UK Economy and Property Market Update

Interest rates cuts are likely to start over the coming months as the inflation trend continues to moderate. This should provide encouragement both for the construction industry and property markets. RICS survey feedback regarding forward-looking indicators of workloads over the next twelve months are already suggesting a broad-based improvement. Similarly, a more positive view of the residential market is visible at this time horizon, even if new buyer enquiries have recently stalled as mortgage rates backed up. The picture for commercial real estate appears a little flatter but sector trends remain particularly divergent.