A look at the major trends in UK housing in the past century, including the trends on housing tenure, house prices and the supply of new houses. Victorian housing The Industrial Revolution saw rapid growth in inner cities as people flocked to the city for new factory jobs. This accommodation was often hurriedly built by …
Since the end of 2019, the US economy has grown at the fastest pace in the G7. President Biden can claim the fastest job growth of any president. Yet despite strong growth in jobs and GDP, there are record low levels of dissatisfaction as Americans feel the pinch of inflation and falling real wages. Firstly …
Last Thursday the OBR published a detailed forecast for the UK economy. It made for grim reading – the longest recession for a generation, falling disposable income and real wage growth around 35% less than its pre-crisis trend rate. Why Experts Predict 10% FALL in House PricesWatch this video on YouTube Amongst the dire economic …
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 …
The recent surge in UK government gilts is a warning that unfunded tax cuts in a time of high inflation can cause markets to sell off UK bonds and make it harder to finance future government borrowing. After 15 years of ultra-low interest rates and little concern about rising debt, it is a reminder that …
For many people, especially those under 40, the UK housing market appears broken, with excessive prices making it difficult to buy and very expensive to rent. Housing costs are one the biggest factors in a long-term cost of living crisis. The UK isn’t alone, with many advanced economies also facing a broken housing market and …
Earlier this year, the World Bank warned up to 40 nations are at risk of defaulting on their sovereign debt. Already Sri Lanka, once hailed as an economic jewel, has badly defaulted as the country slides into economic turmoil. But, the bank warns many others, such as El Salvador, Ghana, Tunisia, Egypt, Kenya and Argentina …
Higher interest rates increase the cost of borrowing, reduce disposable income and therefore limit the growth in consumer spending. Higher interest rates tend to reduce inflationary pressures and cause an appreciation in the exchange rate. Higher interest rates have various economic effects: Effect of higher interest rates Increases the cost of borrowing. With higher interest …