We're still not moving house

Get straight to the good stuff every day with the Multiply Minute; a lightning-quick roundup of the money news and how it affects you.

Home sales still low

Despite a surge in the number of people browsing properties in the last week, sales are still in the doldrums. Analysis suggests the tough outlook for jobs might be making people cautious about moving. Zoopla says buyer demand rose 88% after restrictions on moving house were lifted, but a lot of that seems to be window shopping.

Advice team’s take: A home is likely to be the biggest purchase you ever make, so most people are likely to take more than just one week to come to a decision and make an offer. We also think it will take time for the housing market to feel the full effects of the pandemic. Here's why.

5% deficit?

The UK’s public finances could be running an annual 5% deficit by 2024*, meaning we’d be borrowing more than we bring in. Why? A group of independent economists is predicting that GDP (gross domestic product) will be around 4% lower than it should have been, because of coronavirus. That’s a much gloomier forecast than both the Bank of England and the Office for Budget Responsibility, which both think the economy will recover more quickly.

Advice team’s take: One thing is for sure, the country is borrowing more. How much, and its longer term impact, will be subject of much debate for the coming weeks and months. It's a key reason why you should only save for short term goals into low risk cash savings accounts, and take a long-term view with any share-based investments.

Fishy business

Trade talks are still going on between the EU and the UK, to try and agree a deal before the December Brexit deadline. Fishing access to UK waters has been a big stumbling block up until now. But there are now rumours of a breakthrough now that the EU might be willing to ease its stance in fresh talks next week.

New threat to green energy

Global investment into the energy industry will fall by £324 billion this year, the biggest slump in the industry’s history. We’re all using less energy in lockdown, a fact which briefly caused US oil prices to turn negative last month. But it’s not just oil which will suffer this lack of investment. The International Energy Agency says renewables will be affected too, and it’s worried that the slump could derail global efforts to switch to zero carbon energy.

Advice team’s take: Let’s hope that as a global community we continue to think about our planet and its long term sustainability.