As UK house prices soar, first-time buyers struggle much more than mum and dad did June 12, 2018 A third of UK residents preparing to buy their first house are struggling to save enough money for a deposit – six times the proportion of people who bought their first house 20-30 years ago. That’s according to a 2,000-person survey carried out by self-storage company, Space Station, which asked 1,000 Brits who are currently [...]
Markets brace for the latest Bank of England interest rate decision May 1, 2018 Following a decade without so much as a hint of a rate rise, expectations are high for the UK’s second increase in just seven months. Most economists expect the Bank of England to raise the base rate to 0.75 per cent this month, up from the current 0.5 per cent. The UK’s economic picture is [...]
Small respite for household finances won’t last long March 21, 2018 The fall in Consumer Price Inflation (CPI) in February took a few people by surprise given it had hovered around 3 per cent since November. While a drop had been expected, CPI had not been expected to fall by as much as 0.3 per cent which in economic terms is substantial. While CPI remains above [...]
The lessons of the financial crisis have not been learned March 19, 2018 Last week, the Financial Conduct Authority (FCA) warned that household debt levels are very close to their 2008 peak and, more worryingly, that many households have borrowed so much that they may be out of their depth. "There are a significant number of households that are in so deep that the slightest sign of rough [...]
Why the younger generation can’t afford to buy their own homes in London March 16, 2018 In my 35 years as a property lawyer, I have seen a sea-change in the balance between ownership and renting. When I first cut my legal teeth, the Rent Act 1977 provided security for tenants and controlled rents below true market rate. As a result, there was little incentive for a prospective landlord to add [...]
Last Week in the City: Trump signs order for tariffs March 9, 2018 This week US President Donald Trump signed off on new tariffs on steel and aluminium imports, Trinity Mirror revealed plans to rebrand, and the European Central Bank took a further step towards ending stimulus measures. The FTSE 100 rose 1.9 per cent over the week by mid-session on Friday. Economics China will pursue annual growth [...]
UK housebuilder Persimmon’s profits to jump to £1bn as firm moves past pay controversy February 25, 2018 Persimmon’s profits are expected to jump close to the £1bn mark this week as the housebuilder continues to bat off criticism for the pay awards it handed to executives. Analysts are expecting pre-tax profits to rise 25 per cent, up from £775m to £965m, when the firm announces its 2017 figures on Tuesday. The news [...]
Brexit lurks behind the Bank of England’s sudden hawkishness February 12, 2018 Has the Bank of England developed a bit of a personality disorder? Looking at the mixed signals given by the Bank in the last six months, you might be forgiven for thinking so. The Bank’s Governor Mark Carney has a habit of keeping the markets guessing – something City analysts suspect he enjoys – and [...]
Marc Vlessing, CEO of Pocket Living on his mission to provide affordable compact homes for young Londoners December 8, 2017 Marc Vlessing’s eyes were first opened to millennials’ struggle to get on to the housing ladder when he was working in theatre. As CEO of Crescent Entertainment, which went on to become the largest group of theatres and cinemas in the UK, he was surrounded by passionate, hard-working people in their 20s and 30s, “but [...]
What will an interest rate hike mean for house prices? October 17, 2017 Inflation hit three per cent in September, adding fuel to the fire for commentators calling for a rate hike. There has been talk of a rate rise for years now, although it hasn’t moved above 0.5 per cent since March 2009. The Bank of England hasn’t increased the rate since December 2007, when it began [...]