Economic growth surprise
Mixed reactions from this morning’s announcement when the ONS data showed the UK economy had grown slightly during the final 3 months of 2024. The data showed a tiny increased of 0.1% in GDP during the 4th quarter. As economists were broadly expecting it to shrink, can this be the first green shoots of growth in the economy? Not quite yet, sadly as the measure for living standards in the UK showed a contraction for two consecutive quarters.
Stagnation?
As the UK still remains far weaker than any other G7 country, and that there has been zero cumulative growth since the election up until today’s figures, the future is uncertain. The impact of last year’s budget are yet to be seen, with the OBR expected to slash their growth forecasts for the rest of the year. Inflation is on the rise again, with the BoE expecting it to hit 3.7% this year.
How will it affect landlords and the wider property industry?
Interest rates and mortgages cuts could lead to cheaper borrowing, however property prices continue to rise and the impending stamp duty increases may affect market liquidity. In the round, there are definitely some opportunities available for landlords, but it certainly will be another tricky year for anyone in the private rental sector.
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