The global economy will perform better than many expect in 2024, interest rates are lowering and the housing market remains resilient…
| Goldman Sachs Research expects the global economy to outperform expectations in 2024 — just as it did in 2023. That outlook is based on their economists’ prediction for strong income growth (amid cooling inflation and a robust job market), their expectation that rate hikes have already delivered their biggest hits to GDP growth, and their view that manufacturing will recover. Central banks meanwhile will have room to reduce interest rates if they’re concerned about the economy slowing. “This is an important insurance policy against a recession” Goldman Sachs Research Chief Economist Jan Hatzius writes in the team’s report titled Macro Outlook 2024: The Hard Part Is Over. At the start of November, we saw the Bank of England hold decision rates as inflation fell sharply to 4.8 % from a peak of 10.7% at the same time last year resulting in a flood of decreasing mortgage products from large banks. We also saw average house prices rise. These changes show confidence slowly starting to return to the market. LendInvest Mortgages has cut rates across its two, five and seven year landlord mortgages by up to 30 basis points, with rates starting at 3.99%. The home loan platform says the move includes complex buy-to-lets and higher maximum loan sizes for large houses in multiple occupation and multi-unit freehold blocks, which rise to £1.5m. LendInvest commercial director Sophie Mitchell-Charman says: “This week marks a pivotal moment for LendInvest Mortgages, not just in launching this new BTL product range, along with other key updates to our mortgages suite, but also in aligning our efforts with the broader economic landscape. “The Bank of England’s pause on interest rate hikes comes at a crucial time for the UK property market, and our latest offerings are designed to bolster this positive momentum. “This refreshed range, combined with a stabilising financial environment, provides ample ground for landlords to bolster their portfolios.” The average house price increased in November for the second month running by nearly £1,400 month-on-month, according to an index from mortgage provider Halifax. Across the UK, property values jumped for the second month in a row, rising by 0.5 percent in November – equivalent to £1,394, following a price increase of 1.2 percent in October, Halifax stated. As interest rates continue to fall we will see, as we always have done, prices rise so the perfect window of opportunity lies within the next 6 months for the savvy investor. |
