The 7am Cut
In the news this week: interest rates to fall alongside inflation; buyers’ confidence returns to the UK property market; and the north continues to outperform the south…
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Bank of England to cut interest rates to three per cent in 2025 after inflation drops
“Interest rates could fall to as low as three per cent next year as the Bank of England slashes the cost of borrowing in response to lower inflation, according to new forecasts.
Economists at Capital Economics, a consultancy, think the Bank will likely have to cut interest rates much faster than markets expect in response to plummeting inflation.”…
– Chris Dorrell, CityA.M
Confidence returning to property market as buyers pay up
““The outlook for the housing market has certainly improved, partly because the mortgage market has recovered more quickly than expected,” said Lucian Cook, head of residential research at Savills
Richard Donnell, Zoopla, said activity was strongest in places where houses are more affordable, notably Yorkshire and the Humber and the northwest of England. The market in the southeast, where prices are highest, remains the most subdued”…
– Tom Howard, The Times
House prices in the north continue to outperform the south
“UK property prices increased between January and February this year, according to the latest house price index from Zoopla.
However, the north-south divide continues to be apparent, with the north of England continuing to demonstrate greater resilience and recovery when it comes to house prices. Demand in lower-priced areas tends to remain strong through economic pressures and higher interest rates, which is likely to be buoying many of these regions”…
– Eleanor Harvey, BuyAssociation
Govt announces ‘major step forward’ for Northern connectivity
“Whitehall has confirmed the route for a £12 billion rail link between Manchester and Liverpool, paving the way for the next stage of development of Northern Powerhouse Rail. The government has signed off on the preferred route for a new rail line between the two cities, confirming it will go through Warrington Bank Quay and Manchester Airport
A further £35 million has also been released, allowing Network Rail to explore options for connections between Liverpool and Leeds, which includes a new station in Bradford”…
– Dan Whelan, Place North West
Stockport set for more improvements and investment
“Aside from the direct investment into the new transport interchange, there are plenty of new projects on the horizon that will continue to improve prospects in Stockport.
The area around the town’s main train station is also undergoing extensive regeneration, including plans to create a new public square along with 60,000 sq ft of office space, boosting options for businesses. This will encompass the potential for shops, cafes, bars and restaurants to this part of the town.”…
– Eleanor Harvey, BuyAssociation
Deloitte to map 10-year Liverpool investment strategy
“Working with Planit, the consultancy giant will advise the city on how to make the most of its development potential and drive the city council’s vision of a “multi-billion pound investment boom”.
The aim of the 10-year investment strategy, which will be launched this summer, is to create a “route map for Liverpool to become one of the UK’s major economic powerhouses”, according to the city council.”…
– Dan Whelan, Place North West
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The 7am Cut 1/4/2024
