2024 has seen UK house prices seamingly defy gravity once more, with prices rising back close to the all-time peak. If you bought an average house at the start of 2020, you would be sitting on capital gains of £53,000. A 25% rise. What Will happen to UK House Prices in 2025?Watch this video on …
The past couple of years have seen a surge in house prices around the world. This has pushed house price-to-income ratios to record levels – in many cases, outstripping the last boom of 2007. This is a major warning signal prices are unsustainable and in recent months, prices have started to fall rapidly, with at …
Current UK Inflation Rate CPI inflation rate: 2.3% (headline rate) CPI – D7G7 at ONS Source: Raw data General inflation tables | CPI annual % change D7G7 at ONS Other measures of inflation (CPIH) CPI including owner occupiers’ housing costs – 6.2% (CPIH – L550) See: Measures of inflation Reasons for low inflation in …
A look at how the housing market and changes in house prices affect the rest of the economy. In summary: Rising house prices, generally encourage consumer spending and lead to higher economic growth – due to the wealth effect. A sharp drop in house prices adversely affects consumer confidence, and construction and leads to lower …
In the space of 18 months, Bank of England base rates have risen from historical lows to 5%, with more expected. It’s a remarkable turnaround for an economy accustomed to ultra-low borrowing costs – the rapid increase in rates have seen soaring mortgage costs and threatens to push an already struggling economy into recession. Yet …
Core Inflation. This is a measure of inflation which excludes certain volatile and seasonal prices. It will be based on the Consumer price index but exclude prices such as Petrol (subject to oil price variations) Food (subject to seasonal variations) Core inflation will also exclude the impact of government excise duties. Core inflation is seen …
Central Banks around the world are increasing interest rates because of concerns about inflation. However, the curious feature of this economic cycle is that Central Banks are raising rates, just as economies go into recession. Higher interest rates will, therefore, exacerbate the economic downturn and cause a deeper recession and higher unemployment. So why are …
Research shows that historical interest rates have been consistently falling, ever since the first interest rates could be measured in the medieval ages. Although there are cyclical fluctuations, there is a consistent long-term trend for real interest rates to fall at a steady rate. The interesting thing is that this phenomenon has been noticed in …