House prices, pensions, help-to-buy and BHS

Britain’s biggest estate agent expects UK house prices to fall 1 per cent in 2017 before recovering in 2018 because of economic weakness caused by uncertainty following the referendum decision on 23 June. Countrywide says that the Brexit vote will have an impact on the economy generally, which will feed into household incomes and possibly delay decisions to move house. People are also trying their luck more when it comes to negotiating the price of their new homes, as higher stamp duty payments and Brexit mean people feel able to ask for a lower price. Although availability of finance is good, Fionnuala Earley, Countrywide’s chief economist, said we shouldn’t ‘push’ to buy a home while prices are slightly lower. ‘Buying a home is a long term affordability decision,’ she said. Pensions Pensioners could lose nearly a third of their retirement pot under government plans to save companies being crippled by growing pension costs, analysis for the Daily Telegraph has found. The cuts could become possible under measures being considered by MPs in the Work and Pensions Committee, which would for the first time allow cash-strapped employers to reduce workers’ final salary-type pensions without first going through courts.