The outstanding difference between our current recession and past recessions is that property prices have generally held up in the UK, they have been underpinned by low interest rates and increased benefits for rental housing ( In past recessions you would have expected prices to fall by as much as 30% ) and I think this is the largest contributory factor as to why our economy has not nosedived over the edge of a cliff. Other countries have seen property prices fall by as much as 70% and this is almost armageddon levels for individuals who are highly vested in property aswell as with the banks that have loaned recklessly. Property prices here are now at an inconceivably high level for recessionary circumstances, but hopefully, though not certainly, will defy the historic economic laws of recession and help to land us safely the other side of these worrying times.
Not sure where you live but in my experiences that's not the case.
My parents' house value has dropped by about 40% (north west).
My house value dropped by about 10% (east midlands, where property prices have never moved much in either direction anyway because they are so cheap to start with).
My dad bought a shop and flat pre-recession for £200k(ish) which was a massive bargain. He's spent at least 50k doing it up, yet it's worth less than when he bought it in 2007/8ish. He rented the restaurant out to a guy who then went bust and literally ran away with his family after defaulting on rent for months. He put it up for auction with a starting price of 150k and yet didn't get a single bid, even though the flat is rented. It's been on the estate agents' books for forever. He has other shops that he's trying to sell and had several interested buyers, none of whom ever manage to get the bank's support to be in a position to actually follow through.
My dad is completely screwed because his tenants (commercial & residential) can't afford to pay and there's no one to replace them and actually keep up with payments even if he could find other people and had the heart to kick young families out of their homes. His staff are stealing from the tills. He had one member of staff take him to court over unfair dismissal; this guy tried exactly the same thing with 3 other employers just to get some money. This is a guy who begged my dad for a job because he'd otherwise have been homeless.
People who used to get full-blown family takeaways from shops on a regular basis now ask if they can buy pizza by the slice or share a portion of chips between 3.
My dad himself is working 12 hour days plus, including ripping out and fitting kitchens, bathrooms, remodelling flats, all physical work etc. etc. at 62 as he's always done; he wants to cut back but there's no way he can afford it.
It's hard out there. I think it's easier for people in technology sectors at the moment, but this stuff with HP worries me because it's the first sign that technology is being significantly affected.
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