Panthera Consultancy Weekly Newsletter
Welcome to Your Panthera Consultancy Weekly Newsletter!
In this week’s edition, we bring you the latest insights: UK inflation sees its first rise in 2024, Britain’s economy continues to grow, and a notable decrease in unemployment alongside a slowdown in wage growth. We also cover developments in the real estate market, international economic trends, and the latest updates from the banking and financial services sectors. As always, our newsletter aims to keep you informed and ahead of your business needs.
Staying informed on these developments ensures you’re prepared for the financial landscape ahead. If you know others who could benefit from this newsletter, share it with them and tell them to email ‘join’ to info@pantheraconsultancy.com.
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Phone: 0208 132 6872
Now to the updates:
ECONOMY
Inflation rises to 2.2%
Data from the Office for National Statistics (ONS) shows that UK inflation rose to 2.2% in July, marking the first increase this year. The Bank of England expects inflation to climb to 2.75% in the coming months before dropping below its 2% target next year. While this uptick in inflation is seen as moderate, it may influence policymakers to hold off on further interest rate cuts in the near term.
Britain’s economy grows for second consecutive quarter
The UK economy grew by 0.6% in the second quarter, continuing its recovery with a second consecutive quarter of growth. This is supported by strong performance in the service sector, particularly in scientific research, IT, and legal services. The continued growth has sparked political debate, with opposition figures criticizing recent tax hikes, arguing they are unnecessary given the positive economic data.
Unemployment falls and wage growth slows
Unemployment in the UK dropped to 4.2% in the three months to June, while wage growth also slowed, with regular pay growth easing to 5.4% year-on-year. Although wage growth remains high, its slowdown may prompt the Bank of England to consider reducing interest rates later this year.
REAL ESTATE
Bank of Mum and Dad helps first-time buyers with £9.4bn
The Bank of Mum and Dad contributed £9.4bn to first-time buyers in 2023, nearly doubling the support from five years ago. With the Help to Buy scheme no longer available, family assistance is becoming increasingly vital for new homeowners, with predictions suggesting this trend will continue.
One in three delay buying new home
Financial pressures, including high interest rates and rising living costs, have led one in three prospective buyers to delay purchasing a home. The average house price has now risen to eight times the average salary, further straining affordability for many.
First-time buyers face stamp duty increase due to delays
First-time buyers could face higher costs if they miss the deadline before the stamp duty threshold falls in April 2025. Those looking to take advantage of the current exemption for homes worth up to £425,000 must act quickly to avoid paying thousands more in stamp duty next year.
INTERNATIONAL
US inflation dips to three-year low
US inflation slowed to 2.9% in July, the lowest rate since March 2021. Despite remaining above the Federal Reserve’s 2% target, the decline strengthens the case for a potential rate cut in the coming months, with many analysts predicting a reduction as early as September.
BANKING
New mortgage rates announced with best buy for first-time buyers
Several UK banks and building societies have introduced new mortgage rates, with NatWest offering a market-leading five-year fixed rate of 4.68% for first-time buyers. Other major lenders, including Virgin Money, Santander, and Leeds Building Society, have also announced rate cuts, providing more options for borrowers in an increasingly competitive market.
Bank of England rate cut boosts lending market
The Bank of England’s recent rate cut is encouraging growth in the lending market, particularly in the buy-to-let sector. Lenders report increased confidence and activity, signalling a potential recovery following recent challenges.
HSBC vows not to close branches until 2026
HSBC has committed to keeping its remaining branches open until at least 2026, addressing concerns over access to cash and in-person banking services. This comes as other major banks continue to close branches across the UK, affecting millions of customers.
FINANCIAL SERVICES
Chancellor pushing regulators to promote growth
Chancellor Rachel Reeves is urging financial services regulators to support the growth of the City of London by focusing on international competitiveness and long-term economic growth. The government plans to review and streamline financial regulations to ensure the UK remains a leading global financial hub.
RETAIL
Food inflation rises for the first time in 17 months
Food inflation has increased for the first time since March 2023, with grocery prices up 1.8% in the four weeks to 4 August. While overall inflation remains lower than last year, this uptick highlights ongoing challenges in controlling food prices. Meanwhile, Tesco has gained market share, while Asda has seen a decline.
LEISURE & HOSPITALITY
Riot fears saw 10% drop in sales
Hospitality sales fell by 10% last week due to fears of potential riots, with some areas seeing a 40% drop in revenue. The significant decline in footfall underscores the impact of public safety concerns on the leisure and hospitality sectors.
HEALTHCARE
AstraZeneca tipped to become Britain’s first £200bn company
AstraZeneca is on track to become Britain’s first £200bn company, driven by strong business momentum and a robust pipeline of new drugs. Analysts have raised their forecasts, reflecting the company’s significant growth potential.
OTHER
European Investors eye Britain
The London stock market has become the top choice for European investors, with increasing numbers planning to buy UK-listed shares. This shift in sentiment highlights growing confidence in the UK market, despite ongoing uncertainties in the eurozone.
CLOSING THOUGHTS
As always, we thank you for being an avid reader of the Panthera Consultancy Weekly Newsletter and for trusting us to provide you with these essential financial updates. Beyond news, we are here to support your business in navigating the financial landscape, whether through securing financing or optimizing your financial strategy.
If you’re looking to elevate your business or need advice on securing the best financial deals, get in touch today. Let us help you achieve your financial goals and ensure your business remains resilient in the ever-changing economic environment.
Until next week, Stay Informed & Stay Ahead.
With my kindest regards,
Benjamin Vis
Managing Director – Head of Business Lending
Landline: 0208 132 6872
Mobile: 07933 145 994