Strong economic forecasts over the next five years for the country of growth between 2.3% and 2.5% are expected and are being driven in a healthy way via business investment and a growth in exports, not just consumer spending.
It’s estimated another one million jobs will be created over the next five years and even more good news is that job growth is already reaching areas outside of London such as the Midlands (3x rate of elsewhere) and the Northern Powerhouse, spreading the wealth across the country.
The news on tax credits not being cut is good news for the many private renters on housing benefits who are in the PRS because successive governments haven’t and don’t seem to want to, provide social housing anymore.
This growth is set to continue despite the economic cuts (mostly to the running of government administrative parties) and headwinds of a weak Eurozone and world economy.
From a housing perspective, all of this is good news as a strong economy normally results in higher wages and consumer confidence. Both of these helps to drive a healthy housing market where people can move more easily. However, the government and the industry needs to make sure this doesn’t cause house prices to go up too fast and furious or, as we know, they are likely to come down again with a bang.
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