Recession Fears Spread As Brexit Weighs On Housing And Spending

A plunge in consumer and business confidence raised fresh concerns about a potential recession as a raft of data suggested Westminster’s Brexit crisis is beginning to strangle the UK economy. Bank of England figures revealed a slowdown in consumer spending, with the annual growth of consumer credit standing at 5.5% in July, markedly lower than its peak of 10.9% in November 2016. Shoppers borrowed £900 million in July, well below the £1.5 billion average from January 2016 to June 2018. Read more on the Evening Standard website.

https://www.standard.co.uk/business/recession-fears-spread-as-brexit-weighs-on-housing-and-spending-a4225136.html

Housebuilding Generates £38bn A Year And Supports 700k Jobs

The 74% increase in housebuilding activity in the past four years has provided a huge boost to the UK economy. Research shows that the house building industry in England and Wales is now worth £38bn a year and supports nearly 700,000 jobs. The report shows that last year the house building industry:

·         Supported 698k jobs, including 239k direct (18% of UK construction industry);

·         Generated £2.7bn in tax revenues (via SDLT, Corporation tax, NI, PAYE etc.);

·         Provided £841M towards infrastructure (incl £122m for new/improved schools);

·         Spent £11.7Bn with suppliers (90% of which stays in the UK);

·         Invested £12bn in land for new homes;

·         Agreed 50,000 affordable houses through s106 agreements worth over £4bn.

Read more on the Showhouse website.

https://www.showhouse.co.uk/news/housebuilding-generates-38bn-a-year-and-supports-700k-jobs/

House Price Rises Will Struggle This Year And Next

One of the UK’s leading group of economic experts has repeated its warning that housing market is not going to see any significant improvement at all in the second half of the year. The EY ITEM Club, a group of economists whose reports are routinely considered by ministers and the Bank of England’s monetary policy committee, says that while housing market activity has come off its 2018 lows, “it is still relatively limited and finding it hard to gain traction amid challenging conditions.” The Club says it is unlikely that “any meaningful upturn” will take place over the next few months and by the end of 2018 house prices will on average be 2.0 per cent higher than a year earlier. Read more on Estate Agent Today.

https://www.estateagenttoday.co.uk/breaking-news/2018/7/house-price-rises-will-struggle-this-year-and-next-say-top-economists

Level Of Concern About Housing Is Highest In 40 Years

Concern about housing in Britain is at its highest level for 41 years, according to an Ipsos Mori poll. The data shows 5% more people are worried about the issue than in September. It has risen up two places on Ipsos Mori’s list of concerns in Britain today, behind immigration, the NHS and the economy, but just above unemployment and poverty/inequality. Twenty per cent of people interviewed were worried about housing, compared to 52% for immigration, 37% for the NHS and 26% for the economy. The political research company points out the concern over housing is “most stark when the results are looked at geographically”. Eight per cent of people surveyed in the north of England saw housing as an issue but 43% in London. Read more on the Ipsos Mori website.