ECONOMISTS PREDICT FALLING RATES BUT COST OF LIVING TO REMAIN A CHALLENGE IN 2024

The Bank of England is poised to cut interest rates at least twice in 2024, according to economists polled by The Times. 45 per cent of respondents predicted that the Bank would lower rates three times or more. More than 80 per cent of respondents also said that the economy would expand between zero and one per cent this year. 

Meanwhile, economists surveyed by the Financial Times said that UK voters will enjoy higher wages but continue to struggle with mortgages and rents ahead of the next election. A majority of 90 per cent of respondents said that, despite falling inflation, voters would feel little improvement in their living standards.  

NUMBER OF FIRST-TIME BUYERS LOWEST IN A DECADE 

The number of first-time buyers who bought a home with a mortgage fell to the lowest level in a decade in 2023, according to analysis of UK Finance data by Yorkshire Building Society (The Guardian). The lender estimated that there were 290,000 first-time buyers last year, down a fifth compared to 2022.  

Meanwhile, house prices are on track for their longest stretch of improving affordability in more than two decades, according to Bloomberg. This is due to forecasts for rising wage growth and stagnation, or even a decline, in house prices this year. 

NEWS IN BRIEF

A £94 increase to the average annual household energy bill came into effect yesterday as the regulator increased its price cap (The Guardian). 

Working parents in England can start applying for 15 hours of funded childcare for their two-year-olds from today (BBC News). 

Shop price rises are at risk of accelerating this year, industry bosses have warned, as retailers are set to be hit by higher costs (The Telegraph). 

Chancellor Jeremy Hunt will deliver the 2024 Spring Budget on 6 March, the Treasury confirmed last week (BBC News).