‘Rebound Rishi’ has created a short term sugar rush for the housing market in the same way that Eat Out to Help Out has made the sound of tills ringing and credit cards clattering a relief for cafes and restaurants, packed with diners soaking up the summer holiday atmosphere.
Many sellers and buyers had put their lives on hold last year during Brexit (remember that?) and the real threat of a change in Government. These latest figures are, in my opinion, front end loaded and when annualised will later disappoint those with more optimism about house price forecasts, consumer confidence and their effect on a higher rate of economic growth for the UK.
Yesterday’s 4 am deadline, break for the border dash back to the UK to avoid 14 days of quarantine would not only have cut short people’s deserved holidays but would also have been a very early and unwanted wake up call reminder for some with tough corporate decisions to take as furloughing soon comes to its end.
The government must start showing more sustainable policy in assisting companies with getting their employees back to work. Whilst making great print headlines, short term boosts to the economy, and their effects, will wear off and the country’s blood sugar levels will start returning to normal in the autumn.
Duncan MacLaren
LinkedIn | August 2020
