Coronavirus has had an extraordinary impact on the state of the world’s finances, with economic downturns, shuttering high-street stores and uncertainty rife after lengthy lockdowns dramatically slowed down the rate of spending.
However, as we begin to see the light at the end of the tunnel, research and forecasts by experts show that the situation is looking a little more optimistic.
Over 42 million people within the UK have had their first dose of the vaccine as of June 2021. It appears that, despite a setback caused by the new “Delta” variant of the virus, the country’s economy is headed towards a more hopeful and positive path into the next year.
With this, as well as more positivity on the horizon as predicted by experts, the UK is said to be on track for a fast recovery from the COVID-19 pandemic.
That being said, exactly what can we expect from the UK’s path to recovery?
According to projections released by the OECD, the UK’s economy is likely to grow by 7.2% in 2021, with the Bank of England projecting that GDP is set to recover “rapidly” towards pre-COVID levels towards the end of 2021.
As restrictions have eased, spending is set to continue to increase, with fewer health concerns posed by the pandemic as a result of widespread vaccinations and restriction easing. Initiatives such as stamp duty holidays and other financial support schemes are also helping to boost spending and increase confidence in a post-COVID nation. As well as individuals, these schemes have also helped businesses build more confidence, including those within the commercial mortgage sector.
As a result of the pandemic, you’d be right to assume that many commercial lenders have been more cautious with their approach in regard to lending.
However, there has been an increase in opportunities for commercial mortgages within certain sectors, such as manufacturing and healthcare – and at Finance 4 Business, we’ve seen a steady trend of commercial mortgage completions.
Another positive sign for the UK’s recovery is the amount of money that people have been able to save as a result of lockdowns. According to financial experts at the Centre for Economics and Business Research (CEBR), across lockdowns, households in the UK have accumulated around £192 billion worth of savings. With restrictions and health anxieties easing, many are set to get spending.
Many households have found themselves saving money over lockdown, but the same goes for companies. As stated by Aldermore bank, the COVID-19 pandemic has caused 51% of SME decision makers to change their savings habits. This could mean that a surge of business investments, including those within commercial property, is on the horizon, helping to propel the economy further into 2022 and hopefully, well beyond.
Finance 4 Business
Finance 4 Business is one of the UK’s award-winning specialist finance brokerages. With this comes significant experience within commercial finance, and client testimonials call out our unparalleled expertise and swift advice to investors and businesses looking for commercial mortgage lenders.
We’re aware that right now is a difficult time when it comes to navigating your usual routes to commercial lenders. That’s why our team of mortgage and commercial bridging specialists are here to help businesses find the best pathway to securing finance, enabling you to access semi-exclusive products from both mainstream and specialist commercial mortgage lenders.