If you are investment planning in Cheshire or Oswestry, UK GDP rose by 0.3% in November. The latest data published by the Office for National Statistics (ONS) shows that gross domestic product recovered following an earlier drop in October.
Real GDP was up 0.1% over the three months ending November. The government celebrated the news, adding that it is increasing investment in sectors including planning, transport, infrastructure and energy.
Analysts have said that the GDP increase indicates evidence of life in the UK economy following a sluggish period. Luke Bartholomew at Aberdeen predicted that the Bank of England will keep interest rates at 3% this year, provided ‘inflation plays ball’.
Estate agents are also optimistic for the housing market. Jackson Stops are predicting house price increases of two to three per cent in the UK, with normality resuming for the first time since COVID. With the Budget out of the way, fears of hefty wealth taxes have receded, whilst lower interest rates are poised to boost the number of residential property transactions.
The proposed ‘mansion tax’, which is scheduled to be rolled out from 2028, has had less impact than originally anticipated. The annual levy has been set at £2,500 for properties valued at above £2 million and £7,500 for those exceeding £5 million.
Estate agents are predicting a busy Q1, fuelled by simmering demand pre-Budget, and which it expects to continue into 2027. Overall, the feeling is that after years of shocks and turbulence, we are seeing a return to a more familiar and more stable housing market.
