Incomes set to' rise next year'

Written by Sam Jones on 26 September 2012.

UK households are set to see a rise in real income levels for the first time since the beginning of financial crisis which may assist people seeking to move up the property and get a mortgage

This is according to the Centre for Economics and Business Research (CEBR), which suggested that after taking inflation into account, incomes will rise by 0.5 per cent in 2013. However, the CEBR said incomes will drop by 0.2 per cent this year.

Households have struggled in recent times with low or no wage rises, while inflation has remained relatively high. Many people have seen wage freezes during the economic downturn, with inflation increasing sharply between September 2009 and 2011 to 5.2 per cent. The CEBR said real levels of income would start to pick up as inflation fell further with most middle and lower-income families seeing the most benefit.

"After four barren years, there is finally a glimmer of light at the end of the tunnel for retailers. Conditions will still be tough, just slightly easier than before" said CEBR economist Daniel Solomon.

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