Two cheers as figures highlight a modest economic rebound at last

The UK is officially on the road to recovery, according to figures released by the Office for National Statistics.

GDP grew by 0.1% in Q4 2009 compared with the fall of 0.2% the measure showed in Q3.

Overall, the economy shrank by 4.8% last year – the most dramatic contraction since records began in 1949 – and has declined by 6% since the recession took its grip in 2008.

The 0.1% growth reported by ONS is lower than the 0.4% expansion that was predicted by many experts.

David Newnes, managing director of estate and letting agency Your Move, says: “There must be a lot of red-faced economists at the moment because these figures are well below forecast.

“But consumers should not feel downbeat due to the seemingly small numbers involved. At least it’s a move in the right direction and we did not see a seventh successive decline in the size of the economy. It seems we have finally emerged from the deepest downturn in a generation.”

He adds: “Furthermore, the figures show the retail sector was relatively strong in Q4 – it seems the great British shopper headed out to grab plenty of bargains in the sales in the lead-up to Christmas.

“And although 0.1% growth does not seem particularly impressive the typical revision in GDP is between 0.1% and 0.2% so this modest rebound could be trebled when tweaks to the figures are made in March.”

Number of high LTV mortgage products is on the up
The number of 85% LTV mortgage products deals has increased by 22% since last December, according to latest figures from comparison website Moneysupermarket.com.

The number of 90% LTV deals has also risen by 11%, while the average mortgage rate has fallen across the board.

There are now 384 products on the market for potential buyers with a 15% deposit and 165 deals available for those with a 10% deposit.