Chancellor George Osborne has announced a very welcome stimulus of £80 billion, to combat the effects of the tone of an impending double dip that were hovering over Europe. This very decisive action will most probably put the U.K. economy back on track to Recovery.
Some of the banks have taken the initiative to announce mortgages at low fixed rates for 5 years. Provided the banks actually lend this money to the widest possible customer base, that will ensure stability in the housing market and lift up the low volumes of mortgages processed in the past few months.
If the PM were also to now initiate the much-awaited re-introduction of the Council Right-to-Buy, undoubtedly that would help to lift up the market. People when they become owners instead of tenants normally do up their houses, and whole neighbourhoods become gentrified with the effort and expense people put in. That would boost the painting and decorating sector, house repairs and refurbishments, as well as much needed trade for the paints and wallpaper and tile manufacturers. When neighbourhoods become gentrified, people buy new fridges, washing machines, TVs, DVDs, cars, buy better quality clothes, etc, and the whole circle of cosumer confidence picks up, creating jobs and bringing taxes to the Exchequer. People also start to have confidence to aspire higher, and invest in education, books, cultural activities. The whole tone changes, creating a brighter ambience.
Britain seems in a good positive mood in this Diamond Jubilee Year, ahead of the Olympics. Hopefully this mood will continue, and help the economy grow. With the opening of the Shard Building, London will be a much bigger magnet for wealth in the coming months and years.