PRESS DIGEST - Financial Times - July 15

Financial Times

BUYERS HOLD OFF AMID MIXED SIGNALS

According to two surveys to be published on Tuesday, consumers are increasingly reluctant to venture into the uncertain housing market or to spend beyond essential purchases. Analysis by the Royal Institute of Chartered Surveyors shows enquiries from potential homebuyers and instructions to sell properties fell again in June, along with the number of sales completed per surveyor. The British Retail Consortium and KPMG will also report that spending growth on the high street declined last month, with growth driven more by food price inflation than by consumer resilience.

DEMAND LIKELY TO DRIVE UP RENTS

According to a report by the Association of Residential Letting Agents, rents are set to increase by up to 15 percent over the next two years. The rise reflects both a shortage of supply and a rising demand from buyers struggling to get on to the housing ladder. The report from the letting industry's trade body estimates that the value of assets in the private rented sector has reached 500 billion pounds, which it says outstrips the total of all privately owned commercial property.

AUDIT SPOTS POSSIBLE 1.5 BILLION POUND TAX CREDIT ERROR