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UK home costs have posted their strongest yr since 2006, because of excessive demand, the stamp obligation tax break, and a scarcity of houses in the marketplace.
Lender Nationwide has reported that annual home worth progress elevated to 10.4% in December, up from 10.0% in November. That’s the quickest progress in a calendar yr since 2006.
Costs jumped by 1% in December. The worth of a typical UK house has now hit £254,822 for the primary time on Nationwide’s index. That’s a rise of practically £24,000 over the yr; the most important rise seen in a single yr, in money phrases.
Costs are actually 16% greater than earlier than the pandemic struck in early 2020, says Robert Gardner, Nationwide’s chief economist.
“Demand has remained sturdy in current months, regardless of the tip of the stamp obligation vacation on the finish of September.
Mortgage approvals for home buy have continued to run above pre-pandemic ranges, regardless of the surge in exercise seen earlier within the yr. Certainly, within the first 11 months of 2021 the entire variety of property transactions was virtually 30% greater than over the identical interval of 2019.
On the similar time, the inventory of houses in the marketplace has remained extraordinarily low all year long, which has contributed to the sturdy tempo of worth progress.
Separate information from Halifax in a single day has proven that the “race for area” between homebuyers has pushed up costs in some UK cities by a few fifth this yr, with Taunton topping an inventory of areas with the most important will increase.
Additionally arising right this moment
European inventory markets are set for a subdued begin, because the surge in Omicron instances weighs on buyers’ minds.
Yesterday, the UK’s FTSE 100 hit a 22-month high, lastly returning to its ranges earlier than the crash in February 2020 as buying and selling resumed after the Christmas break.
On Wall Avenue, the S&P 500 index hit its seventieth report shut of 2021, as the normal Santa Rally lifted shares.
Naeem Aslam of Avatrade says:
Futures in the US are buying and selling flat, whereas these in Europe are down, and main inventory market indices are on monitor to finish the yr on a excessive observe. Traders are happy that Santa Claus blessed the markets this yr, permitting the Dow and S&P 500 to shut yesterday’s session at all-time highs.
General, buyers are overjoyed that we’re ending 2021 on a excessive observe after a brutal 2020. Though the looks of the Omicron variant initially alarmed buyers, the scenario is now probably below management because of breakthrough COVID-19 vaccinations and a greater understanding of the virus.
Nonetheless, the Federal Reserve’s aggressive tapering of quantitative easing measures to maintain inflation in verify may very well be a significant factor driving volatility in inventory markets in 2022.
The ultimate US weekly jobless claims information of 2021 will present the well being of America’s labour market.
- 7am GMT: Nationwide home worth index for December
- 8am GMT: Spanish inflation information for December
- 1.30pm GMT: US weekly jobless information