National property auctioneer Auction House welcomes the stability of fiscal policy but awaits the full impact of the latest global conflict.
Today’s Spring Forecast contained no big surprises, fulfilling the pledge the Chancellor made at the Autumn Budget to stick to one major fiscal event a year. However, the impact of the US-Israeli war, which has already seen gas and oil prices rocket, has yet to be analysed and could test the Chancellor’s economic plan over the coming months.
Commenting on the forecast, Oliver Prior, Managing Director of Auction House, said: “The deliverance of a low-key forecast with no dramatic changes to fiscal policy provides the property market with much-needed stability. However, we must now adopt a ‘wait-and-see’ approach when it comes to the impact of recent global events.”
A snapshot of progress
In the forecast, the Chancellor discussed the data collected before the onset of the US-Israeli war.
While rising unemployment, particularly among young people, is a growing concern, and economic growth remains weak, the statement showed some cause for positivity. Wages continue to pick up, and the government’s dramatic tax overhaul has resulted in an uplift in tax receipts – at least for the time being – to create a budget surplus. Inflation also fell to 3% in January.
“Before global events overtook government forecasts, these results, combined with an expected drop in base rate in the coming weeks, would have given the property market a much surer footing in the months to come,” said Oliver. “Nevertheless, this forecast has prevented any further shocks, which can only shore-up the strength of the market.
“While rising gas and oil prices could push up inflation once again and put off a base rate cut, the property market has proven its resilience in recent years. Once we fully understand the impact of the recent war, the market will be able to forge a new path and rebuild its foundations for growth.”
About Auction House
We are a national brand with a local presence. We operate across England, Wales, Scotland and Northern Ireland, holding close to 200 online, livestream and in-room auctions every year.
Despite being a nationwide brand, we pride ourselves on maintaining a regional presence. With local, knowledgeable teams, we offer a truly personalised service to sellers, buyers and partners alike.
