More people renting

The number of people renting in the UK has soared in recent months as house prices continue to rise.

Figures from the Royal Institution of Chartered Surveyors (Rics) show that in the three months leading to January, demand for rented accommodation accelerated at its fastest pace for nine years.

Both flats and houses saw an increase in demand, with houses seeing the greatest change. Rics puts this down to increasing household incomes, which allow people to rent larger properties.

The organisation also points to strong economic activity, good employment conditions and a great deal of migration from eastern Europe as reasons behind the surge in rental applications.

However, it also highlights that concerns over affordability in the mortgage market have had an impact.

“With house prices still rising, the rental market will remain a ‘property purgatory’ for many would-be buyers unless accessibility and affordability conditions improve significantly,” said Jeremy Leaf from Rics.

“However, tenant demand will continue to rise as long as economic conditions remain strong.”

Many people find renting is a great way begin an independent life, however, it is worth considering how much you can afford to spend on rent if you plan on saving up for deposit.

Tags: Supply and demand, Royal Institution of Chartered Surveyors, property, years.Both flats, impact."With house prices, institution of chartered surveyors, rental applications.However

Insurers still have work to do

A new survey shows that most of us are pleased with the service we receive from insurers but many firms are still failing to deliver in specific areas.

The Association of British Insurers (ABI) asked thousands of people to take part in the Customer Impact survey and the results were generally positive.

However, despite the majority of customers (55 per cent) saying that they would be “extremely” or “very likely” to recommend their insurance firm to a friend, 20 per cent responded with a negative “not at all” or “not very likely”.

A massive 85 per cent of those questioned said that their company was easy to do business with, while 53 per cent were either “extremely” or “very satisfied” with the service they received.

Customers generally rated the insurance sales process as “very good” or “excellent”, with 58 per cent of people responding in this way.

Despite these positive figures, customers said that the thing most lacking in the sales process is clarity of information at the point of sale.

In addition, the complaints process was also highlighted as being in need of fine tuning, with four per cent of people having complained in the last 12 months and 50 per cent of these describing the handling of their complaint as “poor”.

“This year’s survey shows a strong position in several areas, and room for improvement in others,” said Stephen Sklaroff from ABI.

“Each company will review their own performance against the industry results, and where necessary take action to improve.”

Tags: Impact, industry results, year, sale.In addition, percentage, room, economics, British Insurers

First-time buyers going it alone

First-time buyers are becoming less dependent on their parents when it comes to getting onto the property ladder.

That is according to new research from Abbey, which shows that the number of us expecting help from our parents to put down a deposit has fallen.

Just 9.7 per cent of first-time buyers expect any financial help at all from their parents when it comes to purchasing a property, compared to 23 per cent six months ago.

Despite the move away from parents when it comes to securing your first mortgage, many people (45 per cent – unchanged in six months) still expect help from their parents when it comes to moving into their new home.

“The decline in the number of potential homeowners relying on their parents is a positive indication that first-time buyers are finding alternative ways of funding their homes,” said Nici Audhlam-Gardiner, head of mortgages at Abbey.

“However, despite the decline parents still have a large role to play. With one in ten people still requiring parental help to buy and over half still needing help on moving day, it’s not just the children that feel the financial burden of buying a home.”

The survey also found that the ideal home for those taking their first steps onto the property ladder is a country cottage, followed by a townhouse and a penthouse.

Tags: financial burden, deposit, Audhlam, decline parents, indication

New phone-driving laws

New laws concerning the use of handheld mobile phones while driving have come into force today (February 27th).

Stricter punishments will be dished out to those who are caught breaking the law as research shows that using a phone while behind the wheel greatly affects reaction times.

Previously an offender would have been hit with a £30 fine but now police will issue a £60 fine and three points on the lawbreaker’s licence.

The tougher penalties have received widespread support from most motoring bodies, with a wealth of research showing that using a handheld phone while driving is dangerous.

“Mobile phones are probably the biggest distraction, with research evidence suggesting that holding a conversation on the phone leads to drivers having similar reaction times to someone twice over the UK drink-drive limit,” said Andy Price from Zurich Risk Services.

“At 40mph, a concentrating driver will travel 13.3 metres before activating the brakes in the event of an emergency.

“A driver at the UK drink-drive limit will travel 20 metres and the sober, hands-free phone user will travel 22.3 metres before activating the brakes,” he added.

The introduction of the stiffer penalties is likely to lead to an increase in car insurance premiums for some drivers.

With an offender being hit with three points on his or her licence, it is extremely likely that insurers will bump up premiums for those caught using a phone behind the wheel.

Tags: mobile phones while driving, concentrating driver, car, Stricter, Andy Price, February, New phone-driving laws

Kids’ rooms are worth £14bn

The average child in the UK is now worth around £1,260 due to the number of gadgets present in his or her bedroom.

In total, the UK’s children have £14 billion worth of goods in their rooms, with one in ten parents admitting they have spent £2,500 on keeping their youngsters entertained.

Co-operative Insurance (CIS) carried out research into the matter and found that although parents are keen to keep giving their children the latest gadgets, very few update their insurance policy at the same rate.

“Many parents simply do not realise just how valuable the contents of their children’s rooms are,” said David Neave from CIS.

“It is important for people to regularly review the value of their home contents and if necessary increase the level of cover to ensure that it is adequate.”

The most common electrical item to be found in a child’s bedroom is a TV, with 21 per cent of parents saying they allow their child to have one so that they can watch their own programmes undisturbed.

The CIS research also reveals portable gadgets are becoming more popular among children. Around 60 per cent now carry a mobile telephone.

Mr Neave said that this too should lead to parents reconsidering their insurance policies.

“Parents should also ensure that they have personal possessions cover for those items which their children take out of the home; such cover can be provided simply, by adding it to the contents cover,” he added.

Tags: child, personal possessions, kids, uk, child's bedroom, realise

Costs may fall on 100% mortgages

The fact that many first-time buyers are taking out 100 per cent mortgages may be a good thing.

Many commentators and industry experts have warned that the mortgages are dangerous as youngsters are being saddled with large amounts of debt.

However, Ray Boulger, a senior technical manager at John Charcol, says with more people getting them, we will soon start to see 100 per cent mortgages that are value for money.

“Despite the furore surrounding the availability of mortgages reaching as much as 125 or 130 per cent of a property’s value,” he said.

“In actual fact, very few people qualify for that amount of money and the average plus size loan to value is more like 103 per cent.

“The good news for borrowers here is that as competition increases, the premiums usually associated with these kinds of mortgages should be reduced,” added Mr Boulger.

The rise on popularity of 100 per cent mortgages is down to an increased number of people going to universities, according to Mr Boulger, with more people coming away with debt which prevents them from being able to save up for a deposit.

It is predicted by the technical manager that the cost of borrowing on a 100 per cent mortgage will “come down by the year end”.

Tags: Ray Boulger, popularity, fact, mortgage, economics, year end, actual fact, borrowing

Travel insurance industry slammed in report

Millions of us could be going on holiday without adequate travel insurance due to hidden clauses in our policies.

That is according to the Treasury Select Committee (TSC) which carried out a report and found that many people are not being told exactly what they are buying when they take out insurance.

The TSC highlighted that there is “insufficient awareness” among consumers about clauses in travel insurance policies.

“All too often, exclusions are buried in the small print of insurance policies,” said John McFall, chairman of the TSC.

“Holidaymakers are risking damage to their health or considerable financial loss if they require treatment while abroad or repatriation to the UK.”

The report has caused a stir within the industry, with Which? calling it “damning” and saying that it reiterates “the urgent need for consistent regulation of travel insurance”.

“Which? research shows that travel insurance is being mis-sold and consumers aren’t being given the appropriate information,” said Mike Naylor from Which?.

“There is no reason why travel agents should be excluded from regulation.”

People planning a trip abroad are advised to take out travel insurance and Which? has compiled a list of tips to ensure that you get the right cover.

Declaring any information that may lead to a claim, checking cover limits and exclusions, looking out for excesses, reading the small print and informing the insurer of any medical conditions are all advised.

Tags: Types of insurance, trip, Financial services, travel agents, treasury, report, exclusions, adequate travel insurance

Pay as you go credit card

A prepay credit card is being trialled in Liverpool as the UK tries to tackle the problem of personal debt.

The Bread card, which is provided by Maestro, allows holders to put money onto it in much the same way that you top up a mobile phone.

Purchases can be made on the card, while money can also be withdrawn from ATMs. The key difference, however, is that you cannot get into debt or incur charges because the card will only let you spend what you have topped up.

The card is designed to help those who cannot get a bank account because they have previously handled their finances badly, are foreign nationals or are UK nationals travelling abroad.

“This card will give people the chance to rebuild their credit rating, which is great for those who get into a bit of a mess during their teens and early 20s,” said a spokesman for Bread.

“With such a big focus on Liverpool as the capital of culture, Bread thought the card would be perfect to launch in a city which seems to be growing more rapidly than any other in the UK.”

The scheme is set to begin in March or April and will run for around six months.

Tags: Payment systems, key difference, six months, foreign nationals, personal finance, credit rating, spokesman, bank

Drivers will pay the price for calling

Drivers who flout the law regarding the use of handheld telephones while driving may find themselves paying for the act twice.

AA Insurance warns that offenders are likely to end up paying for the crime through their insurance policy as well as the increased fine.

As of February 27th anyone caught using their mobile phone while driving will be given a £60 penalty notice – double the current amount – and three points on their licence.

The AA says that this is likely to lead to more insurers taking their own action against offenders in a bid to protect themselves.

“While some insurers may ignore a first offence – as they may for a speeding endorsement – they are likely to significantly increase premiums for a second one,” said Janet Pell from AA Insurance.

“In addition, under the Rehabilitation of Offenders Act, the offence remains on your record for five years and insurers will take account of driving infringements over that period, even though endorsements can be removed from your driving licence after three years.”

The AA recently carried out a survey of eight insurers in which it found that half increased premiums by around 16 per cent for one speeding offence.

This number increased to seven for a second offence, while one insurer refused to offer cover.

AA Insurance is warning drivers that insurance firms are likely to adopt a similar approach to the use of mobiles while driving.

Tags: licence.the aa, Rehabilitation, half increased premiums, Insurance, Business and Economy

Lloyds TSB’s annual credit card charge

People with a Lloyds TSB credit card that they do not use regularly face being charged for the pleasure of owning one.

It is the first sign that banks may be seeking to recoup the money they are likely to lose as a result of pressure to cut penalty charges, as predicted by research firm Defaqto this week.

The bank has announced that people who do not use their credit cards will be hit with an annual charge of £35.

However, Lloyds has failed to reveal what they define as low-usage, meaning many people may find themselves in a state of limbo.

People who have a card but do not use it at all have been told in no uncertain terms that they will be charged and are being advised to cancel the card and destroy it.

“It costs the bank money to issue cards to customers who are not using them. This is intended to get them to start to do so,” a spokesperson from the bank told the Guardian.

In a bid to tempt consumers into using their cards more often, Lloyds is offering zero per cent interest on all purchases until May this year.

Earlier this week Defaqto’s head of banking, David Black, said that he would be “very surprised” if free banking was still available in the UK in two years time.

“The first major provider to introduce charges for all customers is going to take a lot of flak but it is likely that the majority of the main providers will then follow the lead,” he said.

If you have an unused credit card with Lloyds TSB make sure that you cancel it and, for security reasons, cut it up before throwing it away.

Tags: interest, limbo, majority, provider, research, Financial services, Credit Cards

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