Bank of England (BoE) governor Mervyn King believes the UK's economy will mount a recovery in the coming years, but there will be plenty of challenges along the way.
Mr King suggested there is cause for optimism, despite the fact Britain's gross domestic product (GDP) contracted by more than expected in the fourth quarter of 2012.
Many experts had been predicting slight growth during the three-month period, but the Office for National Statistics recently revealed that the economy actually shrank by 0.3 per cent.
These are only preliminary figures and could easily be revised either way, but unfortunately they are only likely to go down rather than up at the moment.
The BoE has also warned that the outlook for inflation has worsened since its last report in November, which will put even more strain on households and businesses.
However, Mr King believes the UK's GDP will be firmly back in positive territory by the end of 2014 and talk of a triple-dip recession is premature.
"The UK economy is set for a recovery but that is not to say the road ahead will be smooth. This has not been a normal recession and it will not be a normal recovery," the BoE chief remarked.
Of course, the property development industry is just one of many sectors that have been blighted by the nation's inability to get back on its feet following the first economic collapse in 2008.
Although Mr King thinks another recession is unlikely, the latest GDP figures will hardly fill investors full of confidence.
It is therefore increasingly important that property traders are shrewd when looking for new additions to their portfolios.
Now is the time to be increasingly selective and focusing on the higher end of the real estate market is definitely the way to go.
While not strictly recession-proof, the UK's most desirable properties in the most popular areas will always attract attention from buyers, and investors can still make sizeable profits - particularly on buildings in certain parts of London or Manchester.
Economic recovery 'unlikely to be smooth'
