Category Archives: Money

First-time buyers in UK drop by a fifth as higher mortgage costs bite

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Lender says homes needing renovation are most in demand as people seek cheaper properties

The number of first-time buyers in the UK has fallen by more than a fifth, while homes in need of renovation are most in demand as buyers look for cheaper properties, in the latest evidence that people are struggling with higher mortgage costs.

There were 22% fewer first-time buyers between January and August compared with the same period last year, according to the mortgage lender Halifax. They still accounted for more than half (53%) of all home loans agreed in the first eight months of this year, similar to a year earlier (52%).

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Scrapping inheritance tax would cost £15bn a year by 2032, says IFS

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Thinktank carried out analysis as calls mount among Tory MPs for the tax to be abolished

Scrapping inheritance tax would cost the government almost £15bn a year in lost revenue by 2032, according to analysis by the Institute for Fiscal Studies that follows calls from Tory MPs for the main tax on inherited wealth to be abolished.

The thinktank said the latest figures from HMRC showed fewer than 4% of estates paid inheritance tax (IHT) in 2020–21, but the rapid growth in wealth among older individuals meant this number was set to rise to more than 7% over the next decade.

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Water firms in England and Wales ordered to cut £114m from bills

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Fewer than half of companies meeting their targets on leaks, says the regulator, Ofwat

Water companies in England and Wales have been ordered to return £114m to customers through lower bills next year because progress on leakage and sewage spills has been “too slow”.

In its annual water company performance report, the regulator, Ofwat, said the majority of water and wastewater companies were underperforming on targets set for 2020-25 to deliver better outcomes, for customers and the environment.

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UK manufacturers cut hiring plans amid ‘sharp slowdown’, survey finds

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Firms preparing for difficult year as ‘potent cocktail’ of difficulties takes hold, says industry lobby group

UK manufacturers are cutting their recruitment plans after being hit by a slowdown in orders as a downturn looms, a new survey shows.

Britain’s manufacturers are “battening down the hatches” amid a sharp drop in activity, according to the latest quarterly data from Make UK, which represents manufacturers, and the business advisory firm BDO.

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Proportion of UK house sellers cutting asking price reaches ‘highest in over a decade’

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More than 36% of properties have had asking price cut at least once — the highest figure since 2011

UK house sellers are cutting their asking prices at the fastest rate in more than a decade, after high interest rates dampened demand for property this summer.

The proportion of homes on the market which have had at least one price reduction is at its highest level since January 2011, the property website Rightmove has reported.

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New £1bn government upgrade to plug Great Britain’s draughtiest homes

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Households could save £400 a year on energy bills via means-tested insulation scheme

Households could save up to £400 a year on energy bills under a new means-tested scheme to insulate more than 300,000 of Great Britain’s draughtiest homes.

The government is spending £1bn on grants for homes that have low energy efficiency ratings and are in lower council tax bands.

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UK ‘mortgage meltdown’ looms amid ‘terrifying’ growth in arrears

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Jump in borrowers unable to make payments with landlords particularly hit and ‘worse to come’

Mortgage arrears jumped by 13% in the second quarter of the year to the highest level since 2016, according to Bank of England figures that underscore the stress in the UK mortgage market.

Rising interest rates and unemployment over recent months have put pressure on household disposable incomes, forcing some families to cut or suspend their monthly mortgage payments.

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Number of Britons facing significant internet outages doubles in a year

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Two-fifths of UK adults disconnected for three hours or more with one in four left without service for nearly a week

The number of Britons who have experienced their internet connection failing for at least three hours has almost doubled in the last year, with irate consumers now ranking broadband outages as a bigger frustration than roadworks or public transport delays.

In the past year, two-fifths (41%) of all UK adults – 22 million consumers – have had their internet disconnected for three or more hours, a significant increase on the 12 million who reported disruption the previous year, according to a report by the price comparison website Uswitch.

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Britons least likely to say work is important to them, world study finds

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UK losing belief that hard work brings better life, and fewer millennials now think work always comes first, survey indicates

In the great “live to work or work to live” debate, Britons have traditionally been seen to fall into the first group. But research appears to turn that reputation on its head.

According to a study of 24 countries, Britons are less likely than people from elsewhere to place importance on work. Increasingly, they also no longer believe that hard work brings a better life.

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Petrol prices expected to rise as oil cost climbs above $90 a barrel

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Motorists could be hardest hit after Russia and Saudi Arabia extend cuts to supplies

Motorists are braced for higher pump prices after the cost of oil climbed above $90 a barrel for the first time this year as Russia and Saudi Arabia extended cuts to supplies.

Oil jumped to its highest price since last November, after the two oil-rich nations said they would prolong a plan to withhold supplies from the global market until December.

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China’s share of Europe’s electric car market accelerates as UK leads sales

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Chinese-owned MG’s MG4 is Britain’s bestselling EV after Tesla’s Model Y in first seven months of year

China’s share of the European electric car market has more than doubled in less than two years as the world’s second largest economy tries to take the lead in the transition away from petrol and diesel cars.

The UK is the largest market in Europe for Chinese electric car brands, accounting for almost a third of sales in 2023 so far, according to data from Schmidt Automotive Research on the 18 largest European car markets. About 5% of all new car sales in the UK were from Chinese brands in the first seven months of 2023, a market share second only to Sweden.

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Ex-Nationwide teller in London jailed for part in £130,000 bank fraud

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Nathan Gilbert, of Enfield, changed the account details of customers and fraudulently issued passbooks

A former teller at a London branch of Nationwide has been jailed for more than two years for his part in a £130,000 bank fraud.

Nathan Gilbert, 26, of Enfield, north London, who was said to have abused his position of trust at the bank, pleaded guilty at Southwark crown court to committing fraud and was sentenced earlier this year.

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Biden student-debt plan hailed as ‘big step forward’ for millions of borrowers

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Advocates say proposals that cut debt to zero for some borrowers and reduce monthly interest payments are good news

Joe Biden’s new student-loan plan is an important and large step forward on student debt forgiveness in the US even after a previous debt reduction program was controversially struck down by the supreme court, advocates say.

When the justices ruled against Biden’s plan to forgive up to $20,000 in federal student loans per borrower in June, 40 million debt-burdened Americans were left with questions – especially as monthly payments would resume in October after being paused for over three years because of the Covid pandemic.

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Direct Line to pay £30m to overcharged car and home insurance customers

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Company breached rules that state existing policyholders should not be charged more than new ones

Direct Line will pay about £30m to customers who were charged more than they should have been to renew car and home insurance policies.

The UK’s second biggest car insurer said it discovered the overcharging problem after the incorrect implementation of the new pricing practice regulation that came into force in January last year. Under the rules, existing customers should not be charged more than if they were a new customer.

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UK house prices fall at fastest rate since 2009, says Nationwide

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August 5.3% drop comes as sales completions down by about 40% in first half of year compared with 2021

UK house prices fell 5.3% in August compared with the same month last year, the fastest annual drop in 14 years, according to Nationwide Building Society.

The lender said the fall, which was the biggest since July 2009, when the global economy was in the depths of the financial crisis, was driven by soaring mortgage costs, which are putting off potential buyers. Average house prices are more than £14,500 lower than they were a year ago and mortgage approvals have plummeted by a fifth compared with pre-pandemic levels.

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UK home sales in 2023 will be lowest in a decade, says Zoopla

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Interest rate rises on mortgages are weakening demand, property website says

The number of UK homes sold this year is expected to fall to the lowest level in more than a decade, as the soaring cost of mortgages puts off homebuyers.

House sales reaching completion are expected to fall 21% year-on-year to about 1m in 2023, the lowest level since 2012, according to a report from the property website Zoopla.

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Homeowners left out of pocket after two-year delays at UK Land Registry

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Administrative hold-ups leave buyers missing best mortgage deals and some owners unable to sell

Long delays in registering properties with the Land Registry across Great Britain are causing frustration among homeowners and buyers with some being left out of pocket as a result.

Latest figures from His Majesty’s Land Registry show that it is taking almost two years for some applications to make changes to the register to be completed.

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Drivers warned of copycat websites overcharging for Ulez fee

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Which? advises drivers paying London ultra-low emission zone fee to make sure they’re using official TfL website

Drivers are being ripped off by copycat websites that add extra fees to the ultra low emissions zone charges in London, consumer champion Which? has warned.

As Ulez expands across all boroughs in the capital from Tuesday, Which? has found a series of identical, unofficial websites targeting people trying to pay the charge. This has led to drivers paying more than the £12.50 daily fee.

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France to spend €200m on destroying excess wine as demand falls

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Fund aims to help struggling winemakers as they adjust to consumers’ changing habits

The French government has announced it is to set aside €200m to fund the destruction of surplus wine production in an attempt to support struggling producers and shore up prices.

Several major wine-producing regions in France, particularly the Bordeaux area, are struggling because of a cocktail of problems including changes in consumption habits, the cost of living crisis and the after-effects of Covid-19.

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Probation service pays undisclosed sum to ex-contractor after racial harassment

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Lloyd Odain was subjected to discrimination, including monkey chants, in 2019 while working for the service

HM Prison and Probation Service has paid an undisclosed settlement to a former contractor who endured racial discrimination and harassment, including monkey chants.

Lloyd Odain, who worked for the probation service, was subject to incidents of racial discrimination by another contractor in 2019.

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