UK Mortgage Lenders Dodge the Budget Logjam
A smoothly received fiscal plan could give Britain’s housing market a boost. The alternative is grim.
A construction site in Leeds.
Photographer: Christopher Furlong/Getty Images EuropeNothing will short circuit Prime Minister Keir Starmer’s growth agenda more quickly than a budget next week that snuffs out the green shoots of the housing market.
The Bank of England has been understandably dragging its heels until it gets the measure of the new Labour government's fiscal agenda. But it doesn't help that there’s been mixed messaging from the Monetary Policy Committee. Governor Andrew Bailey emphasized in a Guardian article this month that the central bank could become a “bit more aggressive” on lowering borrowing costs. But MPC member Megan Greene on Monday warned that reduced rates may discourage household savings.