Lending figures expected to see mixed reactions

Over the past decade Britain has become addicted to borrowing, and up until the onset of the global credit crisis most people – including those with damaged credit – were able to get finance pretty easily with banks and financial institutions eager to loan money to anyone that wanted it. This has, of course, resulted in a huge personal debt mountain that has left many people struggling with their finances and unable to keep up with their debt repayments.

The Bank of England is set to release figures later this week relating to mortgage lending and consumer credit. It is widely thought that the figures will show that lending and consumer credit levels are very low. It is thought that whilst some people will find that the figures make for very bleak reading indeed there are many others that will see the subdued lending data as a positive sign.

Many city officials are likely to see the low lending levels as something that could dampen the economic recovery and reduce consumer confidence levels. However, some people will see them as a sign that Britain is not as addicted to debt as it once was and that consumers are now focussing on trying to clear their debts and live within their means rather than borrowing money at the drop of a hat to buy things that they cannot really afford.

Peter Dixon, strategist at Commerzbank, said: ‘Within the context of rebalancing the economy away from personal debt, these low figures may be no bad thing. Those who argue that borrowing should be stronger are missing the bigger picture.’

Ross Walker, economist at Royal Bank of Scotland, said: ‘The British household sector needs to de-leverage. This is happening, but at a snail’s pace. That said, a more rapid correction would probably be associated with recession in consumer and property markets.’

Tags: Britain, credit, mountain, drop of a hat, week, city, business, decade britain

Consumers warned about getting foreign currency at the airport

For many people that lead busy lives organising foreign money in time for their holidays can be difficult, and many cannot find the time to get this done. Read more

Tags: city, airport currency exchange, travel, economics, buying, finance, Dynamic currency conversion, foreign currency

On yer bike for cheap insurance, says AA

AA Insurance has said that people can save money on their insurance premiums by switching from cars to motorbikes.

The insurer went on to say that using a motorbike “makes sense” for other reasons, such as being able to get around inner city areas more easily.

Bikers can also benefit from not having to pay the congestion charge in London and bikes are easier to park as well as being “somewhat cheaper to insure” than cars, according to AA Insurance public relations manager Ian Crowder.

The idea has already crossed some people’s minds, as 14 per cent of women have said they would consider swapping their car for a motorbike to save money, according to statistics released by the Post Office this month.

Almost a third of people (29 per cent) who ride motorcycles said they did so because it was cheaper than keeping a car.

However, Mr Crowder said he did not think there would be a vast increase in the number of bikes on the roads

“People aren’t abandoning cars in favour of bikes, what they are doing is perhaps getting a bike so they can commute because riding a motorbike is a solitary occupation.”

Tags: number, cars, office, london, Insurance, city, public relations

Europe-bound stags and hens should be covered, Confetti says

A combination of low air fares and heavy media promotion has made foreign destinations for stag and hen parties increasingly popular, with Eastern European locations such as Prague and Tallinn particular destinations for bargain-hungry boozers.

However, a leading events organiser says today that travel insurance is a must for those going on such short breaks.

Confetti says that it is “just not worth it” to not take out cover, with an accident or injury proportionally more likely to occur on a boozy weekend away.

PR manager for Confetti Carol Richardson said: “It’s not worth having things spoilt. You never know when things are going to wrong, unfortunately. And it’s just not worth it these days.

“With the erratic weather that we’re having and situations at airports across the world, it’s well worth taking out insurance, just for peace of mind.”

UK consular officials in the Czech Republic capital and stag and hen party hotspot Prague also said earlier this month that they received a “disproportionate” number of calls relating to hospital visits and arrests, thanks to the stag and hen parties that flock to the historic city.

Tags: Czech Republic capital, bargain-hungry boozers.However, disproportionate number, world, manager, Carol Richardson, events organiser, city

House prices to rocket by 40 per cent, new report claims

A sobering new report suggests that house prices will rise at a rate of 40 per cent in five years.

According to a report entitled Home Truths, published today by the National Housing Federation (NHF), average house prices could soon top £300,000, dashing the hopes of millions of potential first-time buyers.

The current UK house price inflation rate stands at 9.9 per cent for 2007, according to latest results from Nationwide.

Home Truths, which used research conducted by Oxford Economics, provided a searing assessment of the current housing situation in the UK as “distorted” and “dysfunctional”: citing statistics showing that the average house price represented nearly 11 times average salaries.

The report suggested that the situation will worsen the most in London, with prices distorted by soaring city bonuses and an influx of the international super-rich: a full £150,000 price rise in the average home was predicted, taking the average figure to £392,900.

The (NHF) is an umbrella body, representing 1,300 housing associations in the UK.

Tags: city, umbrella body, cent, home, new report, influx, Nationwide.Home Truths, National Housing Federation

House prices make Olympic gains

London’s successful bid for the 2012 Olympic Games has driven house prices up in parts of the city.

Since the announcement, three London postcodes, all of which are close to Olympic sites, have seen property prices rocket by around 15 per cent.

Leytonstone (E11) properties have risen in price by 23 per cent since mid-2004, while homes in Hackney (E8) are 21 per cent more expensive and Clapton (E5) has seen an 18 per cent rise.

The figures, which have been collated by Halifax, are inline with those seen in previous Olympic host cities. Barcelona, Atlanta, Sydney and Athens all saw house prices rise above the national average in the build-up to the games.

Although rising house prices may not make good reading for anyone looking to take out their first mortgage, Tim Crawford from Halifax says now is the time to invest in these parts of London.

“London’s winning Olympic bid has boosted regeneration spending in the East End and this has had a positive effect on local house prices,” he commented.

“There has been an increase in interest from first-time buyers and investors alike. The strongest recent gains have been in Leytonstone and Hackney.

“Despite recent rises, there are eight postal districts close to the Games site where house price are more than 25 per cent below the London average, which highlights the area’s still relatively affordable property prices,” added Mr Crawford.

First-time buyers may find that investing in a property close to an Olympic site will prove to be a good investment, with the average Olympic city seeing prices rise by 19 per cent.

Tags: strongest recent gains, city, Economy of the Republic of Ireland, Geography, effect, games site, Olympic gains, average olympic city

£12m pad

At a time of ever-increasing house prices it is perhaps no surprise that a London apartment has just been registered as one of the most expensive properties ever.

A three-bedroom luxury apartment in London’s Belgravia has been snapped up by foreign buyers for a whopping £12 million.

That means every square foot in the apartment is worth £3,000, making it one of the most expensive properties ever, according to estate agent WA Ellis.

The owners are getting all the luxurious comforts you would expect for such a large figure, with a marble master bedroom and a 52-inch plasma TV included.

The main reason for the huge price tag however, is a simple case of demand heavily outweighing supply.

“Everyone wants to come here and most of it is City-fuelled,” Daniel Wiggin from WA Ellis told the Press Association.

“Belgravia, Knightsbridge and Chelsea seem to be among the most popular areas that they want to live in and we have an immense lack of stock – a shortage of supply and a vast amount of demand.”

Tags: pad, city, luxury apartment, knightsbridge, master, case, chelsea