Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
UK economy grows 0.4% in July, ONS figures show
The UK economy expanded by 0.4% in July, according to the latest monthly gross domestic product (GDP) figures from the Office for National Statistics (ONS). The reading follows growth of 0.3% in June, after flat growth in May, a figure that was revised down from 0.1%.
Where the growth came from
The ONS attributed July's growth to monthly rises of 0.4% in services, 0.2% in production and 0.1% in construction. The quarterly picture was more mixed: over the quarter, production output and construction output both fell by 0.5%, while services output expanded by 0.6%.
In the three months to July, real GDP grew by 0.4%, unchanged from the three months to June.
Context: inflation and the next base rate decision
The figures arrive with inflation having risen to 2.9% in July and the Bank of England's Monetary Policy Committee (MPC) due to make its next base rate decision the following week. The ONS data offers some positivity, despite broader uncertainty over whether it indicates a period of sustained growth.
Richard Pike, sales and marketing director at Phoebus, noted that the economy has now grown for two consecutive months, but said the wider picture remains one of continued uncertainty. He pointed out that the mortgage market is still operating against a backdrop of affordability pressures, and that a return to growth should not be mistaken for a return to normality, with lenders needing to remain responsive as different groups of borrowers experience very different financial circumstances.
Pike added that the real test is whether this growth can be sustained, and that a stronger and more stable economy would give borrowers, lenders and the wider property market greater certainty. The focus remains on whether the figures mark the beginning of a more consistent recovery rather than another short-lived improvement.
What this means for letting agents and inventory clerks
For those working in the lettings and property sector, the data suggests a cautiously improving economic backdrop, but one where affordability pressures persist. With the MPC's next base rate decision imminent, agents and clerks should watch for how borrowing costs and market conditions evolve in the coming weeks.
Source: Mortgage Solutions