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Hello and welcome to the Provide Finance newsletter! Dive into a collection of captivating articles perfect for your downtime, catch up on this week's essential news, and explore the finest content from Provide Finance. Our goal is to inform, entertain, and inspire you. This Week's Highlight: Blockbuster Budget! Read on our site here: https://hubs.la/Q02Xvh8t0

We can't wait to dive into todays announcements over the coming days. Keep your eyes peeled for our assessments and advice!

Speaking at an industry event hosted by the Social Market Foundation, Naushabah Khan, the MP for Gillingham and Rainham, revealed the “huge challenges” facing the rental market. These challenges include the abolishment of so-called no-fault evictions, which can result in landlords being stuck with a tenant who will not leave their property. She said: “We have seen some huge challenges in the private rental sector. “Some of the biggest challenges are people falling out of the private rental sector, not being able to afford the rents, their landlords selling up, and us having nowhere to house people.” She explained that this meant the current housing situation is “spiralling out of control”, and much of this was down to what is happening at a local authority level. She highlighted some of her own constituents who say they have had a no-fault eviction and don’t know what to do. “At the minute, we are not able to get control of the housing situation because this is spiralling out of control at a local authority level. For example, the process around a no-fault eviction is very clunky. The advice we give is to stay in your property until the court order comes through and you are physically removed from the property. At that point, you will trigger a homelessness duty and the council will try to step in and help you. If you do anything before that, you will make yourself intentionally homeless. So the system needs to work better together.” She suggested there needs to be further legislation around dealing with some of these trigger points in the system. Source: Mortgage Advisor Read the rest of this article here: https://hubs.la/Q02RH8cb0

Bailey expects rates to fall ‘gradually' Andrew Bailey, the governor of the Bank of England, has cautioned consumers against expecting a return to near-zero interest rates. He said: “I would not expect that because what caused interest rates to go that way... were two very big shocks to the economy.” While he is optimistic about a gradual decline in rates, he anticipates that the neutral rate will settle around 3% over the next decade. Asked where interest rates would settle, Mr Bailey said he did not expect them to return to the historic lows seen four years ago, and his "best guess" was that it would settle "at a neutral rate." Source: The Guardian

Senior Bank of England official Megan Greene has called for a “cautious, steady as she goes approach” to cutting interest rates, insisting that it is “appropriate to take a gradual approach to removing restrictiveness.” Ms Greene, a member of the Bank’s rate-setting Monetary Policy Committee, has also suggested that concerns around next month’s Budget could be holding back investment and spending, saying: “There’s a lot of uncertainty in the UK. Generally, uncertainty causes businesses and households to wait on the sidelines until some of that is cleared up.” Source Daily Mail

The UK has registered the second highest economic growth among G7 nations, according to analysis by the Organisation for Economic Co-operation and Development (OECD). The economy is expected to grow by 1.1% in 2024, putting the UK alongside Canada and France but behind the US. This marks an increase on the 0.4% growth rate the OECD had predicted in May. The OECD said that economic growth had been "relatively robust" in many countries, including the UK, but noted: “Significant risks remain. Persisting geopolitical and trade tensions could increasingly damage investment and raise import prices." Looking ahead, the UK economy is predicted to grow by 1.2% in 2025, while consumer prices are projected to rise by 2.7% this year and 2.4% next year. Source: BBC News

London experienced a decline in house prices in July, with an annual drop of 0.4% to £521,000, contrasting with a 2.2% increase across the UK, where the average home price reached £290,000. Source: Financial Times

Inflation in the UK remained unchanged at 2.2% in August, according to the Office for National Statistics (ONS), aligning with economists' predictions. However, core inflation increased to 3.6%, up from 3.3% in July. The Bank of England, which recently cut rates for the first time since the pandemic, is expected to proceed cautiously due to ongoing inflationary pressures. With regular pay growth exceeding 5% and unemployment at 4.2%, the labour market remains tight. The Bank's forecasts indicate inflation could rise to just under 3% by year-end as the impact of lower energy prices diminishes. SOURCE: City AM The Daily Telegraph The Guardian The Independent UK

The US Federal Reserve has reduced interest rates by 50 basis points, marking the first cut since 2020, with the federal funds rate now between 4.5-5.0%. The Fed stated: “The economic outlook is uncertain, and the committee is attentive to the risks to both sides of its dual mandate,” highlighting its commitment to employment and inflation targets. The decision followed a jobs report indicating rising unemployment and slowing job growth, raising concerns about a potential economic downturn. Officials predict the unemployment rate could rise to 4.4% by year-end, while inflation has decreased to 2.5%, its lowest since February 2021. The Fed's move comes just before the Bank of England's interest rate announcement, with expectations of rates remaining unchanged. Source: Financial Times Reuters City AM

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