Senior figures from the built environment sector comment on the latest UK inflation figures and worse than expected Labour Market Statistics from the Office of National Statistics as the IMF downgrades the country’s economic growth forecast.

Inflation

When the Bank of England meets in May, we may see them begin to have the confidence to gradually cut interest rates in order to stimulate activity on the housing market

Nathan Emerson, CEO of Propertymark, comments: “It is encouraging to see that inflation is starting to decline towards the same levels it was at prior to the Covid-19 pandemic. People will be relieved to start experiencing some normality again without fearing that prices will rise at almost unaffordable levels.

“When the Bank of England meets in May, we may see them begin to have the confidence to gradually cut interest rates in order to stimulate activity on the housing market during spring, traditionally one of the busiest times of the year for the housing market, especially when Propertymark’s own Housing Insight Report found that there has been an 18 per cent increase in new properties coming to the market. already” 

Daniel Austin, CEO and co-founder at ASK Partners, says: “Decreasing inflation suggests that the Bank of England is likely to maintain interest rates for an extended period, particularly considering the signs of economic recovery we’ve witnessed. This all points to a positive domestic story of an economy exiting a mild recession but does mean that pressure will remain on those servicing debt and with ongoing global market uncertainty surrounding the Middle East crisis, the coming months are set to be shaky.

“In the real estate sector and as property loan extensions expire, borrowers will face the choice of injecting fresh capital, returning assets to lenders, or selling in a soft market. The assets hitting the market will kickstart the cycle and offer opportunities for capital-endowed buyers, who view this as an opportune moment to acquire assets at significant discounts.”

Sam Martin, CEO of Peckwater Brands, says: “All entrepreneurs will welcome today’s drop with open arms. Businesses have been grappling with rising costs for too long and a more stable economic environment means a better playing field for startups.

In order for British businesses to innovate and expand their ventures, we need greater investment into startups

“Nothing about the past two years has been easy for UK startups – the high-inflation, high-interest landscape has led to decreased consumer activity, stagnant investment, and a general lack of momentum across almost all sectors. Every time I hear inflation has fallen even a fraction of a percent, it’s music to my ears.

“In order for British businesses to innovate and expand their ventures, we need greater investment into startups and into scaling our enterprises, and inflation falling should be conducive to increasing investor interest in our best and brightest – especially if that decline is coupled with falling interest rates in the near future.”

Labour Market

[T]he UK needs a National Wellbeing Strategy

On Labour Market Statistics showing levels of economic inactivity in the UK are at their highest since 2015, Mike Robinson, Chief Executive of British Safety Council, says:

“The number of people classed as economically inactive has remained stubbornly high since the pandemic but today’s figures show levels at their highest since 2015. This is being driven by too many people unable to work due to sickness or ill health, among other issues. This is why the UK needs a National Wellbeing Strategy and we want the next Government to appoint a Minister for Wellbeing to help bring real focus to this problem and put health, safety and wellbeing at the heart of our economic growth policy.”