Economy bounced back

The 1-minute read to get all the money news with expert adviser views.

GDP bounce

The economy grew 1.3% in the last 3 months of 2020, according to the Office for National Statistics (ONS). That might not sound like much, but it’s higher than the previous estimate of 1%. The savings rate also jumped in the final quarter, meaning Brits saved 16.3% of their income in 2020 - that’s the highest on record.

Key workers priced out

Frontline workers are priced out of home ownership in 98% of the UK, according to analysis by The Guardian. It found the average earnings of some workers are too low to qualify for the mortgage needed to buy an average-priced home in many areas, even with a 10% deposit.

Worst tax year ever

The tax year is coming to a close, and many savers will be happy to see the back of it. It’s been the worst tax year on record for returns, with the average Cash ISA rate sitting at just 0.63%*. Inflation since April 2020 has averaged 0.78%, meaning savers have lost money in real terms.

Hot cakes

Waltham Forest has topped a list of London boroughs where homes sell fastest, with two-bed terraced houses snapped up in just 35 days. Suburban boroughs dominate the list, with Barking and Dagenham, Bexley, and Redbridge close behind.

4 day week?

1 in 5 small businesses are considering cutting their work week to 4 days* in a bid to boost productivity. Many large companies are already trialling the idea. The survey by Be the Business also found 5% of small firms already have a 4 day week.