With a commendable rollout of vaccination behind it, the UK is poised for a strong recovery and economic resurgence in 2021 and the subsequent year. Already we are seeing strong signs of the revitalisation of retail, commercial and housing markets and a willingness to spend amongst adults and households.
The housing market alone, buoyed by generous stamp duty holidays and a spike in demand among buyers, is surging upward at a spectacular rate. With all this going on, however, comes a need for adults to be careful in how they manage their money and obtain the finances they need to secure the purchases they desire as the country returns to normal.
Housing demand continues
Analysts have predicted a spike in housing demand in recent months and, to the surprise of few, this has happened. After a significant and sustained dip in the market from 2016 through to 2019, the market is now spiking upward at a rate of growth that has not been seen in over seven years.
Annual growth has now exceeded 10%, with index gains expected to push further than even that figure. Compared to the previous year in June when growth on a year-on-year scale actually dipped into the negative, it’s a stark and drastic difference.
In addition to strong and sustained demand for housing spurred by the stamp duty holiday is the simple fact that space is limited in the UK. With so much of a small country-restricted for environmental sustainability and preservation, families and professionals who are largely freed from the need to commute are spreading their searches wider than ever before in a bid to find their dream new home.
What this means for consumer finance
At a personal level, this surge in spending interest comes with its own form of danger. Adults who are unprepared financially are liable to spend more than they are able, whether that be on pursuing a property or in acquiring other important life assets such as a new car or a simple holiday abroad once travel corridors reopen.
With the average adult in the UK lacking a safety net or any form of planning and research into what soft search lenders and other means of obtaining finances are available, the enthusiasm of emerging from pandemic life is set to destabilise the personal finances of many.
A measured approach
Because of this, it’s strongly recommended for adults to pause for a moment and step back from sudden plans to spend. As enjoyable as celebratory purchases and large life decisions such as buying property can be, it’s nevertheless vital that adults and households across the country retain a strong financial grounding that supports them through an economic recovery that, although poised to be strong, is still delicate and prone to unevenness.
Financial safety nets, planning for redundancy and worst-case scenarios and a frank and thorough appraisal of income and forecasts for the future must all come together to create a foundation from which any adult in the country can proceed.
Best of health!
Excitement over the future is entirely understandable. We’ve been through a lot and we celebrate every individual in the country for enduring a difficult time – particularly those serving and supporting others in the National Health Service.
Whatever the months ahead are set to bring, we wish the best of health to our readers for the months ahead.