Leisure to struggle as high earners’ incomes squeezed

The leisure sector is yet to show signs of recovery from the cost-of-living crisis, in part because still-cautious households are prioritising buying goods rather than expensive leisure services. But a relatively large squeeze on higher-earning households’ disposable income will also be playing a role. And with those households set to bear the brunt of tax hikes in the next Budget, we think leisure demand will be slow to recover and rental growth will therefore underperform.