The UK economy has shown unexpected resilience in the face of rising interest rates and inflation. Agreed, the economy fell into a recession in the second half of last year, but so far, a very mild one.
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The high unemployment, financial stress and big company corporate failures that looked possible a couple of years ago have not materialised.
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The housing market has also held up, confounding expectations of sharply lower house prices.
The last time I wrote about house prices was in November 2022, in the aftermath of Kwasi Kwarteng’s ill-fated mini-budget. At that time I forecast a 15 per cent decline in house prices.
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Source: Reaction