The housing market is gaining momentum even as consumer spending eases, showing this isn't a normal economic recovery, according to Chief investment Officer Haig Bathgate.
Evidence from around the UK points to a gain in house prices, with increased confidence in the sector aided by initiatives such as the government's Help-to-Buy scheme. There's already speculation that a bubble could be developing, and it makes sense that the Bank of England has been given the responsibility to pull any stimulus should the sector overheat.
No such chance in consumer spending at the moment, where a report showed slowing growth in September. The conundrum for policy makers is that consumption is what really counts towards ensuring our economy gets back on track. The divergence between the housing market and the consumer is evident in the US as well, and goes some way towards explaining the Federal Reserve's caution in not tapering its quantitative-easing programme last month.
Haig, speaking on BBC Radio's Good Morning Scotland, also talked about the sale of Royal Mail shares.
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