Property continues to be the safe haven for many looking to tackle ever-growing living costs, with essential items increasing in price with the passing of every week.
Ofgem has already claimed that bills for a typical household could increase to around to around £1,971 for a typical household from April, representing a 54% increase.
Fuel prices toohave seen a significant increase in price during the first three months of 2022 with no signs of slowing. MPs project that petrol could rocket up to £2.50 a litre and diesel could even hit as much as £3. Head of oil and gas research at Investec bank said that consumers must be ready for a continued rise in fuel prices. Another perspective from another oil analyst at Energy Aspects Dr Amrita Sen, said that oil could easily climb by as much as 50% further. Both form a gloomy outlook on the situation unfolding not just in the UK but across the globe.
Overall, the UK economy was projected to grow by as much as 6% in October, but now with the Russian invasion of Ukraine that figure is now expected to be closer to around 3.8%.
A Response from the government?
The government has failed in its effort to address this hit to living standards, with commentators claiming the response to this increase in living costs and predicted relapse in living standards has been underestimated resulting in a more knee-jerk reaction from global powers. Poor political choices have left the climbing cost of living and hit to living standards relatively unaddressed and those most vulnerable significantly worse off. As a result, the living standards within the UK are not set to recover to their pre-pandemic levels until at least 2024-25.
Potential methods to combat the uncertainty
As disposable income decreases, it is important to make the most of what money you have and try to make it go further. Investing can be one of the most effective methods for increasing capital in a lower volatility environment in comparison to other current options. One lower volatility option is property investment, creating a form of added income after the investment, it acts as a tangible asset for investors and capital growth of potential areas in the future is still climbing. The UK is currently one of the most in-demand countries in the world for property investment with it's low entry levels and strong NET returns. Cities such as Manchester and Liverpool are a testament to this growing trend for investment. Manchester alone is projected to see a population increase of up to 56,000 by 2034, proving that the pressure for living space and property is only going to increase, therefore creating great opportunities for those looking to take advantage of the UK buy-to-let market.
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