Posted on Monday, June 13, 2022
- Before the £15bn support package was announced in May, the cost-of-living crisis seemed very likely to dent confidence in the housing market.
- Real disposable household income is a good measure of the cost of living. It tracks the impact on average incomes of changes in inflation, tax and benefits.
- Inflation soared as economies reopened after Covid, alongside supply chain disruption and a global energy crunch exaggerated by the war in Ukraine.
- The £15bn alleviation measures will help offset the increase in energy costs with less well-off households helped most.
- Clearly, other cost pressures remain, but this assistance should help limit the negative impact on the economy and the housing market. Source: Dataloft, HM Treasury Consensus Forecasts May 2022
