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Young families worst hit by rising prices
New research released this week by GE Money shows that over 40% of British parents have been forced to try and spend less and change their spending habits in the past six to 12 months. Young families, with children under the age of four, appear to be most affected with almost half (46%) admitting that they are trying to spend less than they did 12 months ago.
moneybasics has produced a Starting a Family guide to help you if you’re a parent or hope to be a parent sometime in the not too distant future. In addition to the guide go here for more help with managing the family finances.
Please read on for a summary of the top personal finance news stories for the week beginning 28th July 2008.
Monday 28th July
House prices to rise by a quarter – House prices are forecast to rise by 25% by 2013 according to the National Housing Federation. The report states that average house prices are expected to fall by 4.4% in 2008 and 2.1% in 2009, then stablise in 2010 before rising at rates at or above 9% in 2012 and 2013.
This prediction was made because the UK’s demographics are changing and the National Housing Federation forecast that these changes will continue, at least until 2013. The rationale is as follows: people are living longer, they are marrying later and getting divorced more, therefore demand for homes will increase in the longer term. These are certainly reasonable assumptions. The real question through, is that even if demand has increased due to changing demographics, has the scale of the increase in house prices (house prices have more than doubled in the last decade) been an accurate reflection of the scale of the increase in demand? If it has been, then it is likely that prices will continue to rise, if it hasn’t, then the forecast by the National Housing Federation is unlikely to come to pass.
moneybasics has produced a Starting a Family guide to help you if you’re a parent or hope to be a parent sometime in the not too distant future. In addition to the guide go here for more help with managing the family finances.
Please read on for a summary of the top personal finance news stories for the week beginning 28th July 2008.
Monday 28th July
House prices to rise by a quarter – House prices are forecast to rise by 25% by 2013 according to the National Housing Federation. The report states that average house prices are expected to fall by 4.4% in 2008 and 2.1% in 2009, then stablise in 2010 before rising at rates at or above 9% in 2012 and 2013.
This prediction was made because the UK’s demographics are changing and the National Housing Federation forecast that these changes will continue, at least until 2013. The rationale is as follows: people are living longer, they are marrying later and getting divorced more, therefore demand for homes will increase in the longer term. These are certainly reasonable assumptions. The real question through, is that even if demand has increased due to changing demographics, has the scale of the increase in house prices (house prices have more than doubled in the last decade) been an accurate reflection of the scale of the increase in demand? If it has been, then it is likely that prices will continue to rise, if it hasn’t, then the forecast by the National Housing Federation is unlikely to come to pass.
Tuesday 29th July
Mortgage approvals fall again –With banks and building societies limiting the amount of capital that they are lending to each other, access to finance for many consumers is becoming increasingly hard to come by. In June the number mortgages approved fell to its lowest level since records began, according to the Bank of England.
Mortgage approvals fall again –With banks and building societies limiting the amount of capital that they are lending to each other, access to finance for many consumers is becoming increasingly hard to come by. In June the number mortgages approved fell to its lowest level since records began, according to the Bank of England.
Wednesday 30th July
Gas prices on the rise -This week there have been significant hikes in energy prices as suppliers continue to look to pass rising fuel costs onto consumers. This is going to add that extra little bit of pressure to our budgets. As much as it pains all of us to cut down, in a time like this we should make sure that we are even more careful that we live within our means.
For example, if you are thinking of Buying a Car, have you factored in all the additional charges such as insurance, road tax, and more expensive fuel costs? If you haven’t you may not realise that in the present climate public transport and/or a bicycle may be the best option to reduce spending.
Gas prices on the rise -This week there have been significant hikes in energy prices as suppliers continue to look to pass rising fuel costs onto consumers. This is going to add that extra little bit of pressure to our budgets. As much as it pains all of us to cut down, in a time like this we should make sure that we are even more careful that we live within our means.
For example, if you are thinking of Buying a Car, have you factored in all the additional charges such as insurance, road tax, and more expensive fuel costs? If you haven’t you may not realise that in the present climate public transport and/or a bicycle may be the best option to reduce spending.
Thursday 31st July
70,000 households in negative equity –Standard and Poor released data showing that the number of households in negative equity (where the value of the outstanding mortgage is greater than price the property sells for on the market) stands at 70,000.
If you are thinking of Setting Up a Home, make sure you research thoroughly all the options available to you.
Prepared for moneybasics by Jason Taylor, Advocacy Officer (Credit Action).
70,000 households in negative equity –Standard and Poor released data showing that the number of households in negative equity (where the value of the outstanding mortgage is greater than price the property sells for on the market) stands at 70,000.
If you are thinking of Setting Up a Home, make sure you research thoroughly all the options available to you.
Prepared for moneybasics by Jason Taylor, Advocacy Officer (Credit Action).
| Top Money Stories July 28th – August 3rd 2008 |
