As 2023 draws to a close, the economic backdrop is slowly and steadily uplifting, with the housing market proving its resilience.
Improving outlook
Inflation experienced the sharpest decline in three decades, falling to 4.6% in October from 6.7% in September, now at its lowest rate since November 2021 (ONS). The economy is growing, and incomes are rising, with wage growth at 7.7% in Q3 (ONS). With encouraging news, there has been an uptick in consumer confidence, increasing six points in November to -24, with improvements across all measures (GfK Consumer Confidence Tracker). The pace of house price moderation also appears to be steadying, with a net balance of 63% of property professionals reporting house prices falling in October, down from 67% in September (RICS).
Autumn Statement
In the Autumn Statement, the Chancellor announced cuts to employee National Insurance from 12% to 10%, saving the average earner £450 per year. Reductions to National Insurance for the self-employed have also been announced, affecting an estimated 39% of landlords with five or more properties. The government has committed to supporting the building of more homes, extending the mortgage guarantee scheme and increasing the national living wage. Long-awaited reforms to the leasehold system have started their progress through Parliament, with new laws promising ‘significant new rights and protections’ that could be in motion before the next General Election.
To read the full report please follow the link brought to you form The Guild of Property Professionals at: walesreportwinter2023 – Page Turner (guildproperty.co.uk).
Or to discuss and find out what’s happening locally – contact your local Guild agent at #Holyhead #Llangefni #Bangor and #Caernarfon at https://tppuk.com/contact-us/.
