October, 2023
As we transition into Autumn I wanted to write and let you know about some exciting new developments that are taking place at CCL along with an update on some general market conditions.
Political Party Conference season has seen each of the main parties jostling for a favourable position with the electorate and as we approach a General Election year it looks almost inevitable that there will be change of government. The main question will be can a new government stimulate the economy when there is only a finite amount of resources to go around?
The economy has suffered from a week growth trajectory so far this year. This is set to worsen in the near term, with a recession currently forecasted across Q4 2023 and Q1 2024. As such, the economy is expected to be contracting around the time of the Autumn Statement. The main drivers of the expected recession are falling household consumption and business investment. Both of these factors are affected by the tighter interest rate environment and its impact on borrowing affordability.
The Bank of England’s recent pause in hiking interest suggests that interest rates have hit, or are at least very close to, their peak. Nevertheless, rates are set to remain elevated compared to recent norms for some time. It is expected that the first rate cut may take place by mid-2024. In the medium-to-long term, rates are expected to settle at a higher level than prior to the current hiking cycle. It will be interesting to see what the chancellor will deliver in his Autumn Statement next month.
Many of our clients have short-term letting businesses and the requirement for the new STLL is now a statutory obligation. From the 1st October all eligible business operators must have applied for such a licence. It is illegal to trade without the application having been submitted. Under control of the local authorities this new regime is under resourced and not fit for purpose. We feel that it is an unnecessary burden. We support the Association of Scottish Self Caterers in their campaign to have the regulations amended to be fairer for all.
At CCL we have been working on some changes. Some may have noticed that we are in the middle of a rebranding process that should be complete by the end of the year when our offices are upgraded with new signs and window displays. By the end of the month, we will hopefully be in a position to launch our new website. It is state of the art and will have many excellent features to assist applicants search for businesses and properties. In addition to the website we are also upgrading the Virtual Tours that we offer. All of this is aimed at getting greater interaction with potential buyers and promoting your business in the best possible manner.
