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On December 23, Monex Europe analysts noted in a report that the pounds current rally may soon lose momentum due to persistent potential economic headwinds. With a lack of UK economic data and many market participants absent for the Christmas holidays, the pounds movements are more broadly driven by risk appetite. Looking further ahead, forecasts for 2026 include further policy easing by the Bank of England against the backdrop of a cooling UK economy, a factor that should limit the pounds gains in the new year.A Spanish government spokesperson said that the minimum pension will be increased by more than 7% next year.December 23 - According to Econostream, European Central Bank (ECB) Governing Council member Stournaras stated that the ECB is currently in a "good position," but must be prepared to adjust monetary policy settings in either direction as needed. "If the situation at the ECB is better or worse than expected, we will take appropriate action."The Bank of Spain expects fourth-quarter GDP growth to be 0.6%-0.7%, higher than the previous quarter; it also projects GDP growth of 2.9% for fiscal year 2025, higher than the previous forecast of 2.6%. Furthermore, it has revised its 2026 GDP growth forecast upward from 1.8% to 2.2%, and projects 2027 GDP growth of 1.9%, higher than the previous forecast of 1.7%.The Bank of Spain projects inflation at 2.7% in 2025 and 2.1% in 2026 (previously 1.7%). It has lowered its 2027 inflation forecast to 1.9%, from a previous estimate of 2.4%.

High Mortgage Rates Force First-time Buyers to Rent, According to Rightmove

Aria Thomas

Nov 25, 2022 14:27

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The property website Rightmove (OTC:RTMVY) said on Friday that the demand for rental homes in the United Kingdom surged in October as prospective first-time buyers postponed their purchases owing to rising mortgage rates.


However, the total number of renters and purchasers on the market declined by 1% compared to the same period previous year.


In recent months, mortgage rates in the United Kingdom have risen beyond 6%, increasing after the "mini-budget" of former prime minister Liz Truss on September 23 rattled financial markets.


Since then, rates have fallen due to Jeremy Hunt's Autumn Statement, which guaranteed stamp duty reductions through March 31, 2025.


According to Britain's largest property marketplace, first-time buyers have been significantly impacted by the hike, prompting them to consider renting in the near future while they await the inevitable stability of mortgage rates.


Tim Bannister, a property expert at Rightmove, commented, "It is very understandable why some buyers, especially first-time buyers, are waiting for better financial stability."


Now that there are indicators that mortgage rates are stabilizing, it is probable that they will settle at a higher level than buyers in the past have experienced.


42% of prospective first-time buyers who intend to enter the property market over the next several years have already amassed their entire down payment while awaiting a reduction in interest rates. 43% more were engaged in savings.


Tenants are already facing a large increase in expenses owing to the rising costs of electricity, fuel, food, and council tax, which are reflected in the statistics.


As a result of the highest rate of inflation in 41 years, real wages are decreasing, placing incomes under the most severe pressure in decades.

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