Spring growth for property predicted
ERNST & Young is forecasting the UK economy will rebound in the second half of this year and grow by 1.2 per cent next year, boosted by a housing market revival next spring.
In its Item Club autumn forecast, Ernst & Young say GDP will be down by 0.2 per cent at the end of the year following a return to growth in the second half of the year.
The report expects housing transactions to bottom out this autumn before recovering in spring, with house prices set to follow.
It adds that the move back to balanced growth in the medium-term will depend on a recovery in world markets.