How is the economy standing so strong?

28th October 2020

By Will Leyland

And yet, that hasn’t come to pass here in the UK so far. It’s difficult to scroll just about any news feed either online, on social media or on your devices without feeling moments away from a depressing news story, but that doesn’t tell the whole story.

It’s meaningless to invoke the cliché that bad news sells, but it’s perhaps at least more noticeable at a time when it feels like good news is increasingly hard to come by.

Exemplified this week by the local leadership in Manchester, communities all around the country are pulling together to find increasingly innovative and effective ways to protect and enhance their local economies at such a challenging time.

As large swathes of the north of England and much of Scotland were placed under further restrictions, many local mayors, council leaders and others announced ways in which they would protect jobs, businesses and otherwise booming economies.

Aside from the obvious uplifting Marcus Rashford story, there was some other encouraging economic news to draw our focus away from the negatives.

Sales increasing

As reported by the BBC last week, retail sales have increased for the 5th month in a row, providing some welcome positive news for retailers and the wider economy.

Statistics released by the Office of National Statistics (ONS) show an impressive increase in economic activity since the strongest restrictions were lifted back in May.

According to the BBC article, “Sales are now 5.5% higher than the pre-pandemic levels seen in February. The three months to September saw the biggest quarterly increase on record, as retail sales volumes increased by 17.4% when compared with the previous three months.”

“There’s no doubting that UK consumers have been doing their bit to boost the economy, following a quarter of record retail sales growth,” said Lynda Petherick, head of retail at Accenture UKI.

Strong Property Performance

As we know, property performance across the UK has also been very strong during the same time frame, so the two sets of figures have come as welcome relief in otherwise tumultuous times.

With the government also gearing up for Brexit in January, investors from all across Europe and the world have been paying attention and there is anecdotal evidence that areas of focus such as Manchester, Leeds, Newcastle and Nottingham are performing even stronger in this area than before the pandemic.

It’s perhaps not going to be a winter to live in the memory for many reasons, but it must be said that there are definitely reasons for optimism and, in fact, there is strong evidence to suggest that the economy and the property market could yet emerge from these challenging times even stronger than at the start.

The government have announced a raft of support measures as well as new policies such as a break in stamp duty and other taxes and plans to provide new buyers with better mortgages. With all of this in mind we can approach 2021 with some cautious optimism.

Looking to make your next investment in buy to let? Take a look at our latest opportunities!

Did you find this article helpful?

Our most recent articles

How is the economy standing so strong?

28 October 2020

And yet, that hasn’t come to pass here in the UK so far. It’s difficult to scroll just about any news feed either online, on social media or on your devices without feeling moments away from a depressing news story, but that doesn’t tell the whole story.

It’s meaningless to invoke the cliché that bad news sells, but it’s perhaps at least more noticeable at a time when it feels like good news is increasingly hard to come by.

Exemplified this week by the local leadership in Manchester, communities all around the country are pulling together to find increasingly innovative and effective ways to protect and enhance their local economies at such a challenging time.

As large swathes of the north of England and much of Scotland were placed under further restrictions, many local mayors, council leaders and others announced ways in which they would protect jobs, businesses and otherwise booming economies.

Aside from the obvious uplifting Marcus Rashford story, there was some other encouraging economic news to draw our focus away from the negatives.

Sales increasing

As reported by the BBC last week, retail sales have increased for the 5th month in a row, providing some welcome positive news for retailers and the wider economy.

Statistics released by the Office of National Statistics (ONS) show an impressive increase in economic activity since the strongest restrictions were lifted back in May.

According to the BBC article, “Sales are now 5.5% higher than the pre-pandemic levels seen in February. The three months to September saw the biggest quarterly increase on record, as retail sales volumes increased by 17.4% when compared with the previous three months.”

“There’s no doubting that UK consumers have been doing their bit to boost the economy, following a quarter of record retail sales growth,” said Lynda Petherick, head of retail at Accenture UKI.

Strong Property Performance

As we know, property performance across the UK has also been very strong during the same time frame, so the two sets of figures have come as welcome relief in otherwise tumultuous times.

With the government also gearing up for Brexit in January, investors from all across Europe and the world have been paying attention and there is anecdotal evidence that areas of focus such as Manchester, Leeds, Newcastle and Nottingham are performing even stronger in this area than before the pandemic.

It’s perhaps not going to be a winter to live in the memory for many reasons, but it must be said that there are definitely reasons for optimism and, in fact, there is strong evidence to suggest that the economy and the property market could yet emerge from these challenging times even stronger than at the start.

The government have announced a raft of support measures as well as new policies such as a break in stamp duty and other taxes and plans to provide new buyers with better mortgages. With all of this in mind we can approach 2021 with some cautious optimism.

Looking to make your next investment in buy to let? Take a look at our latest opportunities!

Will Leyland

Did you find this article helpful?


Our most recent articles