Tagged 'Austerity Index'

JWT London’s Q2 Austerity Index charts Britons’ property woes

Austerity Index 2014 Q2

Three out of five Britons believe London is doomed to become “a ghetto for the super-rich.” This is one of several provocative findings that surfaced in JWT London’s sixth Austerity Index report, revealing a boiling pot of anxiety and tensions that are condensing into a hard-line stance on housing market regulation. As competition rises and affordability dips, a backlash is finding its target in immigrants, “transplants” and investors: Over a third of respondents in our study would even make it illegal for non-nationals to own property in the U.K.

Along with tracking the usual metrics to gauge the effect of prolonged austerity on British consumers, the latest survey looks at housing, which is becoming a serious and emotive problem in Britain. As wages have stagnated and mortgage lending criteria have constricted, the outlook for aspiring property buyers seems bleak. JWT London’s survey shows that almost half of those yet to start on the property ladder make a direct link between home ownership and their own self-worth. And while 46 percent of those unable to get onto the property ladder fear for their futures, 48 percent have lost hope that their grandchildren will ever own property in the U.K.

Marie Stafford, Planning Foresight Director at JWT London, explains: “The significance of property in the population’s psyche is somewhat exceptional to the U.K. compared to our neighbours in Europe, where renting is the norm. The divide between the haves and have-nots is getting keener, and nowhere is this felt more strongly than in the property market.”

The full report is available to download at austerityindex.com, along with reports from previous quarters.

JWT London’s Q1 Austerity Index finds Brits seeking solace in edible escapes

Austerity Index 2014 Q1

“Edible escapism” is how Brits are getting themselves through the slow economic recovery, according to JWT London’s latest Austerity Index. In a survey for the fifth Austerity Index report, 69 percent of British respondents acknowledged splurging on treats in the last three months, with 41 percent of these indulgences in the food or drink category. Treating, it seems, is eating. The report identifies foodie treats being used not only as a coping mechanism for therapeutic purposes but also as a social lifeline, a way to share experiences.

2014 marks the fourth year of austerity measures in the U.K.—strict coping behaviors are now ingrained, living standards have declined, and weariness about austerity remains unchanged. But our Austerity Index data reveals pockets of positive uplift, and the U.K.’s splurging habits suggest that these little mood-boosters are fueling optimism, even when household finances are barely surfacing.

“The way to Britain’s heart is surely through its stomach,” says Marie Stafford, Planning Foresight Director at JWT London. “It is a sign of the power of the experience economy, our need for social contact and a marker of how far Britain has come in its relationship with all things epicurean that food and drink should become our chosen indulgence.” However, this throws the country’s polarization into sharp focus: “It seems even more unfair that many households struggle to purchase nutritious food,” says Stafford.

The full report is available to download at austerityindex.com, along with reports from previous quarters.

Photo Credit: JWT London