UK house prices rose 2.6% year-on-year in September, marking the slowest annual increase since May, according to data released Wednesday by the Office for National Statistics. The rise was down from an upwardly revised 3.1% in August.
Meanwhile, private-sector rents increased 5.0% in October compared with a year earlier—slowing from 5.5% in September and recording the smallest annual rise since August 2022.
Consumers Worried About Higher Taxes Ahead of Budget
Retailers are warning that consumer spending may weaken during the critical Christmas season as the UK public prepares for potential tax hikes.
In a speech on Tuesday, UK Finance Minister Rachel Reeves hinted that the Labour government may have to break its pre-election pledge not to raise one of the major taxes, stating that “we will all have to contribute” in the upcoming November 26 budget.
According to Marks & Spencer (M&S) CEO Stuart Machin, shoppers are becoming increasingly uneasy.
“Our customers are increasingly concerned about rising costs and higher taxes, and they’re worried about the budget,” Machin told reporters. He added that concerns intensified following Reeves’s speech, citing an immediate customer phone survey conducted by the company.
Christmas Sales Could Be Affected
December is typically the most important trading month for UK retailers, but the timing of this year’s budget—closer to Christmas than last year—is raising fears of reduced festive spending.
While Machin expects M&S to have a “good” Christmas season, he acknowledged that tax worries could hold consumers back. The retailer, which operates over 1,000 UK stores and sells food, clothing, homeware, and beauty products, is closely monitoring customer sentiment.
