Business News Round Up (23/08/2024)
JLL: Scotland’s property market sees £770m invested in H1 2024
Scotland’s real estate sector attracted £770 million in investments in the first half of 2024, a 4% rise on the 10-year average and a 30% jump from the same period in 2023. This contrasted with a 25% dip in investment across the UK as a whole when compared to the 10-year average. London saw a 46% fall in investment but still outstripped other regions by attracting £3.5 billion. Greater London (£2.8bn), the South East (£2bn), the North West (£970m) and Scotland (£770m) made up the rest of the top five for investment volumes. JLL’s research showed investment in the country’s property sector reached £16.2bn in H1, down on the 10-year average of £21.5bn but in line with figures seen in H1 2023. Although headline volumes remained a little subdued throughout the first half of the year, overall volumes including M&A, land and development investment increased 12% year-on-year to £22.6bn.
Consumer optimism on UK economy declines for the first time since February
Consumer confidence in the UK economy’s outlook for the next year has declined for the first time in six months, according to new data. However, optimism about personal finances is on the rise as mortgage rates have begun to decrease following the Bank of England’s recent interest rate cut. GfK’s long-running Consumer Confidence Index reported a four-point drop since July, with expectations for the general economic situation over the next 12 months falling to minus 15 in August—the first decline since February. The index also showed a three-point decrease in how consumers view the economy over the past year, now at minus 35, though both figures reflect improved sentiment compared to a year ago. Overall, the broader consumer confidence index remained steady at minus 13 in August, as the recent rate cut—the first since March 2020—offers some relief for household finances.
Manchester city centre office take up above national average – but below ten year average
Manchester city centre’s office market take up was above the national average in the second quarter of 2024, although it was below the ten year quarterly average, new figures have shown. During the second quarter, the take up was 506,729 sq ft and 7 per cent higher than the average. Key drivers included the professional services industries, government and TMT / creative industries. These accounted for 62 per cent of activity. In Manchester, prime rents have risen by 10 per cent year-on-year, reaching £44 per sq ft in Q2 2024. This trend is expected to continue as a result of rising demand. With nearly 943,000 sq ft of new developments set to be completed, Manchester’s rent growth positions it competitively against other UK cities. Key development areas include Spinningfields and St Peter’s Square.
Views wanted on 25p ‘latte levy’ on all single-use cups
Views are being sought on the Scottish Government’s proposals for a charge on all single-use cups. An expert group recommended the charge of between 20p and 25p in 2019 and legislation passed earlier this year gives ministers the powers to require suppliers of single-use items to charge a minimum amount. Ministers have stated that the minimum charge, which applies regardless of the cup’s material, will cut waste and promote responsible consumption. Under the proposals in a consultation document, there would be exemptions for schools and free drinks handed out in hospitals or care homes. In all other settings, those selling drinks would have to apply the charge when the beverage is purchased in a single-use cup. Research estimated the charge would lead to a behaviour change in 49% of the population. The government said that an estimated 388m single-use cups were used in Scotland in 2021-22, creating 5,400-tonnes of waste.
https://www.insider.co.uk/news/views-wanted-25p-latte-levy-33517011