There are other economic factors at play.
This rebound in confidence for the young coincides with when the Bank of England started cutting interest rates. Rate cuts are good for young home seekers and jobseekers, but bad for older savers.
There are significant economic consequences if this picture is correct too.
It might help explain the curiously high and nearly double-digit UK savings rate. That looks like a pandemic-style aberration. Older Britain is sat on its savings, despondent about the country and the economy, refusing to spend its money and weighing down GDP, even as pay rises for workers remain higher on average than the rate of inflation.
The takeaways from this chart are also well-reflected in the early financial results we are getting from businesses.
Many retail results have defied the gloom. Some bosses that complain the most about National Insurance rises seem to be reporting healthy sales and profits having basically paid for the tax.
Pub chain Mitchells & Butlers “traded very strongly across the festive season with like-for-like growth of 7.7%”. Fullers had an “outstanding five-week Christmas and New Year season across all parts of the estate”, 8% up on an already strong festive period last year.
Obviously challenges remain in the level of price rises. But inflation is on its way down to the 2% target, with a conscious attempt from government to limit regulated price rises for rail and water.
More rate cuts will come slowly, and the impact of previous cuts will also filter into the household sector.
A mortgage price war may be on its way to help a housing market rebound after months of Budget uncertainty.
The government will hope to draw a line under a tumultuous 2025, with what they hope is an investment boom typified by recent announcements on Heathrow and on a new northern train line.
So there’s a platform to defy the doom. But could people’s now politically charged perceptions of economic confidence be a brake on all that?
