Has the feel-good factor arrived? As signs point toward the UK economy entering recovery, albeit with a bit of a limp, we asked John Thornley, Managing Director of Stockport based Fairhurst Estates: “Has the feel good factor arrived”?
“There are many indications that the economy is moving in the right
direction; UK export activity has reached levels not seen since the
financial crisis, UK car output hits 4 year high, UK recovery to gather
pace in 2014. Some forecasters predict UK economic growth of 1.1%
this year, rising to 2.2% next year. Consumer confidence is returning and
the government’s initiatives to stimulate the housing market is bearing
fruit, consumers are switching their attention back from saving to
spending.
“The number of people out of work fell by 57,000 to 2.51 million; the
unemployment rate now stands at 7.8%. Aldermore Bank recently
stated, “Expansion is being led by the Service Sector, even
manufacturing is seeing the brightest outlook for two years.”
Markit, the online financial services organisation have said: “The UK is undergoing a period of solid and increasingly sustainable looking economic growth”.
So how is the Property Market getting on?
“The regions have suffered over the last five years and bank lending has continued to be very difficult for all but the safest of investments but the picture however is now starting to change. As London prices start to overheat, investors are now looking at the regions for acceptable yield growth. So why after 5 years of economic recession do we feel better?
“The government have at last brought out policies that reinvigorate the housing market and the ‘feel good’ factor starts to return; recent announcements on capital expenditure should assist construction activity, especially if consistently applied; the Eurozone crisis has ebbed – we are back to where we were in the early Spring of 2011 when the Eurozone crisis with Greece, Portugal, Ireland and Spain (PIGS) stopped us in our tracks”.
So, according to John, if we can avoid the banana skin of the Eurozone, there seems every chance of ‘UK PLC’ continuing its recovery mode.
Even the sun has been shining on Britain for the longest sustained period since 2006 – all surely adding to the feel good factor and economic confidence.
Fairhurst Estates are a founding member of Marketing Stockport