Coronavirus Update: UK Borrowing Surges
22/05/2020 Coronavirus Daily Update
UK borrowing surges as coronavirus schemes rack up
Government borrowing reached a monthly record high in April – borrowing surged to £62.1bn, a massive £51.1bn more than in April the year before. This has resulted in the highest level in the ratio of UK’s debt to national income in 57 years. It has been estimated that the schemes introduced by Chancellor Rishi Sunak are set to cost the UK £300bn this year.
Record monthly fall in sales
Jonathan Athow, deputy national statistician for economic statistics at Office of National Statistics (ONS), said: “The effects of Covid-19 have contributed to a record monthly fall in retail sales of nearly a fifth. Fuel and clothing sales fell significantly while spending on food also dropped after the surge from the panic buying seen last month. Off-licence sales, however, continued to increase. Online shopping has again surged as people purchased goods from their homes.”
UK sold negative yield bonds for the first time
In an unprecedented move, the UK government issued £3.8bn of three-year gilts at a yield of minus 0.003%. This means that investors will be paid less than what they have invested. There is now growing expectation that the Bank of England will increase their quantitative easing bond purchasing programme of £200bn next month to push inflation rates back up to the target of 2%.
Bank of England considers negative interest rates
Policymakers are facing questions whether interest rates would go sub-zero to help the UK economy mitigate the damage of COVID-19. It is a move that may have drastic consequences but hold advantages for some. For instance, savers would be penalised, but homeowners would benefit.
UK mortgage payment holiday extended by three months
Homeowners were given another lifeline as the government announced a three month extension to its mortgage payment holiday scheme and the ban on home repossessions. It was reported that over 1.8m homeowners have taken up mortgage payment holidays when it was first announced in March. Application deadlines have also been pushed back to the end of October.
What does it mean for you?
Industry experts have remained pessimistic on the property market as the lockdown eases in England. If you have been planning to, or have been pondering to, sell your property, it may be better to consider selling now to avoid further drop in property prices. With the lockdown measures lifted, Auction Agent will be conducting both physical viewings and virtual viewings for interested bidders. We have taken measures to ensure that health guidelines are adhered to at all times during physical viewings.
Why use Auction Agent?
With our exchanges guaranteed to complete anywhere from 1 to 28 days from the fall of the hammer, Auction Agent property auctioneers will ensure that your property would be sold as quickly as possible and without the worry of buyers dropping out. Our seller’s package includes marketing on leading online property portals (Rightmove, Zoopla, and PrimeLocation) and social media platforms (Facebook, Twitter, and LinkedIn).
Auction Agent property auction house has over 50 years of combined experience – we are ready to answer any of your questions regarding buying, selling, or just regarding property auctions in general. Auction Agent house auctioneers offer complete services for buyers, sellers and even probate property owners. Furthermore, Auction Agent property auction house gives all sellers a peace of mind with our no-sale-no-fee approach.
Take your first step to a stress-free property sale today by contacting us for a free property valuation. Be sure to sign up for our newsletter for the most up-to-date properties available from our property auction portfolio.
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