British rollercoaster property market

Image from Toxi: http://www.iamtoxi.co.uk

Britain’s house price market has surged to its highest point in more than a decade.

According to the Office for National Statistics (ONS), house price growth is beginning to increase strongly across parts of the UK, with prices in London soaring by 11.6 per cent, which is more than double the UK average.

Campbell Robb, head of housing charity Shelter, pointed out how a ‘chronic shortage’ of affordable housing is preventing young people getting on to the property ladder.

In fact, it is the shortage of homes for sale to drive up prices, especially in the capital, and housing crisis is the main worry for 4 out of 5 Londoners, reports from a recent Ipsos MORI survey reveal.

According to a group of Labour MPs, not even a well-paid professional can now afford a mortgage for a family house somewhere in the capital.

In less than two decades, the increasing number of young adults still living with their family of origin has leapt by a quarter all over the country.

More than 3 million people aged between 20 and 34, which is equivalent to 26 per cent of the age group, are living with their parents, a report from ONS revealed.

However, London has the lowest proportion of stay at home adults, as a consistent number of people from that age group arrive in the capital from elsewhere, to either work or to study.

As if it was not enough, residential properties are predicted to rise by 27 per cent between next year and 2018, according to the independent office for budget responsibility.

In London, if they follow the current trend, they will rise by 50 per cent over the same period.

Communities need more homes and stabilised house prices. 

The Government should help to reduce competition between buyers, by up-scaling the level of construction and help tenants to become home owners.

Unless the situation changes, a consistent number of people will be left with no choice but to remain trapped in rented homes or to live with their parents, no matter how hard they work.

More jobs, lower wages

Image from Toxi: http://www.iamtoxi.co.uk/

Figures from the Office for National Statistics (ONS) show British economy grew 1.9 per cent last year, while the number of people in work is at record high of 30.7 million.

Prime Minister David Cameron tweeted: “The GDP figures are another sign our long term economic plan is working – more growth means more jobs, security and opportunities for people.”

Millions more are working, however, they are earning less.

In fact, real wages have fallen to their lowest level since records began in 2001. 

Also, growth has fallen to minus 2.2 per cent since the first quarter of 2010, the ONS figures show.

Trades Union Congress (TUC) general secretary Frances O’Grady said: “Britain’s workforce is getting larger but poorer.”

Unite Union’s general secretary Len McCluskey added: “Millions are struggling to pay households bills because wages are so low.”

While the squeeze on family incomes shows no signs of ending, the Bank of England interest rates will rise for the first time since 2007, if unemployment rate hits the seven per cent threshold.

The fact that record numbers of people are still working part-time, as they cannot find full-time employment, is another issue the Government should tackle soon.

There is still a long way to go to restore pre-recession living standards through better pay and more stable jobs.

Ms O’Grady added: “The real test for the Government is whether everyone will share in the recovery, not just a favoured few.”

Let's turn off the kettle!

Image from Toxi: http://www.iamtoxi.co.uk/

Most people all over the country have seen a rapid rise in the price of energy over the last few weeks.

All but one of the Big Six energy suppliers have already put their prices up by an average 7.4 per cent.

Energy firm Eon has announced that the rise will come into force on January 18.

Despite these suppliers promise to cut household bills, after the Government confirmed a shakeup of green levies last December, charges are too high for millions of customers that were already struggling before the latest price hike.

First Utility , Britain’s biggest independent energy firm that increased prices by 18 per cent in 2013, has suggested households a low-usage energy plan, to cut their gas and electricity costs by an average of £150 a year.

Tips include cutting down on hot drinks 2-3 times a week, cooking in bulk, having early nights and watching less TV.

While energy bills continue to rise at inflation-busting rates, the National Audit Office (NAO) has highlighted how most people are quite worried about energy costs.

Concerns raised after figures show 5million households in fuel poverty, that are spending more than ten per cent of their income on utility bills averaging more than £1400 a year

Firms should be helping customers make their homes more energy-efficient.

However, the green deal, that is a loan scheme for homeowners to make energy-saving improvements without spending any money up front, has not been a great success so far.

The scheme was meant to attract 10,000 people by the end of 2013, but figures show it helped only 219 households.