Press releases

The unusual two-tier consumer economy

8 April 2015

Commenting on the latest Bank of England Credit Conditions Survey, Ian Stewart, chief economist at Deloitte, the business advisory firm, said:

“Weak supply of, and demand for, mortgage credit is acting as a brake on housing activity. Mortgage supply remains under pressure and, in the last three quarters, consumer demand for mortgages has fallen at the fastest rate since the crash in 2008.

“This has created an unusual two-tier consumer economy. On the one hand, housing activity has been crimped by tighter mortgage regulation and concerns about affordability. Meanwhile, falling unemployment and a recovery in consumer spending power has boosted consumer spirits and is helping drive a recovery in consumer spending.”

End

Notes to editors

About Deloitte
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.

Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

The information contained in this press release is correct at the time of going to press.

Member of Deloitte Touche Tohmatsu Limited.

Mark Smith
Deloitte LLP
+44 (0) 20 7007 7082
+44 (0) 75 9004 1301
marksmith@deloitte.co.uk

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