Today in Money: As the latest GDP figures are released, we explain how it’s measured and what it’s used for; landlords are enjoying the lowest buy-to-let mortgage rates since 2022 – but it’s not all good news for owners of multiple properties.
Friday 12 September 2025 08:25, UK
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As the dust settles on the announcement of the latest GDP figures, here’s the full report from our business and economics reporter James Sillars:
The government has been on a mission to boost growth in the UK, so today’s figures are likely to be disappointing for Rachel Reeves.
While we haven’t heard directly from the chancellor in response to the figures, the Treasury has put out a statement…
“We know there’s more to do to boost growth, because, whilst our economy isn’t broken, it does feel stuck,” a spokesperson said.
“We’re making progress: growth this year was the fastest in the G7; since the election, interest rates have been cut five times, and real wages have risen faster than they did under the last government.
“There’s more to do to build an economy that works for, and rewards, working people.”
What do the Conservatives have to say?
Shadow chancellor Mel Stride said the government was distracted from the problems the country is facing.
“While the government lurch from one scandal to another, borrowing costs recently hit a 27-year high – a damning vote of no confidence in Labour that makes painful tax rises all but certain,” he said.
“It is little wonder that Starmer has stripped Reeves of control over the budget. But sidelining her is not enough – he must also reject her failed economic approach that has left Britain poorer”
Today’s GDP figures point towards an economy that’s “bouncing around a little bit” but it’s not anything to panic about, says our data and economics editor Ed Conway.
He explained that the economy has been “more volatile than usual” due to tariffs being imposed by the US, which pushed UK businesses to rush goods over to America earlier in the year, before the tariffs were imposed.
With the autumn budget coming up in November, he says there is a lot of speculation over the state of the public finances and government borrowing.
“So much of that is affected by how the economy is doing… and the fact that it has flatlined in July, while it’s not anything to panic about, does underline that we are not talking abut growth going gang busters right now,” he says.
“The stronger growth is, the more income we’re generating across the country.
“The stronger that is, the more tax revenue is coming in as well, and the more tax revenue that’s coming in, the smaller that black hole will be for Rachel Reeves.
“This is not an economy that is absolutely powering ahead. It’s not anything to panic about but nor is it something to celebrate.”
The UK economy failed to grow in July, the latest official figures show.
A measure of everything produced in the economy, gross domestic product (GDP) was flat at 0% in July, according to the Office for National Statistics.
This is down from 0.4% growth in June, but exactly what economists had predicted.
The manufacturing sector saw activity pull back by 1.3% – the biggest contraction since July 2024.
This held back growth in the wider economy, with the services sector up 0.1% thanks to expansion of 0.6% for retail and construction growing 0.2%.
Liz McKeown, ONS director of economic statistics, said: “Falls in production were driven by broad-based weakness across manufacturing industries.”
Monthly GDP figures tend to be more volatile, so while they are helpful at giving us a view of the economy, quarterly figures are relied on for giving us a clearer picture.
In the latest quarter, the economy grew by 0.3%.
Every Friday, we take an overview of the mortgage market with industry experts and round up the best rates with Moneyfactscompare.co.uk.
Landlords are enjoying the lowest buy-to-let mortgage rates since 2022, but the upcoming budget and possible legislation changes are taking the shine off any cuts.
Buy-to-let mortgage deals tend to have higher rates than residential deals because lenders consider rental properties to carry more risk.
They had been on the rise near the end of last year, but that changed in February when average rates started to fall.
The overall average two-year fixed buy-to-let rate sits at 4.85%, and the average five-year rate is 5.21%.
That’s down from 5.35% and 5.33% this time last year.
Here are the best rates available…
Moneyfacts also rounds up the best buy deals, which can be useful if you want to save on the upfront cost.
This fall in rates has come as the number of buy-to-let products on the market hit the highest level since records began in 2011.
Usually, falling rates and a big variety of deals to choose from would be a landlord’s dream, but with outside pressures mounting, the situation doesn’t seem so great.
Rachel Springall, finance expert at Moneyfacts, says: “The cost of finance is a fundamental part of becoming a landlord, as tax changes over the years have led to a more challenging situation for investors to hit desirable profit margins.
“The speculation on more changes to hit private landlords in the upcoming budget will also lead to more concerns.”
She explains that those who do not have buy-to-lets held in a limited company could get hit if national insurance contributions are levied on pre-mortgage profits.
Some people consider using a limited company to purchase rental properties to be more tax efficient – especially for higher-rate taxpayers.
“The growing number of these set-ups will only escalate if the government makes the NICs levy rumour a reality,” Springall adds.
Landlords are also facing an uncertain path as they wait to see the changes made in the Renters’ Rights Bill.
The bill, which is going through parliament, aims to reform the private renting structure, giving tenants more protection.
“Many will be struggling to keep up with legislation, which can come at a financial cost and time drain to keep up with changes,” Springall says.
“One of the major areas here is the abolition of Section 21 no-fault evictions, which will offer greater security to renters, because landlords will no longer be able to evict tenants without providing a reason.
“Another area being reviewed in the Renters’ Rights Bill, which will favour tenants, is the Decent Homes Standard, in which landlords will have to make sure that their rented property meets specific heat, safety and functionality requirements.
“However, since April 2020, landlords have been prohibited from letting properties with an EPC rating below E, so there would have already been progress to make the private rental sector more energy-efficient, no doubt saving renters some cash on their energy bills as a result.”
She suggests new or existing landlords should seek advice to assess how any moves in the sector will affect them.
If they want to exit the sector, they will need to understand the costs involved, which include any agent fees and Capital Gains Tax.
You can check your mortgage payments using our calculator below…
The latest GDP figures will be released at 7am – here’s a quick breakdown of what you need to know…
Basically, GDP is a tool used to assess the size and health of an economy.
It stands for gross domestic product and measures the monetary value of final goods and services produced in the country over a given period.
Generally, if GDP is growing, and inflation is in check, it’s a strong sign that the economy is doing well, with more jobs and better wages available, and people spending more money.
If it’s falling, it signals the economy is doing badly, often bringing with it lower incomes and job cuts.
Governments, businesses and economists monitor GDP growth among other indicators to understand where the economy stands – and where it’s headed.
How is it measured?
GDP can be measured in three ways:
Output is the most often cited of the three, as it is the measure with the best information available to the Office for National Statistics (ONS).
The ONS, the UK’s biggest statistics authority, publishes GDP figures every month – one of only a small number of countries to do so. However, the monthly data is more volatile, meaning the quarterly figures, which cover three-month periods, are seen as more important.
What does GDP not include?
GDP is an important tool, but it’s not perfect.
The International Monetary Fund cautions there are some things that GDP does not reveal, such as the overall standard of living or wellbeing of the country.
It points out that the quality of life can depend on how wealth is distributed among residents, and not just the overall level. Higher output may also come at the expense of leisure time or the running down of non-renewables, it notes.
GDP also excludes any unpaid work, such as childcare or looking after elderly relatives.
One of the best measures of living standards is GDP per capita – which reflects economic growth per head of the population. This also takes into account the effects of migration.
No growth can lead to recession
If GDP falls for successive three-month periods (quarters), the UK is in a technical recession.
During a recession, there’s less money circulating: less money for workers from their employers, less money being spent in shops and restaurants, and less money going to the government in tax from wages to pay for things like benefits and public services.
Fenwick has launched its first loyalty scheme in its 140-year history, with customers able to get money-off points and exclusive benefits.
Under the scheme, called MyFenwick, shoppers start on a green tier and progress to a gold tier as they collect points.
The green level includes priority booking access and the chance to join members-only shopping events.
Those in the gold tier can get triple points on purchases made on the weeks around their birthday and exclusive invitations to select events.
Rewards start from £2 off for 200 points and can be redeemed for up to a year.
There’s also the chance to win access to member-only events with partners like the Baltic Centre for Contemporary Art and Newcastle United Football Club.
The John Lewis Partnership has blamed budget tax hikes for a deeper half-year loss.
The UK’s largest employee-owned business, which owns John Lewis department stores and Waitrose supermarkets, reported a headline loss before tax and exceptional items of £34m for the six months to 26 July.
That compared to a £5m loss in the same period last year. The higher figure was reached despite a 4% rise in group sales to £6.2bn.
“This result was significantly impacted by costs not present in the equivalent prior period”, the partnership explained, “including £29m of costs for the new Extended Producer Responsibility (EPR) packaging levy (where we took the full annual cost in our first half results), alongside higher National Insurance Contributions (NICs)”.
JLP said the loss figure also reflected additional investment in its systems and growth-led teams.
Morrisons will trial AI-powered shopping trollies that can instantly identify when items are placed inside.
The system uses a combination of four edge AI cameras and scales, allowing shoppers to track their purchases via a digital screen.
A barcode will then appear when people reach the self-checkout, meaning items don’t need to be removed from the trolley.
The trial with US company Instacart will take place at an unconfirmed Morrisons store next year before a potential further rollout.
Morrisons has said it will integrate the smart trollies with its More Card loyalty programme, meaning offers and promotions will flag as shoppers pass through the store.
Staff can also keep track of the AI trollies through handheld devices, which will flash red if a customer tries to leave the store without paying.
Morrisons isn’t the first supermarket to trial this technology. Waitrose announced similar plans last week.
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