link to ringley website
  • Home
  • About Us
    About us & leadership Awards Savings for Clients Case Studies Green Management Strategies Market Overview Leasehold Reform Campaign Money Back Guarantee
  • Our Services
    • Asset Management
      • UK Asset Management
      • Project Monitoring
      • ESG Consultancy & Implementation
      • PropTech & Living Sectors Platform
      • Marketing Insights
      • Resident Journey
      • Stabilised Assets
      • UK Build to Rent
      • UK Later Living
      • UK Co-Living
      • UK Student Accommodation
      • UK Single Family Housing
    • Block Management
      • Overview - London
      • Overview - Wales & West
      • Overview - Southwest
      • Right to Manage
      • Freehold Management
      • Resident Management
      • Estates of Houses
      • Ground Rent Collection
      • How to change agent?
      • Block Management Services
      • Can't afford an agent?
      • Legal & Tribunals
      • Top 10 Tips
      • Report an incident
    • Commercial Management
    • Law
      • Overview
      • Meet The Team
      • Recommendations
      • Right to Manage
      • Lease Extensions
      • Freehold Purchase
      • Absentee Freeholder
      • Court Appointed Manager
      • Conveyancing - Wales
      • Conveyancing - England
      • Service Charge/Rent Arrears Recovery
      • Company Secretary
    • Property Valuations
      • Overview
      • Loan Security
      • Company Accounts
      • Lease Extensions
      • Freehold Purchase
      • Rent Reviews
      • Ground Rent Investment
      • Development Valuations
      • Expert Witness & Litigation
      • Tax, Trusts & Accounts Valuations
      • Trading Business
      • Compulsory Purchase
      • Residential Valuations
    • Engineering
      • Overview
      • EWS1 Consultancy
      • Asbestos
      • Contract Administration
      • Fire Assesment
      • Homebuyer Survey
      • Building Survey
      • Schedules
      • Party Wall Matters
      • Principle Designer
      • Disability Access Audits
      • Small Building Works
      • Fire Door Inspection
      • Insurance Valuations
    • Property Accounting
      • Finance
      • Quote For Service Charge Accounts?
      • Property Accounting Law
      • Accounting Updates
      • To Audit or Not?
    • Plant & Facilities Management
      • Plant & Facilities Management
      • Fire Door Inspection APP
      • Fire Safety Update
    • Site Staffing Solutions
      • Ringley Integrated Site Staff Solutions
    • Leasehold Guidance
      • Overview
      • Right to Manage
      • Purchasing The Freehold
      • Court Appointed Manager
      • Absentee Freeholder
  • Insights
    Asset Management Articles Block Management Blogs Publications BTR Rental Market Blogs Customer Insights FAQ - Ask Our Experts Insurance Calculator
  • ESG
  • E-books
  • Get In Touch
  •    
  • Work with us
  •  
  • Portal Login
UK Treasury Economist highlights the benefits of lower inflation

Written by: Mary-Anne Bowring 08/08/2024
  9       0
Responsive image

Student special:  inflation explained

A recent explanation by a Treasury economist detailed the positive impacts of lower inflation on the UK economy, businesses, and personal finances.

But first let's consider how inflation is measured and what inflation tells us

Inflation measures the change in prices of goods and services in the economy, and a drop in inflation indicates that prices are rising more slowly. This scenario can enhance the affordability of living costs by increasing an individual's purchasing power. It will allow them to buy more with their money, save more, and enjoy a better quality of life.
Lower inflation supports the economy by maintaining the purchasing power of money. When prices rise slowly, people can plan their budgets more effectively, which helps them ensure proper spending and investment. This is a major factor in fuelling economic growth. For businesses, a stable and predictable environment resulting from lower inflation allows for growth, job creation, and the ability to research and develop new products and services.

And, let’s consider how low inflation benefits companies wanting to export or trade globally

A stable economy with low inflation enhances the UK's competitiveness in the global market. The country will be better placed to attract foreign investment and secure better trade deals. These factors can collectively strengthen the overall economy. Lower inflation has tangible benefits for businesses. It means that the prices of materials used in producing goods and services are not rising steeply, which relieves the pressure on businesses to pass on price increases to their customers.
For instance, a coffee shop would face less frequent hikes in coffee beans, paper cups, or energy costs, allowing it to maintain stable customer prices. This stability empowers businesses to make informed decisions about their future operations. In contrast, high and volatile inflation makes it difficult for businesses to plan for long-term investments and expenditures.

Why mortgage rates are linked to inflation and the Bank of England Base rate

Lower inflation also impacts the mortgage market. Inflation indirectly influences mortgage rates through financial market expectations regarding the Bank of England’s base interest rate. The base interest rate, or Bank Rate, is a key tool the Bank of England uses to control inflation. Mortgage rates are generally priced based on what financial markets anticipate future interest rates. If markets expect higher inflation, they predict an increase in the Bank Rate to cool the economy and bring inflation back to target, which is reflected in higher mortgage rates.
On the flip side, if inflation falls more rapidly than anticipated, it can lead to a decrease in market expectations for the base interest rate, potentially resulting in lower mortgage rates. This situation could make borrowing more affordable for individuals, alleviating the financial burden on homeowners and prospective buyers.

Why a low inflation economy is the Holy Grail

The Treasury economist points out that lower inflation provides various benefits, from enhancing economic stability and business growth to making everyday living costs and borrowing more manageable for individuals.

The Positive Impact of Lower Inflation on Everyday Life and the Economy

Lower inflation not only fosters economic stability but also directly improves the financial situation of individuals and businesses. By reducing price increases, it boosts purchasing power, making goods and services more affordable. For businesses, it enables more predictable planning and helps prevent price hikes, creating a favorable environment for growth and innovation. Furthermore, lower inflation leads to more manageable mortgage rates, making homeownership more accessible. Ultimately, a low inflation economy supports sustainable growth and contributes to a better standard of living for everyone.



Property Management Block Management
POPULAR POSTS

Solar panels on flats - what you need to know

Is noise getting you down?

Ground Rent: Fines for Landlords Who Charge Ground Rent

High Court: Right to Rent does breach human rights

Landlords beware - Don't believe everything you read!

RECENT POSTS

UK Leasehold Reform: Moving Towards Commonhold Ownership

Government to Introduce Single Construction Regulator by 2028 in Response to Grenfell Inquiry

Real Estate Experts Urge House of Lords to Amend Renters Reform Bill

Real Estate Developers Boost Investment in UK Student Accommodation Sector

Changes to Right to Manage Rules Announced Under Leasehold and Freehold Reform Act 2024



Blogs related:

ASSET MANAGEMENT
What is on Ringley's Budget wish list?
New Chancellor Rishi Sunak delivers his first budget tomorrow. Here are the issues that Ringley Group MD Maryanne Bowring is hoping he will address.Tax breaks for those supporting housing provisionRe-zoning for all our ailing high streets and government investment in master planning to promote housing, Planning Development rights and subsidies or business rates linked to turnover (aka turnover rates) to encourage leisure, cafe and restaurant b...

Read


ASSET MANAGEMENT
What is the real cost of a waking watch?
Proof, if any were needed, of the financial burden being shouldered by leaseholders living in buildings with unsafe cladding was published on Friday by the MHCLG. The Government consulted a range of industry bodies to collect data on waking watch costs across a wide range of different buildings and has now revealed the findings.Waking watch is a system whereby residential blocks are patrolled to ensure that, in the event of fire, the residents...

Read


ASSET MANAGEMENT
Ground Rent: Positive News
Good news for leaseholders is a bit thin on the ground at the moment. But the announcement that, finally, some action is being taken on unfair ground rents is cause for celebration.The Competition and Markets Authority confirmed yesterday that Aviva and Persimmon are the first major companies to commit to repairing some of the damage done to homeowners by enforcing contracts that include unfair ground rent terms.Aviva says it will remove the t...

Read


Meet our Expert Property Commentators

Mary-Anne Bowring FTPI FRICS FARLA FCABE Founder/Head of Asset Management

Strategic partnerships, holistic delivery/ opportunities, growth, value engineering, thought leadership

Ian Barber MD BTR Mobilisation & Leasing

Runs HQ & site lease-up teams. Drives rent pricing, mobilisation, marketing, happy residents!

Jon Curtis MRICS Head of Building Engineering

Chartered Building Surveyor. Lectures on EWS1 & building safety. Runs CapEx programmes.

Kate Robinson MTPI MD Blocks/FM Management (London Region)

Master plan setup, ops and staffing and resident engagement. ISO45001 champion.

Lee Harle Partner Ringley Law

Plot conveyancing. Debt litigation. Group Company Secretary.

Anthony Kingdon MIRPM AssocRICS MD Blocks/FM Management (North Region)

Stakeholder engagement. Mixed tenure specialist. Budget management. Plant audit, PPM compliance.

Chris Georgalis MRICS Head of Commercial Valuation

Chartered Valuer. Rental valuations: retail, leisure. IRR modelling and valuations for secured lending. Compulsory purchase & rent reviews

Nichola Pughe MRICS Head of Residential Valuation

Chartered Valuer. Rental development & mixed use valuations, IRR modelling. Leasehold enfranchisement specialist

Natalie Birmingham Helpdesk Support Manager

Trainer & Helpdesk Manager: people, systems,contractors. ISO45001 supply chain accreditation.

Steve Norman Planning Director

Land due diligence (opportunities & constraints) Has contributed to a number of award winning schemes.


inshights shared - link to planetrent blogs

Landlord blog
Read landlord blog
inshights shared - link to ringley blogs

Property blogs
Read property blogs
inshights shared - link to ringley articles

Property articles
Read property articles
inshights shared - link to ringley ebooks

E-books
Read E-books

link to ringley social media facebook link to ringley social media instagram link to ringley social media linkedin link to ringley social media x-twitter
link to ringley social media x-twitter for small device
link to ringley social media linkedin for small device
link to ringley social media instagram for small device
link to ringley social media facebook for small device
  • Ringley Group
  • About us
  • CSR / ESG
  • BusyLiving
  • PlanetRent
  • Talk to us
  • Careers
  • Ask a Question
  • Insights
  • Articles
  • Blogs
  • Subscribe
  • BTR & PRS Buildings
  • What we do
  • Asset Management
  • Block Management
  • Facilities Management
  • Property Law
  • Surveying / Valuation
  • Building Engineering
  • Financial Services
  • Managing Agents
  • Block Management Locations
  • Co-working
  • Renting & Letting
  • Right to Manage
  • Contractor Management
  • Space to Work
  • Fees and Client Money Protections
  • Email: solutions@ringley.co.uk

  • Emergency line 1: 0207 428 2056

  • Emergency line 2: 0207 267 2900

  • Report an incident
  • Our Offices
  • London
  • Ringley House
  • 1 Castle Road
  • London
  • NW1 8PR
  • T: 0207 267 2900
  • London
  • Ringley House
  • 47 Rochester Place
  • London
  • NW1 9JL
  • Manchester
  • 11 Swan Street
  • Northern Quarter
  • Manchester
  • M4 5JJ
  • T: 0330 174 7777
  • Cardiff
  • 122 West Bute Street
  • Cardiff Bay
  • Cardiff
  • CF10 5LJ
  • T: 0330 174 7747
Privacy Policy
Ringley Staff Dashboard
link to ifsm website link to tpi website link to tpos website link to rics website link to ukgbc website link to government security industry authority website link to alep website

All content © copyright 2025. Ringley Limited. All Rights reserved. Ringley Limited, incorporated and registered in England and wales. Registered office: Ringley House, 1 Castle Road, London, NW1 8PR. Company No. 03302438
Terms of use | Privacy Policy | Modern slavery act | COVID-19 risk assessment