Real Recession Risk

Investment Bank Lehman Brothers have reported a one in three chance of the United Kingdom going into a recession in the next 2 years.

The risk of recession in the UK is a strong possibility and with this real risk looming, the Bank of England may be forced to cut rates further to help the economy.

It is now clear that the banking system is under strain what with households across the UK finding it more and more difficult to obtain finance to buy a new house or to remortgage their existing home - the credit crunch really is hitting us all.

The current credit crisis continues to impact on the property market and it is predicted that house prices will continue to fall by as much as 8% by the end of 2009.

In a nutshell, we are entering an economic slowdown which may last for 2 or 3 years.

Fingers crossed, hopefully the UK will avoid a recession but in the meantime, the UK people are looking at ways of reducing their outgoings by tightening their belts and looking at ways of saving on essential food goods, mortgage rates and utility bills.