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Which towns have been hardest hit by the recession?
As the recession takes its toll across the UK, some places have been hit worse than others.
Swindon has been ranked the hardest hit town in the UK, experiencing an increase in unemployment of 197% and a 16% drop in house prices. The number of people claiming Jobseekers Allowance has also increased from 1,926 to 5,726 over the last year as a result of the closure of MFI stores, a Woolworths store and distribution centre, and the closing of a Honda plant. Luton has also been significantly affected by the recession, seeing the largest fall in house prices over the past year with prices falling by as much as 19%.
On the other end of the spectrum, Brent in West London has been ranked the most 'recession proof', having seen increases in average earnings of 12% and a below average increase in the number of people claiming Jobseeker's Allowance.
Wherever you are, now is a good time to draw up or review your monthly or weekly budgets. Credit Action has many resources to help you keep track of your incomings and outgoings.
Here is a review of the other top money stories of the past week commencing 27 April 2009.
Monday 27th April
Mortgage lending falls during March – According to the British Bankers' Association (BBA), mortgage approvals fell for the first time in four months in March. The number of mortgages approved for house purchases fell to 26,097 in March, down 6.8% from the previous month, and down 25% from March 2008. This announcement comes amidst some more positive signs seen in the housing market over recent months. According to Hometrack, house prices fell at their slowest rate for a year during April and a survey conducted by propertyfinder.com has suggested that homeowners are becoming increasingly confident that house values will be higher in 12 months. Despite some positive signs seen over the last few months, if prospective homeowners are unable to secure a mortgage, the housing market will continue to struggle.
Swindon has been ranked the hardest hit town in the UK, experiencing an increase in unemployment of 197% and a 16% drop in house prices. The number of people claiming Jobseekers Allowance has also increased from 1,926 to 5,726 over the last year as a result of the closure of MFI stores, a Woolworths store and distribution centre, and the closing of a Honda plant. Luton has also been significantly affected by the recession, seeing the largest fall in house prices over the past year with prices falling by as much as 19%.
On the other end of the spectrum, Brent in West London has been ranked the most 'recession proof', having seen increases in average earnings of 12% and a below average increase in the number of people claiming Jobseeker's Allowance.
Wherever you are, now is a good time to draw up or review your monthly or weekly budgets. Credit Action has many resources to help you keep track of your incomings and outgoings.
Here is a review of the other top money stories of the past week commencing 27 April 2009.
Monday 27th April
Mortgage lending falls during March – According to the British Bankers' Association (BBA), mortgage approvals fell for the first time in four months in March. The number of mortgages approved for house purchases fell to 26,097 in March, down 6.8% from the previous month, and down 25% from March 2008. This announcement comes amidst some more positive signs seen in the housing market over recent months. According to Hometrack, house prices fell at their slowest rate for a year during April and a survey conducted by propertyfinder.com has suggested that homeowners are becoming increasingly confident that house values will be higher in 12 months. Despite some positive signs seen over the last few months, if prospective homeowners are unable to secure a mortgage, the housing market will continue to struggle.
Tuesday 28th April
High earners taxed on their employers' pension contributions – People earning in excess of £150,000 will be taxed up to 30% on their employers' pension contributions. This measure that was briefly mentioned during the Budget last week will result in high earners facing increased tax bills. Traditionally, pension contributions have been exempt from income tax. This new measure that is forecasted to come into action in April 2011 marks another tax blow for high earners.
High earners taxed on their employers' pension contributions – People earning in excess of £150,000 will be taxed up to 30% on their employers' pension contributions. This measure that was briefly mentioned during the Budget last week will result in high earners facing increased tax bills. Traditionally, pension contributions have been exempt from income tax. This new measure that is forecasted to come into action in April 2011 marks another tax blow for high earners.
Wednesday 29th April
Rental prices fall in April – According to a survey conducted by Findaproperty.com, rental properties are cheaper than a year ago. Despite the general fall in rental prices, rental prices for large houses have increased over the last year. Average rent currently stands at £827 per month, up from £819 in March and down from £873 a year earlier. The fall in rental prices has been attributed to the increased supply of properties available to rent, as a result of homeowners being unable to sell their properties so renting them out instead. The supply of large houses has however fallen in recent months, which has driven up the rental prices.
Rental prices fall in April – According to a survey conducted by Findaproperty.com, rental properties are cheaper than a year ago. Despite the general fall in rental prices, rental prices for large houses have increased over the last year. Average rent currently stands at £827 per month, up from £819 in March and down from £873 a year earlier. The fall in rental prices has been attributed to the increased supply of properties available to rent, as a result of homeowners being unable to sell their properties so renting them out instead. The supply of large houses has however fallen in recent months, which has driven up the rental prices.
Thursday 30th April
Charitable donations begin to dry up –Official figures have revealed that many charities are being forced to cut jobs as a result of the drop in donations seen during the economic downturn. Over the past few years the voluntary sector has seen a significant expansion in its employees. In 2000 there were 500,000 staff working in the voluntary sector. By the autumn of 2008 this figure had risen to 724,000. However, the latest figures have indicated a fall in staff numbers of 8,000, to 716,000 at the end of the final quarter of 2008. A survey conducted by the National Council for Voluntary Organisations (NCVO) has indicated that one fifth of charities are planning to cut back on staff, despite many organisations seeing increases in the demand for their services during the recession.
Charitable donations begin to dry up –Official figures have revealed that many charities are being forced to cut jobs as a result of the drop in donations seen during the economic downturn. Over the past few years the voluntary sector has seen a significant expansion in its employees. In 2000 there were 500,000 staff working in the voluntary sector. By the autumn of 2008 this figure had risen to 724,000. However, the latest figures have indicated a fall in staff numbers of 8,000, to 716,000 at the end of the final quarter of 2008. A survey conducted by the National Council for Voluntary Organisations (NCVO) has indicated that one fifth of charities are planning to cut back on staff, despite many organisations seeing increases in the demand for their services during the recession.
Friday 1st May
UK public struggling to keep their head above water – The number of people being declared insolvent in England and Wales has reached record levels during the first quarter of 2009. The number of personal insolvencies reached 29,774, up 19% from the same period last year. According to the Insolvency Service, personal bankruptcies increased by 23.4% to 19,062 and the number of people signing up to an Individual Voluntary Agreement (IVA) rose by 11.8% to 10,713 during the first three months of 2009. Begbies Traynor, an insolvency specialist has forecasted that personal insolvencies could reach 125,000 this year. The number of businesses going bust however has also increased significantly over the past year, with 4,941 corporate liquidations in the first quarter of 2009, an increase of 56% from the same quarter last year. Many experts have seen these figures as confirmation that the 'green shoots' of recovery are a long way off.
People in the North East are most addicted to using credit cards – Callcredit.com has recently published statistics highlighting that 13% of people in the North East have four credit cards or more, with the vast majority of these people using their credit cards for everyday basics. The region also ranks highest for the number of people paying back only the minimum payment on their credit card, with only 37% of people clearing their full balance at the end of each month. People in Wales are much better at spending within their means, with only 4% of credit card holders paying off the minimum payment each month. Only paying back the minimum payment on a credit card every month will mean that interest will mount up on your outstanding balance. It is strongly advisable to pay the full amount off each month, or as much as you can, to avoid paying interest.
UK public struggling to keep their head above water – The number of people being declared insolvent in England and Wales has reached record levels during the first quarter of 2009. The number of personal insolvencies reached 29,774, up 19% from the same period last year. According to the Insolvency Service, personal bankruptcies increased by 23.4% to 19,062 and the number of people signing up to an Individual Voluntary Agreement (IVA) rose by 11.8% to 10,713 during the first three months of 2009. Begbies Traynor, an insolvency specialist has forecasted that personal insolvencies could reach 125,000 this year. The number of businesses going bust however has also increased significantly over the past year, with 4,941 corporate liquidations in the first quarter of 2009, an increase of 56% from the same quarter last year. Many experts have seen these figures as confirmation that the 'green shoots' of recovery are a long way off.
People in the North East are most addicted to using credit cards – Callcredit.com has recently published statistics highlighting that 13% of people in the North East have four credit cards or more, with the vast majority of these people using their credit cards for everyday basics. The region also ranks highest for the number of people paying back only the minimum payment on their credit card, with only 37% of people clearing their full balance at the end of each month. People in Wales are much better at spending within their means, with only 4% of credit card holders paying off the minimum payment each month. Only paying back the minimum payment on a credit card every month will mean that interest will mount up on your outstanding balance. It is strongly advisable to pay the full amount off each month, or as much as you can, to avoid paying interest.
- Which towns have been hardest hit by the recession?
- Mortgage lending falls during March
- High earners taxed on their employers' pension contributions
- Rental prices fall in April
- Charitable donations begin to dry up
- UK public struggling to keep their head above water
- People in the North East are most addicted to using credit cards
