According to Nationwide’s latest house price index, annual house price growth was strong in November at 10%, a figure that slightly exceeds the 9.9% recorded in October. Month-on-month, prices were up 0.9%, taking into account seasonal effects.

While in October the average house price in the UK sat at $250,311, this figure rose to £252,687 in November. 

So far in 2021, the number of housing transactions has already exceeded the number recorded in 2020. The number of mortgage approvals in October sat above the monthly average for 2019. However, there have already been signs of activity in the housing market slowing again. In October, for example, the number of property transactions was down nearly 30% year-on-year.  

It also remains unclear what impact the Omicron variant will have on the country’s economy. Although November saw consumer confidence stabilise, sentiment is still significantly below the levels seen throughout the summer.

The latest service sector survey by the Confederation of British Industry (CBI) shows that sentiment for business and professional, and consumer services companies improved in the quarter. Nonetheless, this increase was at a reduced pace than the three months before. 

In the three months to November, business volumes grew at a steady pace across the service sector, according to the CBI’s findings. However, there were some signs of slowing growth as companies expect volume growth to ease off in the next quarter. 

During the three months, cost pressures also increased. Both consumer services and business professional services saw costs rise at their quickest pace since the surveys began in 1998. 

Companies in each of the sectors now expect the pace to increase further still to 70% in the next quarter, marking the strongest expectations on record. 

Profitability saw the strongest growth since February 2018, despite rocketing costs. With these rocketing costs expected to continue into the next quarter, it is predicted in both consumer services and business and professional services that profits growth will stall in the three months to February. 

With recent news that the pound took a tumble over the weekend, partly attributed to the future of Theresa May as Prime Minister and the upcoming EU summit, rumours that China is looking to open its finance sector up to more foreign ownership, and updates on the latest trade announcement being teased by US President Trump after he pretty much told Japan they ‘will be the no.2 economy’ here are some comments from expert sources on trade worldwide.

Rebecca O’Keefe, Head of Investing at interactive investor, told Finance Monthly: “European markets have opened relatively flat, with the FTSE 100 the main beneficiary after sterling’s latest fall, as pressure mounts on Theresa May who is struggling to maintain her grip on power. The gravity defying US market has been the driving force behind surging global markets, so investors will be hoping that the Republicans can get their act together and deliver key US tax reform to help support the path of growth.

In sharp contrast to Persimmon’s lacklustre results and a gloomy report from the RICS last week, Taylor Wimpey’s trading update is much stronger and paints a relatively rosy picture of the current housing market. Confirmation of favourable market conditions and high demand for new houses is good, although there are early warning signs that the situation might deteriorate, with slowing sales rates and a drop in its order book. Share prices have already come off recent highs, amid fears that the sector had got ahead of itself and investors will be hoping for more help from the Chancellor in next week’s budget to try and provide a new catalyst for the sector.

Gambling companies have been making out like one armed bandits since the summer, as expectations grow that the Government will compromise on a much higher figure for fixed odds betting terminals than the £2 maximum suggested during this year’s election campaign. However, while betting shops are the focus of attention for politicians, the real action can be found on smartphones and elsewhere – with surging revenues and profits being driven from online betting. Companies who have got their online strategy right are the significant winners and although Ladbrokes Coral has seen a 12% jump in digital revenues, the comparison against online competitors such as bet365 and Sky Bet, who both reported huge revenue growth last week, has left the market slightly disappointed and sent the share price lower.”

Mihir Kapadia, CEO and Founder of Sun Global Investments, had this to say: “The last couple of days have seen two of the big global economies China and Germany report large trade surpluses underlining their robust performance over the year. In contrast, the UK economy has been on a downbeat weakening trend as Brexit and political uncertainties lead to declining economic confidence and slower growth.

Data released last month showed August’s trade deficit at £5.6 billion, and in comparison, today’s data of £3.45 billion for September has been a better than expected improvement, but nevertheless indicative of an additive gap that appears unlikely to be closed anytime soon.

While Brexit uncertainty has weakened the pound against its major peers, it had helped boost exports but in turn has also made imports more expensive. This is the short term “J Curve” effect which is often seen after a devaluation.  Over the long term, the weaker pound is perhaps likely to help the trade deficit as exports rise (due to the lower pound and higher growth in the global economy) while import growth slows down due to the slowdown in the UK.”