, forcing them to live beneath the poverty line while the rich get richer and those in the finance industry continue risky investment practices without consequence.
The last recession in 2008 saw millions wiped off the value of UK homes, as well as the collapse of many well-known high street brands. While the economy partially recovered over the years that followed, continuing low wage levels and spiralling rental costs has seen consumer spending decrease dramatically as savings fall to a new low and the accompanying debt continues to mount.
These factors, combined with the national insecurity regarding the fate of the country once the deadline for a Brexit deal has passed, have led experts to believe that the next recession to hit the UK – estimated to occur in either late 2019 or early 2020 – could easily be as bad, or even worse than the Great Depression of 1930.
And the UK is not alone. The ‘reign’ of US President Donald Trump has so far seen the US national deficit increase immensely as public services spending has been cut to allow for increased military funding. But what does this mean for the UK?
Usually, any recession stemming from the US economy has wide-ranging effects on the countries with whom they hold trade deals, and at a time when the British housing market is already struggling and thousands of estate agents across the nation are shutting shop, experts are warning that those looking to sell their homes fast may be in for a nasty surprise over the next 12 months as potential buyers delay their purchase until the market bottoms out – meaning that any vendor who needs to complete a sale in the short-term will have to accept a worrying low offer in order to sell.
The result of this likely recession is that interest rates and inflation will fall and the country’s output will slow. While these are normally excellent times for a buyer to pick up a bargain, the lack of savings and high rates of debt will continue to prevent them from saving for a mortgage deposit – even when sold house prices are at record lows.
Before the recession hits, however, those who are planning to sell their home can contact National Homebuyers for competitive quotes regardless of condition or location, with the added benefit that sales can often be completed in as little as two weeks.
Need to sell before the recession? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.