UK GDP Stalls at 0.1% as Landlord Crackdown Expands

London

The UK economy showed little sign of momentum as new figures revealed growth of just 0.1 percent, highlighting continued pressure on households and businesses while the government pushes ahead with a tougher crackdown on landlords.

Data released by the Office for National Statistics showed the economy barely expanded over the latest reporting period, with gains in some service industries offset by weakness in manufacturing and construction. Economists say the figures point to a fragile recovery that remains vulnerable to higher borrowing costs, weak investment, and cautious consumer spending.

At the same time, ministers confirmed an expansion of measures targeting the private rental sector, part of a broader effort to address housing affordability and tenant protections. The moves include tighter enforcement against substandard properties, stronger penalties for non-compliant landlords, and new rules aimed at curbing sharp rent increases. Officials argue the reforms are necessary to improve living standards and stabilize the housing market, but critics warn they could further squeeze supply.

Property groups and landlord associations say rising compliance costs, higher taxes, and tighter regulations are already pushing some landlords out of the market. They caution that fewer rental homes could drive rents even higher, particularly in major cities, adding pressure to already stretched households.

The weak growth data adds another challenge for policymakers. While consumer spending showed limited resilience, business investment remained subdued amid uncertainty over future interest rate moves and regulatory changes. Analysts note that growth at this level leaves the UK perilously close to stagnation, with little room for shocks.

The Bank of England has acknowledged the slowdown, signalling that future decisions on interest rates will depend on how inflation and growth evolve. Inflation has eased from recent peaks but remains a concern, limiting how aggressively the central bank can support the economy.

Government officials defended their approach, saying economic stability and housing reform must go hand in hand. “We are focused on protecting tenants, improving housing standards, and laying the foundations for sustainable growth,” a spokesperson said.

Opposition figures, however, accused the government of mismanaging both the economy and the housing market, arguing that policy uncertainty is discouraging investment and worsening the supply shortage.

With growth stuck near zero and housing tensions rising, economists warn the coming months will be critical. Much will depend on whether easing inflation, potential rate cuts, and clearer housing policies can help lift confidence and prevent the economy from slipping into a prolonged period of stagnation.

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