Property stocks sink on Starmer’s gloomy speech, Oasis reunion set to boost UK economy

“While Labour’s pro-housing policies are theoretically positive for property developers, investors didn’t like the tone of Keir Starmer’s latest speech and a sea of red engulfed shares in the property space,” says Dan Coatsworth, Investment Analyst at AJ Bell.

“The prime minister’s tough talk on things getting worse before they get better might give some households the jitters and make them not want to get into more debt, such as taking on an expensive mortgage. That could have a negative impact on property market activity, hence why shares in housebuilders, property portals and kitchen companies were among the biggest fallers on the FTSE 100.

“The pound hit a two-year high against the US dollar amid expectations that UK rates will be cut at a much slower pace than the US. Inflation is still sticky in many places and UK private sector activity grew more than expected in August, meaning the Bank of England has an ever-growing list of things to consider regarding monetary policy decisions.”

Oasis reunion to boost UK economy

“Here come the Gallagher brothers to the rescue. Keir Starmer might have warned that the autumn Budget is going to be ‘painful’ in an attempt to get the public finances in a better shape, but Oasis’ reformation could provide a much-needed (gin and) tonic to the UK economy.

“Chancellor Rachel Reeves has been looking for ways to boost the public purse ever since Labour won the 4 July general election. Few, if any, predicted that Britpop could be a potential saviour, but the reformation announcement is likely to be fruitful for more than just the band.

“Taylor Swift’s recent run of UK dates has shown the public is willing to spend big when certain acts come to town. Reports suggest these concerts contributed £1 billion to the UK economy and there is the potential for Oasis to have a similar effect. The Eras Tour superstar played many of the same venues as those booked for the Oasis tour and the number of concerts could also be similar if the band add extra dates to meet the expected high demand.

“Taylor Swift fans from across the globe descended on the country this summer, doling out cash on accommodation, travel, new outfits, food and drink, tickets and merchandise. Oasis should easily command the same fervour from the public, and spending on Cigarettes and Alcohol could be mind-blowing.

“The big question is whether the financial boom from Oasis’ reunion is going to Live Forever. This looks like a big cash grab on behalf of the Gallagher brothers, but decades of hatred between the two individuals suggests the reunion might not have legs. Fans and the UK economy should enjoy it while it lasts.”

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