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Will house price recovery kick start the economy?

13:54, 15th January 2024
Justin Waite
Taking Stock

Will house price recovery kick start the economy?

Taking Stock: Monday 15th January 2024

UK house prices creep up as experts predict 'smoother year' for buyers and sellers

Meanwhile, the real estate consultancy Knight Frank has said it now expects house prices to rise by 3% in 2024. As recently as October, the company had been expecting prices to fall by 4% this year.

Average house prices have jumped by about £4,500 this month - but experts are still predicting that 2024 will be a "smoother year" for buyers.

According to Rightmove, the typical asking price for a British property now stands at £359,748, which is 0.7% lower compared with a year ago.

The number of new houses coming onto the market for sale is also 15% higher than this time in 2023 - outpacing the 5% increase in demand from buyers.

Rightmove's director of property science, Tim Bannister, said: "More new sellers are now entering the market, and with more confident pricing.

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In Britain, one third of households are renting. One third have a mortgage on their home. One third own their home outright.

Why is the housing market important to the economy?

The housing market is closely linked to consumer spending. When house prices go up, homeowners become better off and feel more confident. Some people will borrow more against the value of their home, either to spend on goods and services, renovate their house, supplement their pension, or pay off other debt.

Companies mentioned in today's, "Taking Stock"

07:30 Made Tech #MTEC 
07:58 Bushveld Minerals #BMN  
11:35  Polarean Imaging #POLX 
12:08 Audioboom #BOOM 
13:20 Union Jack Oil #UJO 
14:05 Tirupati Graphite #TGR 
14:28 &24:35 Base Resources #BSE 
19:30 Ilika #IKA 
21:20 MJ Gleeson #GLE 
21:35 Taylor Wimpy #TW. 
29:00 Capital Limited #CAPD 
32:58 Ramsdens Holdings #RFX 
35:55 Kefi Gold & Copper #KEFI 


London finance job vacancies slumped nearly 40% in 2023

Job opportunities in London's financial sector plummeted nearly 40% last year, recruiter Morgan McKinley said on Monday, as market turbulence and high inflation led employers to tighten their belts on costs.

Available jobs in finance decreased by 38% in 2023 compared to the prior year, according to the firm's London Employment Monitor, while the number of job seekers also declined 16%.

There was a 42% decrease in jobs available in the fourth quarter of 2023 specifically versus the prior year - the largest such drop since the 2008 global financial crisis, Morgan McKinley said.

(Click here to read more)

Container freight rates to Europe spike to 15-month high as Red Sea attacks continue

Major liner companies have maintained their push on European container freight rates amid ongoing attacks on shipping through the Bab al-Mandab Strait by Yemen-based Houthi rebels, lifting rates to 15-month highs.

Diversions away from the Suez Canal to the Cape of Good Hope route are causing constricted container supply due to additional lead times, blank sailings and potential port congestion. Together with an uptake in demand ahead of the Chinese New Year holidays next month, this is driving increasingly bullish market sentiment in the near term, according to market sources.

According to data from S&P Global Commodities at Sea, the alternative route has increased westbound transit times for Asia-North Europe shipments by 30% and for Asia-West Mediterranean by 60%. As a result of increased fuel consumption and higher bunkering overheads, carriers have been raising charges.

(Click here to read more)


Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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