Moneyblog

Every month, some 1,500 households across the country tell us what they think has happened to the value of their home over the last month, and what they expect to happen to its value over the next year. This data is then crunched into something called the House Price Sentiment Index, or HPSI for short. The name doesn’t trip off the tongue, but the index, produced in conjunction with Markit Economics, gives us a good glimpse into the housing market. Sentiment is important for housing — it can determine decisions by discretionary buyers, those who are not motivated by necessity, such as a move for work, for school or to

Nearly half a century after Ford Dagenham women sewing machinists struck for equal pay, a new survey shows women are still being penalised in the workplace – for having children. Equal pay for equal work is enshrined in law thanks to the bravery of those strikers, yet a cavernous gender pay gap remains. But now it is the demands of childcare — rather than sexist bosses — that is the enemy of equality. A TUC report has shown that fathers earn 21 percent more than other men. Mothers over the age of 33 typically earn 15 per cent less than women without children. Men usually work longer and harder when

You may this weekend have attended one of hundreds of events around the country to celebrate the 400th anniversary of Willliam Shakespeare’s death in 1616. Few writers have ever caught our imagination like the Bard of Avon. Many of you will have studied his plays at secondary school, examining their universal themes of love, revenge, sorrow and comedy. But now personal finance is on the National Curriculum (it forms part of citizenship for 11-16-year-olds), could works such as Romeo and Juliet, Twelfth Night and The Merchant of Venice be used to educate children about managing their money? And can adults aiming to pay off debts and save for the future

The Equity Release Council is rubbing its hands with glee this morning. Its latest figures reveal £393.9 million was lent over the first three months of the year, making it the best first quarter on record. But it seems to me that this is no cause for celebration. Equity release – or a lifetime mortgage – is somewhat of an extreme form of secured borrowing. It enables over-55s to borrow money against equity they have in their home and the cash can be used for any purpose the borrower likes, such as home improvements, holidays, new cars or helping their family. Typically there’s no interest to pay upfront but instead

Ah, the put-upon motorist. Fees to park outside your own house, potholes littering the streets, road tax, MOTs, and the biggest liability of all: insurance. Last year insurance premiums soared by 14 per cent. That’s an £81 increase in just 12 months, bringing the average annual comprehensive car insurance policy to £671, according to Confused.com. Analysis by the price comparison site found that every single region in the UK saw double-digit annual price increases in their car insurance costs over the past year. And that’s just the average. Last time I renewed my car insurance, my existing insurer quoted around £1,500, more than double what I was previously paying. I drive a

Mortgage Freedom Day. It has a nice ring to it, doesn’t it? Think about that for a second. Mortgage. Freedom. Day. Well, if you’re a new borrower, then today’s the day. According to Halifax, April 19 is when you’ll have earned enough to pay off the annual cost of your mortgage. It works like this: based on the average annual mortgage repayment cost of £7,584 and the average net annual income of £26,023, Halifax has calculated that homeowners who took out a mortgage in the last three months of 2015 will have now earned enough on average to cover their mortgage payments for the rest of 2016. It is worked out

Savers were hit with a double whammy of bad news last week. On Tuesday it was revealed that inflation had climbed to 0.5 per cent. Then on Thursday, to little surprise, the Bank of England kept interest rates on hold yet again. They’ve remained frozen at record low levels for more than seven years now. With the average deposit account paying just 0.4 per cent last year according to The Money Charity, it means if you’re not a savvy saver who constantly chases the best deals, you’re almost certainly losing money. That’s because inflation is eroding your nest egg more than the interest is helping it to grow. Is that fair? Some suggest that those who

Over the past year you may have heard about a ‘war’ being waged against the buy-to-let market. This could not be further from the truth – a war requires both sides to fight. Instead, at a time when politicians and regulators are pointing their swords at buy-to-let, banks are using theirs to hack away at their prices in a desperate attempt to keep a wounded market alive. The three months to 1 April saw a mad rush of activity, with landlords desperate to avoid being clobbered by increased stamp duty rates. Unsurprisingly, mortgage brokers are reporting a 10-15 per cent drop in the number of loans since. This has clearly panicked the

Since the start of April, anyone buying a home with a granny flat could have found themselves hit by an inflated stamp duty bill. They would have been caught up in the government’s move to get landlords and those who own second homes to contribute more to the Treasury’s coffers by way of a 3 per cent stamp duty surcharge. The planned rate varied between 3 per cent and 15 per cent of the sale price, depending on the property’s value. For example, a property with an annexe – the proper name for a granny flat – with an overall sale price of £500,000 would incur a new stamp duty

I know it’s de rigueur in many cities across Britain but it never ceases to rankle that councils charge people to park outside their own homes. And paying for the privilege of a parking spot is no guarantee of a space. When I lived in Hampstead, I would often arrive home to find the street chock-a-block with cars, leaving me no choice but to park some considerable distance from my front door. New research has revealed just how much councils pocket from residents’ parking permits. According to the RAC, which surveyed almost 1,800 motorists and obtained details of council receipts from permits using the Freedom of Information Act, councils have almost

My parents are lucky. They’re in their 60s, mortgage-free and not bogged down by any personal loans. But if new research is to be believed, they are likely to be one of the last generations to enjoy this financial freedom in retirement. Saga Personal Finance has found that one in eight of the over 50s still has a mortgage. And the figure for so-called ‘second-lifers’ – people aged 50 and above who have children with a new partner following a previous marriage or long-term relationship – is one in five. There’s more bad news. The average mortgage debt owed by second-lifers is significantly higher than the typical amount for people

Savers have been handed some much-needed support at the start of the new tax year, but the number of government initiatives could actually be discouraging people from saving their cash. The Personal Savings Allowance (PSA) was announced in March’s Budget and took effect at the start of the 2016/17 tax year. Under the new rules most people will be able to earn tax-free interest on their savings. Previously all cash which was not placed in an Individual Savings Account (ISA) was subject to tax at the same level as an individual’s income. Now anyone with taxable income of less than £17,000 will not pay any tax on their savings interest, regardless

Rising house prices and a lack of properties has prompted many homeowners to improve rather than move. And who can blame them? According to the latest Halifax House Price Index, property values took a massive leap in the 12 months to the end of March, rising more than 10 per cent to £214,811. This is the biggest rise since July 2014. It’s no wonder that homeowners are deciding to improve their own property rather than make do with the lacklustre stock on the market. But spare a thought for those on the receiving end of an eager neighbour undergoing renovations. As more people decide to make improvements, many could find themselves facing disputes

Savers are wasting a fortune by keeping their money in cash only. They may as well be burying the £735 billion they’ve collectively put by in a sock in the back garden for all the good it’s doing them. The figure was revealed by investment platform Selftrade, which also found that 62 per cent of savers leave their money in cash. Of those who have bank and building society accounts for the money they squirrel away, two-thirds keep it in their current account, just over half use ISAs and 16 per cent have a piggy bank. Only a quarter of British adults hold investment products, according to the company, and only

Proof, if proof was needed, earlier this week that property prices in the capital are out of control. Research by Savills estate agents found that house prices in the London commuter belt increase by more than £3,000 for every minute the property is closer to the city by train. What’s that you say? £3,000? Per minute? In the North of England that would buy you six months rent in an attractive suburb of a major city. Add into the equation that the average house price in inner London is £606,000, and house prices across the country continue to climb – the UK average is more than £212,000. No wonder then that

If you’re not familiar with the nuances of the insurance industry (and quite frankly, who is?), then the name Flood Re may seem odd. It’s the moniker given to a new government-backed scheme designed to help homeowners in flood-stricken areas reduce their insurance premiums. Launched yesterday, Flood Re is the first of its kind in the world. A joint initiative between the insurance industry and the government, its title derives from the word ‘reinsurance’. It’s essentially a type of company that allows insurers to insure themselves – in this case against losses because of flooding. Put simply, the higher cost of insurance associated with flood-risk areas is passed on to Flood Re,