Economists across the UK have continued to predict that rising inflation could surpass 7% in spring 2022, contributing to the heaviest pressure on UK living standards in decades. Having hit 5.5% in January, inflation could continue to climb further in the coming months with many day to day living costs showing no sign of decreasing.
Suren Thiru, the head of economics at the British Chamber of Commerce said that rising inflation could exacerbate many households existing financial struggles following the fallout of the diminishing Covid pandemic.
The changing energy price cap scheduled for April, along with a planned increase to theNational Insurance rate, which is intended to help fund the current NHS shortfall, is likely to weigh heavy on the UK’s ability to spend much beyond its current models.
Chancellor Rishi Sunak has claimed the government is currently doing what it can to support those families hit the hardest around the UK. One measure currently being rolled out is the governments planned energy top up, which will offer millions of households up to £350 in energy bill contributions. The project aims to disperse a further £20bn over the next 18 months in a bid to backstop the growing squeeze.
How to combat rising inflation
Although rising inflation is a problem facing many UK residents, there are some unique ways to combat this trend. An increasingly popular option is to take advantage of the strong returns made possible through property investment. The right developments can provide investors with a much lower level of volatility in comparison to stocks and shares, whilst standing as a growing tangible asset.
The UK is currently seeing huge demand for residential property investments across the north of England from investors based in London and overseas. This is primarily due lower entry levels in cities such as Manchester, Liverpool, and Leeds.Manchester has seen some of the strongest house price increases seen any where in the UK, with supply still falling far short of demand. The local authority is indicating that the local population is estimated to grow by a further 10%before 2034.
To support this demand, Manchester council have ambitious plans to invest in the surrounding boroughs in a bid to help establish a solid supply of diverse housing options.With projects such as Atom Valley, Manchester’s equivalent to California’sSilicon Valley in the early stages of approval, the sky’s the limit for the city over the coming decade.
For more information on Investing in the North West, speak to a member of the Elavace team today.