Economical. Political and Property Market Update: May 2021

There will be up to date market analysis available soon and will be interesting reading which we will share that detail with you.

In our March Market Update, we shared how property was at an all 10 year high in Glasgow and the UK, http://allianceproperty-group.co.uk/items/news-section/March-2021-Market-and-Property-Price-Update- (click link to open).

That has not changed and the market today remains as buoyant at all levels of the market, with no signs of any let up.

Economic Update:

Things are looking good for the UK.......

The Bank of England forecasts strong COVID recovery with biggest economic bounce-back since WWII.

The Bank signals it is not too concerned about a spike in inflation ahead and its COVID crisis support will be maintained.

The Bank of England has upgraded its growth forecast for the coronavirus-hit UK economy and signalled it will not raise interest rates in the near term - despite seeing a looming spike in inflation ahead.

The latest meeting of the central bank's interest rate-setting committee left policy unchanged, with rates remaining at their COVID-19 crisis low of 0.1% as analysts had widely expected.

Click below and read the full Sky News article.

Sterling also rallied following the conclusion of local and regional elections, hitting a two-month high of $1.413 and €1.163.

Local UK Elections:

These UK elections were for local government MSP’s (Members of Scottish Parliament) as in Scotland case.

In England, it is to decide for councillors and they control local councils.

Just to clarify, UK national elections decide MPs (Members of Parliament), who are central government and based in Westminster in London.

England

In England, the Conservatives, the current UK governing party led by Prime Minister Boris Johnston had a resounding election win in the council elections winning more than 12 overall council control and an additional 200 council seats.

They gained control of some long standing and formidable councils that were Labour strongholds, e.g. Hartlepool.

Scotland

With the SNP narrowly missing out on a majority in Scotland, analysts believe that the risk of another independence referendum has abated.

This has in turn improved the pound's appeal further.

Also just to clarify that most Scottish people voted for pro-Union parties and not independence led parties.

Only 31% of Scots voted for the SNP. 

More voters backed the unionist parties (wish to remain as part of the UK and not in the EU) than backed the separatist ones (want independence from UK and to be part of the EU).

Because of the “first past the post” voting system, the SNP got more seats so appear to have more support than they do.

Here is a map of the Scottish constituencies where the number of Pro-UK votes outnumbered the anti-UK SNP. (SNP yellow: Pro union in blue).

The SNP are the kings of political spin.

They will harp on about independence as that is their mantra.

In conclusion to the political experts, there is no “mandate” for an independence vote.

Summary

Scotland and Glasgow will continue to thrive, be prosperous, welcoming, outward looking and successful economy and the best location in the UK for BTL property investment.

We will continue to bring these unique investment opportunities to you.

Thank you for reading

Alliance Property Group. Here for You. Making a Difference.

Gordon and James