The recent divergence between modest house price growth and surging rents poses a complex decision for many: is it better to continue renting or to buy a home? Understanding the underlying economic concept of Opportunity Cost can help clarify this choice. Opportunity Cost is the value of the next best alternative forgone when making a decision. In […]
Flooding
Recent warnings from the Met Office regarding heavy rainfall and potential flooding highlight the immediate disruption caused by adverse weather. However, the economic consequences of flooding extend far beyond delays and damaged property, with significant financial implications for households, the property market, and the insurance industry. One of the most notable impacts of flood risk […]
Energy Price Cap
As gas and electricity prices rise by 10% in England, Scotland, and Wales from October, many households are feeling the pressure. With the new energy price cap in place, the typical annual dual-fuel bill will increase to £1,717, leaving many wondering how to manage the rising costs. Adding to the strain, the government has announced […]
The Ofsted Grading System
In September, Ofsted made a significant move by scrapping the controversial single-word inspection grades, a decision met with praise for recognizing the need for more nuanced assessments. While Ofsted’s ratings remain critical for gauging school performance, the economic consequences of these evaluations extend far beyond the classroom Impact on Property Prices It is well-known that […]
Bank Rate Held at 5%
At its latest meeting, the Monetary Policy Committee (MPC) chose to hold the Bank Rate steady at 5%. While inflation has retreated towards the Bank’s target levels, economic growth has stalled, and key sectors are exhibiting signs of weakness. Given these developments, it is worth examining whether maintaining the current interest rate is the optimal […]
How Housing and Planning Influence Economic Growth
Prof. Paul Cheshire