Can spring be bringing with it the first signs of a cautious recovery for the UK economy?

At the end of a torrid first quarter, there are those that are reading into some of the recent statistics issued towards the end of this month and saying that there are some positive signs around.

Depending on which angle you are looking from the fact that house prices are continuing to fall should mean something. In March, house prices were almost ten percent lower than they were for the corresponding month of last year; however they only dropped by as low a percentage than in any of the ten previous months, according to a recent report.

This can mean two things, for those who are property owners, they can take some comfort in knowing that the value of their property is decelerating, and for those who want to get (back) into the property market, prices are becoming attractive and in easier reach.

Statistics are showing that the average price of a property in the UK is now sitting at just over £150,000, less than one thousand pounds down from February 2008.

Property owners were beginning to feel the benefits of reduced mortgage payments evidenced by an increase in consumer spending, proof that the treasury efforts to keep the economy running were beginning to bear fruit.

Another positive sign was the constant increase in mortgage approvals so far this year. The number of approvals rose to close to 40,000 in February and while there are no figures available for March as yet, indications are that the positive trend has continued for the month

The infusion of taxpayer’s money into the banking system has generated no little controversy, with many taxpayers feeling hard done to, especially in the light of the recent bonus controversies. However there are those that say that the government had no option but to support the banking system, and iron out its flaws for the future.

During his recent trip to South America, in which he was a member of Prime Minister Gordon Brown’s entourage, U.K. Business Secretary Peter Mandelson strongly suggested that the ongoing criticism of the British banking system should be allowed to ease off, as it was vitally important that the public regain some of their confidence in the system. Mandelson, who was the first UK minister of authority to speak out in such a direction, pointed out that while the banks have been the butt of some very harsh disapproval from the UK public as well as the government, yet it was time now to look forward.

Mandelson added that a situation had now been created where banks should succeed and go on to serve the British economy and society in a much more effective manner.

• Can One Choose Not To Participate In A Recession? Dave Ramsey thinks so. Let me preface this post by...
• Antique Appraisal 101 There is quite a demand in today's market for antique...
• Basics of Budgeting 2 Tracking Your Expenses Now that you are familiar with how...

Tags: Financial News, Gordon Brown, Mandelson, Mortgage, Mortgages, Peter Mandelson