Jun
11
UK Recession?
By
Have you or anyone you know been affected by the UK recession that’s in the news daily, none of the people I spoken to have been affected, nor have their friends and families?
The company I work for has never been busier, my barber’s taken on 2 extra people in the last weeks to cope with the extra business, and try to get a table Thurs-Sunday in any restaurant in London, so where’s the recession hitting?
Sorry for being so thoughtless, realise now that for some, the resession is very real and affects them every day.
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10 Comments
June 12th, 2010 at 8:27 pm
You are right, currently there is no recession. Growth might not be as high as it was, but there is still economic growth.
June 14th, 2010 at 11:40 am
It could well start with possible Industrial action taken by Fishermen, transporters, dockers, who all rely on petrol inorder to make a living. If the price of petrol continues to rise then many of these businesses could find it hard to continue, thus opening the way for shortages in shops and supermarkets etc. Britain’s imports could be hit as well.
June 16th, 2010 at 2:44 am
I’ve been self employed for several years, recently I lost 2 of my big contracts due to organisations cutting back due to the ‘recession’ – this also happened to my partner. He has been working on min wage and I have been unemployed. I have a job starting in a month, thank goodness but in the meantime we have had no money, have defaulted on the rent, and the car is about to be repossessed. The banks are not understanding as they are reluctant to give anybody credit at the moment nor be flexible on replayments on loans or credit cards. WE have both tried to get a bridging loan to see us through the next month but been refused by everyone as they are harsh with who they give credit to at the moment. We have no food in the cupboard apart from some frozen sausages and 3 jellies.
but I am grateful I will have a job soon, and some are not in that lucky position. I think in London maybe things are different – there are always more jobs etc and the big city is where the money is so you experience may be different, not necessarily insensitive. However beware, what some are experiencing may hit you too pretty soon, make sure you have a secure job and a little in the bank just in case and pay off as much of your credit as you can now!
June 18th, 2010 at 1:44 pm
It’s on its way – hundreds of thousands of job cuts are not yet working through the system…
How’s your house value doing?
These things take time, believe me we have a financial tidal wave on the way, we just don’t know how big or how long yet.
June 20th, 2010 at 10:06 am
House prices in my area have gone down for 6 months in a row, some of the ‘exclusive’ apartment developments have cut up to £40k off their sale prices. There are half as many vacancies advertised in my town as one year ago as very few people are moving jobs as they fear how the recession will effect them and don’t feel secure enough to start chopping and changing jobs at the moment. Tourism however has increased as people can’t afford to holiday abroad as much due to a clampdown on credit facilities and general fear of not being able to pay off their credit cards that have increased in interest recently.
June 21st, 2010 at 11:44 am
Thanks to the ‘credit crunch’ and my credit card companies doubling the interest rate, I now have to pay an extra £200 a month on my borrowing – that’s nearly my whole month’s share of the rent. I can’t afford it so I am no longer going out, all I do is work and come home and sleep and work and come home and sleep…. I am having to sell the car to pay for train fares to get to work. I have tried getting a better paid job but there are few about as people are scared to leave their jobs in case they can’t get another so people are staying put. I could just manage before, I had £200 disposable income a month, now I have nothing left so all I am doing is living to work. That’s big enough effect for me thank you very much!
June 24th, 2010 at 4:02 pm
we nearly bought an apartment 6 months ago for £198k. We thought there may be a house slump and recession on the way so we thought we’d wait just in case. There are apartments on sale in the same block almost identical to the one we nearly bought on offer for £169k now – and most of the others in the block are out for rent at a very low £400 a week. Lots of greedy people bought buy to let and now the recession is hitting them first and they are desperately trying to let out their properties now, or sell them before they go even lower. Thank goodness we didn’t buy, we’d be paying a huge mortgage now instead of taking advantage of cheap rent. Even considering the possible future equity we’re still better off renting. Prices are going even lower. Do you think this isn’t hitting people????
June 26th, 2010 at 12:41 am
my dad has been layed of so we cant go on holiday this year, he says it is recession. he’s very bad mooded as he cna’t get another job. I think it is hitting. i have a saturday job but not much good on little money. when i leave school maybe I can help. I hear the news and I think ther is recession on my own expeirence
June 29th, 2010 at 11:30 am
The media coverage of a UK recession actually makes it more likely to happen. Self fulfilling downside sprial effect.
In fact the genuine fears on this subject are around an impending recession …not one hitting right now.
The main players (Government, banks, major industry) are frantically trying to work to avoid a spiral towards this, although nearly all are agreed that entry to recession is inevitable (at least privately)…it’s now all about how to minimise the depth and length of crisis. The trouble is that the usual / historic levers to help recovery are not functioning in a way seen before.
The combination of credit crunch, world economy constraints and rising inflationary pressures, are driving the UK economy into an unprecedented position. Getting out of what is coming down the tracks may mean we have to see more radical government intervention than usual in this country – and more akin to US style. Heavy tax rebates (US recently did this to stimulate demand), significant Base Rate cuts etc. We usually drip feed adjustments into the system and trust to market forces to realign……more material action may be used – watch for this.
If your looking for signs of problems hitting right now…look no further than the UK housing market….housing transactions likely to be c30-40% down on last year…house prices going to be down c10-15% by end of year…mortgage rates decoupled from BoE base rates – and rising (despite downwards sloping yield curves in outer years) – so that fewer people can get secured credit….and tightening of lending criteria for non-secured loans. Not lending as much means that individuals and companys will not be able to leverage debt and the economy slows.
Just see how many of the people you speak to are affected in 6 months time!
Nb…I should declare an interest ….I work in a position that grants some close insight.
July 2nd, 2010 at 2:59 am
Let’s hope that UK recession do not occur, otherwise it can have a very devastating effect on all sectors of the economy. Right now UK is in a slowdown. And if the banks, government and those sectors not effected in this slowdown, do not take steps to arrest the situation, recession can become real and even they will be effect. In a recession banks and the government may even collapsed. So it is very important that banks and the government play their part to help businessmen to continue doing their business by providing them with the necessary finance or the capital which they needed most to survive. The should extend financial help to all genuine businessmen and not only to their existing customers. Or to turn down requests for help, because they do not want to take risks. Banks are essential financial services providers and should be the lenders of the ‘ last resort ‘for genuine businessmen, like the Bank of England is the lender of the last resort for all Banks.