After the recent ‘climate crisis’ of an ‘extreme’ summer, there’s a definite chill in the air and it’s not just the weather. Economic data screams out ‘recession’ (though hopefully not its uglier twin, ‘depression’) as the country heads inexorably towards the bottom of the financial Marianna Trench. Portents are ominous – the BoE has yanked interest rates up from around their ankles, mortgage providers are increasing their lending rate and pulling some of their historic fixed-rate products, and ONS figures showed inflation hit 10.1 per cent in July – up from June’s 9.4 per cent.
Although the mass-suicide of lemmings is disputed (apparently, they’re just following biological urges and can’t always see the edge of a cliff), it would seem that property valuers and analysts are indulging in the same behaviour. The rumour-mill has been cranking out reports that prices in the residential property market will undergo a significant correction of circa 14% after the Spring of 2021.
Is this prescient foresight or doom ‘n’ gloom prognostication? Let’s look at the economic fundamentals.
One side-effect of all this Covid chaos is the growing chasm between residential property consumers and the parlous state of the economy. Continue reading
For goodness sake Mr. Sunak, take a wrecking ball to the Stamp Duty Escalator and let the markets fly free at last… the Treasury needs the revenue, retail spending needs the stimulus as does the UK economy
What an absolute shower! Thanks to the latest – most unwanted – Chinese import, which has brought most of the world to its plague-ridden knees, the once-flourishing UK economy is teetering on the edge of a Beachy economic Head and staring into the fiscal abyss. Continue reading