Bank of England’s Monetary Policy
The Bank of England’s chief economist, Huw Pill, emphasized the necessity of maintaining restrictive interest rates to combat persistent inflation. Despite a recent rate cut to 4.5%, the Bank projects that inflation could rise from 2.5% to 3.7% by summer. Pill advocates for a cautious approach to future rate adjustments, citing ongoing inflationary pressures driven by elevated wage growth. 
Housing Market Trends
In January 2025, UK house prices reached a new high, with a 0.7% increase attributed to first-time buyers expediting purchases ahead of an anticipated stamp duty rise in April. The average house price is now close to £300,000, with London averaging £548,288. Regional variations persist, and experts highlight the importance of realistic pricing and increased housing supply to balance the market. 
London’s property market continues to attract international buyers, who accounted for 27% of property sales in the first quarter of 2024, a 3% increase from the previous year. Notably, purchasers from India and mainland China are prominent, with Indian buyers representing 40% of London’s Asian property market. This trend reflects London’s enduring appeal as a global investment hub. 
Higher Education Financial Dynamics
Despite financial challenges in the higher education sector, UK university vice-chancellors have experienced significant pay increases. The median total remuneration rose by 4% to £340,901 in the 2023-24 academic year. This trend has drawn criticism from the University and College Union and prompted calls from Education Secretary Bridget Phillipson for universities to justify executive pay amid ongoing financial pressures. 
Heathrow Airport Expansion Debate
Chancellor Rachel Reeves faces scrutiny for citing a report supporting Heathrow Airport’s third runway, which was commissioned by the airport itself. Critics argue that the projected economic benefits and advancements in sustainable aviation fuel are overstated, suggesting that investment in domestic public transport may be a more effective growth strategy.
