Falling inflation could boost the housing market – but there’s a catch
The Bank of England's interest rate hikes, aimed at reducing inflation, have led to a slowdown in the UK housing market. Recent data reveals a significant drop in house prices, the largest since October 2011. This decline, most pronounced in London, reflects the impact of pandemic-driven price surges. Despite this decrease, the housing market faces long-term challenges. Interest rates have risen, functioning slowly like drip filter coffee, and have a delayed effect on the market. This delay is due to the time taken for banks to adjust mortgage rates and for these changes to be reflected in official statistics. The latest data from the Office for National Statistics (ONS) show a 1.2% drop in house prices over a year, marking the fastest decline in over a decade. Financial markets anticipate rate cuts next year, which could revive the market. However, the overall cost of living remains high, with increased expenses from food to household bills. Over a million people will face higher mortgage costs next year.
Mordaunt says Boris’s messages vanished from her phone
Penny Mordaunt, a UK cabinet minister, has revealed that her WhatsApp conversations with former Prime Minister Boris Johnson, relating to Covid, were mysteriously deleted from her phone. She provided this information in her evidence to the Covid inquiry, and mentioned that the former chief of staff at No 10, Dan Rosenfield, did not respond to 14 requests for a meeting to discuss the missing communications. This adds pressure on Johnson, who previously informed the inquiry that around 5,000 messages from his old phone, covering January to June 2020, could not be accessed. His lawyers suggested an automatic factory reset of the phone might be the cause. Mordaunt expressed willingness to have her phone examined by the inquiry if it would help. Johnson himself speculated at the inquiry that the disappearance might be due to the WhatsApp app malfunctioning and automatically erasing messages. He claimed that he had not removed any messages and had provided all relevant information to the inquiry.
NHS leader: junior doctors’ strikes could lead to tipping point
Matthew Taylor, chief executive of the NHS Confederation, has warned that upcoming strikes by junior doctors could push the NHS to a tipping point early in the new year. The strikes coincide with typical winter pressures, including cold weather illnesses, bed shortages, and increases in norovirus cases, potentially overwhelming the health service. Junior doctors in England have been on strike this week, and are planning a six-day stoppage from 3 January. The strikes have already led to the postponement of outpatient appointments and operations, with Cheltenham general hospital closing its A&E unit due to staff shortages. The dispute centres on their demands for a 35% pay rise. Recent talks between the British Medical Association and the department of health have not resolved the issue. Dr Vivek Trivedi, for the BMA, argues that the Government's offer of an additional 3% pay rise is insufficient. He emphasises that junior doctors need fair pay to prevent them from seeking employment abroad, and believes the public still supports their right to strike.
Northern Ireland: Donaldson says no agreement on Windsor Framework
Northern Ireland secretary Chris Heaton-Harris has declared that negotiations aimed at restoring the Stormont government have concluded, offering a financial package exceeding £3.3 billion for the Executive's return. However, DUP leader Sir Jeffrey Donaldson asserts that no final agreement on the post-Brexit Windsor Framework has been reached. He urged immediate resolution of public sector pay disputes by the UK government, independent of Stormont's restoration. Alliance leader Naomi Long, who believes the financial package is substantial yet insufficient, has urged the DUP to return to government. Sinn Féin’s Mary Lou McDonald expressed disappointment over the potential delays, while UUP leader Doug Beattie acknowledged the end of talks but noted ongoing discussions about the 'good financial package.' He stressed the need for public sector pay resolutions before Christmas. The legislation for moving forward is reportedly ready.
