Consumers rely on lottery in case they lose their jobs

Whilst a huge number of us buy lottery tickets every week in the hope of hitting the jackpot or at least securing something substantial, the chances of actually winning big are minute and for the majority of us will never happen. However, despite this, recent research has revealed that there are many people who are hoping that a lottery win will sort them out financially in the event that they lose their jobs.

Worryingly, a large number of people now have no insurance in place to protect their income in the event of a job loss and are instead looking at other options to tide them over financially, with some stating that they would use savings, others relying on family and friend to help them out, and some relying on a lottery win to ensure that they can get by if their income is suddenly cut off.

The research was conducted by British Insurance, and according to the results, around 59 percent of workers were worried about the security of their jobs, which equates to around 17 million workers. This figure reflects an increase of 7 percent compared to the survey last year. However, fewer people now have any protection in place, with 20 percent of workers having protection in place last year but only 14 percent having protection according to this year’s survey.

One official from the company said: “Although we’re told the UK is coming out of a recession, this confidence is clearly not shared by the majority of workers. And with economists predicting that the economy will stagnate over 2012 or suffer a deep recession if the eurozone situation deteriorates, it’s advisable to have a plan to replace any future lost income without dipping into savings or falling into debt.”

Tags: recession, Recent research, eurozone, economists, Worryingly, future, Gambling

Mortgage lending starts to pick up

Over the past year mortgage lending in the UK has remained very subdued, having gone through a very turbulent and difficult period after the global financial crisis and recession wreaked havoc across the nation’s financial markets. Many people have struggled to get a mortgage over the past year or two, which has resulted in fewer people being able to buy property and far more people having to rent a home.

However, there is some good news on the horizon as recent reports have revealed that mortgage lending levels have increased for a third month in a row, sparking hopes that property sales could start to increase as a result of this. Approvals are now said to be 3 percent higher than they were in July of last year, which is promising news. However, many first time buyers will still struggle to find a deposit for a mortgage, which will continue to cause a problem on the mortgage and property markets.

Despite this news, figures relating to property sales have shown that so far this year property sales have been stagnating. Figures were released by HM Revenue and Customs, showing that in July there were 79,000 property sales. This was the highest number of sales so far this year according to the figures but it was still a lower figure than a year ago.

One economist said that compared to long term trends and norms housing activity was still very low at present despite increases in mortgage approvals.

He said: “With consumer confidence weak and the economic outlook currently looking pretty grim, we see little reason to change our view that modest falls in house prices are more likely than not over the coming months.”

Tags: property, term trends, outlook, economist, home, recession, July, horizon

Take out affordable home insurance

Most of us will know the feeling of having to cut back on outgoings, especially over the past couple of years, with the recession and the global financial crisis both taking their toll. For many a decision has had to be made with regards to whether they can afford certain services and purchases, and many have had to cut out services that they have always been reliant on.

However, it appears that one of the areas that some people are cutting back on is protecting themselves financially, and this includes taking out cover such as home insurance. This can, however, be a very costly mistake, and means that you could find yourself in hot water should something happen to your property or your belongings.

Your home and its contents are susceptible to a range of problems, from fire and flood damage to burglary or even damage caused by accidents. Those that do not have home insurance in place will suffer financially if they are not covered and something happens to their home or belongings. However, despite this there are more and more people that are now skimping on this cover and recent figures have revealed an alarming number of people in the UK who have no home insurance in place at all.

Fortunately, there are some good deals available on home insurance cover these days, which means that there is no need to go without this valuable protection, as you can find cover for a reasonable price. This will give you peace of mind and financial protection in the event that something does happen that results in damage to your home or your belongings.

When you choose home insurance cover you need to make sure that you get the right price, with premiums that you can comfortably afford to pay. However, you also need to make sure that you have the right level of cover, and that your home and belongings are adequately covered.

There may also be many people that do have home insurance cover but have not take an adequate level of cover out. It is important to consider whether you cover needs to be updated – for example, you may have received some expensive gadgets or items for Christmas that are now in your home but have not been included in your cover. Take some time to look at your policy and if additional cover is required get it updated.

Tags: crisis, Disaster Accident, good deals, reliant, price, recession

Double dip recession could stem from house price falls

Officials from the Royal Institute of Chartered Surveyors have stated recently that concerns over a double dip recession have been sparked as a result of house price falls. Earlier in the week the majority of estate agents reported that house prices had fallen for the first time in a year.

According to RICS there has been a surge in the number of properties coming onto the market whilst at the same time the level of interest from would be buyers has fallen as a result of a number of factors. This has sparked a drop in property prices following a period where property prices were regaining strength, and with the economy in the UK still fragile following the recent recession many are now concerned that the nation could be heading back towards a double dip recession.

The figures show that compared to the combined total of estate agents that reports stable or increasing house prices 8 percent more reports falling prices, and this was the first time since July of last year that a majority of estate agents had reported a fall in property prices.

Officials have said that falling house prices tend to take their toll on consumer confidence levels, and with a fall in consumer confidence there could also be an increase in the chances of a double dip recession. Scotland and the South West are said to be enjoying some level of stability, but all other areas of Britain have apparently been hit.

RICS said: ‘This is a reflection of both the increase in supply following the scrapping of HIPs and the more cautious stance from buyers. Significantly, the forward looking price expectations numbers suggest that this softer trend will continue through the second half of the year. However, agents are still generally optimistic about sales activity which should benefit from more realistic pricing of properties.’

Tags: house, Royal Institute of Chartered Surveyors, Estate agent, double dip, prices, recession

‘Bumpy’ recovery for firms in the UK

According to a recent report UK firms should be prepared for a bumpy ride to recovery over the course of this year. Despite a fall in the number of profit warnings over the final quarter of last year the accountancy company Ernst & Young has stated that the recovery for UK firms is still likely to b a bumpy and challenging one, and that companies needed to prepare themselves for this. Read more

Tags: scheme, economics, spending, recession, accountancy, contrast

Is quantitative easing working?

When the Chancellor of the Exchequer, Alistair Darling, first announced plans for quantitative easing in the UK he said that £75 would be allocated for the scheme with an additional back up of a further £75 billion if necessary. Read more

Tags: industry, thing, quantitative easing, chancellor, recession, economy

Gordon Brown promises to pull Britain out of recession

The Prime Minister, Gordon Brown, recently promised in a podcast that he would pull Britain out of recession.

His promise came after shock figures released recently revealed that the economy had once again shrunk by around 0.4 percent despite hopes that the economy had improved, which means that Britain is now in its longest ever recession. Read more

Tags: promise, shock, recession, britain recession, credit card sector

Mortgage Defaults on the Rise as More People Become Unemployed

According to experts at City the number of homeowners defaulting on their mortgage could rise to about 400,000 by 2011 with the number of unemployed reaching a high of 3.5 million.

Ed Stansfield of Capital Economics equates the results of the current recession to that of the early 1990’s. At that time the housing crash and the recession resulted in 350,000 mortgage defaults. He expects that the unemployment statistics for 2011 will exceed that of the early 1990’s because of the close association between job losses and the inability of homeowners to make their monthly mortgage payments.

Stansfield projects that unemployment figures will reach a staggering 3.5 million by 2011. Banks are reporting that there are signs that this prediction is very likely to become reality.

Reports from Lloyds Banking Group show that at least 20% of the customers are now in a state of negative equity where they owe more money on their home than it is worth on the housing market.

As of the end of June, 2009, the largest High Street bank in Britain says over 83,000 of its mortgage customers are currently in arrears, representing an increase of 26% from 2008. The figures of arrears at the Bank of Scotland have not yet been released, but Northern Rock, a nationalised bank reports that it has more than 22,000 customers in arrears.

The Halifax division of Lloyds, though, is reporting that they are seeing signs of improvement in the housing industry. This is based on the fact that house prices are on the rise. In July house prices rose by 1.1% to an average price of £159,623. In spite of this increase, however, house prices are still about 12% lower than what they were last year with an average home selling for about £180,000.

The Royal Institute of Chartered Surveyors warns consumers not to read too much into the data. According to a spokesperson for this institute, “There has been a clear change in the housing market in the last few months and as a result it is unlikely that we will now see the kind of house price falls widely predicted at the start of the year. However, the outlook for 2010 is fairly uncertain and there is a real risk prices may slip back. Affordability is still stretched and mortgage finance, while improving, is fairly hard to come by.”

There is no need to panic if you feel that you are in danger of losing your job and think that you may end up defaulting on your mortgage putting your home at risk. Those who are finding themselves facing unemployment should discuss options with their lenders so that they can find ways of being able to continue making their payments and enjoying a clean credit record.

Lenders do recognize that during this recession there are many people in financial difficulty and are willing to help them find ways of easing the burden.

Tags: Stansfield, Royal Institute, mortgage defaults, recession, increase unemployment

Charities Reporting Reduced Donations

The recession has been hitting all parts of the economy and now its effects are being felt by charitable organizations. According to a recent survey, charitable donations have been down by as much as 11% in April alone. Read more

Tags: long way, Voluntary income, recession, monies, charity donations

Rise in burglaries means more protection needed for households

Officials from the insurance industry have spoken out recently about the rise in the level of domestic burglaries during the recession, adding that it has become increasingly important for households to protect themselves from this sort of crime by ensuring that their homes are as secure as they can be. Read more

Tags: insurance sector, recession, percent, household theft, whammy

Blanchflower attacks King over recession

A former member of the powerful Monetary Policy Committee has recently launched a verbal attack on the governor of the Bank of England, Mervyn King, according to a recent report. Read more

Tags: david blanchflower, mpc, mrvyn king, recession, bank of england

Recovery of economy being affected by two major factors

Industry officials have recently stated that the recovery of the economy in the UK is being seriously hampered by two major issues, which have been highlighted as rising unemployment levels and the rising number of swine flu cases. Read more

Tags: new money, recession, publicity, whilst, industry officials, breakdown, economic recovery

Economy benefits from an additional cash injection

The economy is to benefit from an additional £50 billion, which is to be ploughed into the economy through the government’s quantitative easing programme. Read more

Tags: surprise, recession, better surveys, output, money, bank of england

King takes a stance on public borrowing

As most people are only too aware the public purse has taken a real bashing over the past year, with the government using taxpayers’ money for all sorts of measures in order to try and stabilise the financial system and improve the economy. Read more

Tags: Conservative Party, public borrowing, global downturn, recession, general election, financial

Which Age Group Has Been Most Affected by the Recession?

Although everyone has been affected by the recession in some way, recent research points to the fact that those between the ages of 45 and 60 have been hardest hit.

Read more

Tags: PricewaterhouseCoopers, age groups, recession, younger ages, mercy, Mortgage loan, age group, market

Middle aged and near retired people feel effects of recession most

It has been claimed that the age groups that are most likely to feel the pinch from the ongoing recession in the UK are those that are in middle age and those that are nearing retirement age. Read more

Tags: unemployment, economic slump, analysis, Labor economics, PricewaterhouseCoopers, uk, recession, late

Will recession be over by autumn?

It has been claimed in a recently released report that the UK industry could have pulled itself out of recession by as early as autumn of this year, after figures showed that there was an improvement in activity in May compared to April. Read more

Tags: activity index reading, score, output, CIPS, Business Finance, industry officials, double digit declines, recession

Recession in UK could almost be over

Officials from the National Institute of Economic and Social Research have recently stated that the recession in the UK has almost completed its course, and could soon be over despite concerns from other industry groups and officials that it could last for another one to two years. Read more

Tags: profile, growth, recessions, recession, National Statistics

Negative retails figures announced for May

Recent figures that were released with regards to retail spending have shown that whilst there were some encouraging signs of increased spending shown over the Easter period retail gains have slipped back down again for May. Read more

Tags: CBI official, retail figures, confederation of british industries, recession, consumer spending, Distributive, year

Job cuts will not necessarily mean recovery

It has recently been claimed that many of the financial companies, banks, and insurance firms that have been slashing jobs over recent months will not find that this necessarily puts them on course for a speedier recovery from the financial crisis. Read more

Tags: United States, industry, recession, job cuts, core employees, bid, recognise, Business Finance

Mortgage Approval Rates are on the Rise – Is the Recession Coming to a Close?

According to the figures from the mortgage industry for the month of March, it seems that lenders are once again starting to approve mortgages for homeowners. An increase of 16% in the number of mortgages approved in March seems to send a signal that the recession in the UK housing market may have bottomed out and is finally starting to rise once again. Read more

Tags: mortgage approvals, director general, housing market, council of mortgage lenders, mortgage industry experts

Credit crunch leaves High Streets more deserted

It has been claimed that the ongoing global financial crisis and the recession have resulted in the High Streets of Britain being left more and more deserted, as a rising number of shoppers decide to cut back on their spending. A recent report showed that an increasing number of people deserted in the High Street in March, as the effects of the difficult financial climate continued to take their toll. Read more

Tags: access, Experian Footfall UK National, credit crunch, lack, experian's senior uk, recession, recent report, shopping

Darling admits that he was too optimistic about the recession

Earlier this month the Chancellor of the Exchequer, Alistair Darling, boldly admitted that his initial predictions about the ongoing recession that has gripped the UK were too optimistic. Darling said that he had underestimated the recession, which he had originally predicted would be over by the middle of this year. In an interview with a leading national newspaper, the chancellor simply said ‘It’s worse than we thought’. Read more

Tags: optimistic story, Late-2000s recession, contraction, recent g20 summit, Late 2000s recession in Europe, recession, recent budget, chancellor

Air travel plummets in popularity due to credit crunch

According to a recent report the popularity of air travel amongst UK consumers has taken a real hit as a result of the global credit crunch, with fewer and fewer people able to manage holidays abroad. Read more

Tags: weakening, result, recession, overseas property ownership, air travel, number, difficult financial climate, credit crunch

Recession results in increase in liquidations

Officials from the Insolvency Service have recently reported that there was a sharp increase in the number of companies that went bust in the last three months of last year, as the recession and the global financial crisis continued to take a grip in the UK. Read more

Tags: year one, credit crunch, funding, industry, sector, grip, liquidations, recession

Branson not happy about bailouts for other firms

Successful and world renowned businessman Sir Richard Branson has recently expressed his views on the topic of the government using taxpayer’s money to bail out other businesses in addition to the financial industry. Read more

Tags: money, British people, richard branson, Bailout, Politics, Economic history, government bailout, recession

Jobless could exceed two million next month

Officials have recently reported that the number of jobless people in the UK could break through the two million barrier when figures are released in February, with figures for the latter part of last year showing that the spate of redundancies in the various sectors had already pushed unemployment levels up to 1.92 million. With a rise of 131,000 unemployed in the latter part of 2008 the figure soared to the highest number of jobless in over ten years. Read more

Tags: recession, recessions, stability, pensions secretary theresa, light at the end of the tunnel, uk jobs, unemployment rate, unemployment

Future bleak for economy in UK

According to business leaders the future for the economy in the UK is looking very bleak, with many claiming that in the final part of last year the economy experienced ‘frightening deterioration’. Read more

Tags: uk economy, Business Finance, consumer, recession, interest, rate, British Retails Consortium, part

Darling to optimistic about end of recession

Earlier this month the Chancellor of the Exchequer, Alistair Darling, indicated that there was a chance that the recession in the UK could be over by halfway through this year. Read more

Tags: business, United Kingdom, majority, revival, prime, international co

January sales may not end this year

Officials have stated that the January sales this year are likely to extend far beyond the traditional month, and will most likely go on for the rest of the year, giving consumers the chance to pick up bargains all around the year. Read more

Tags: financial climate, poll, retailers, key question, janauary sales, question, retail sales, recession

Recession could lead to rise in burglaries

A rise in burglaries over the Christmas and New Year period is something that concerns most of us. Many burglars decide to step up the pace over the festive season because this is the time when people tend to have more expensive items in their homes, such as gifts purchased for others or gifts received from others. It is also a time when many people are out of their homes visiting relatives and friends or socialising, giving thieves more opportunity to carry out burglaries. Read more

Tags: recent reports, opportunity, recession, phone call, growth, burglary, budget, insurance coverage

Where should you head on your holidays?

Whilst most of us are trying to make cutbacks wherever possible in the current difficult financial situation, most of us do not want to give up our annual treat of some time away on holiday. Read more

Tags: shorter period, family, bank, recession, advice, financial situation, holidays, whilst

Will you get through the recession?

With the recession underway in the UK many people are worried with regards to whether they will stay afloat financially. With living costs having rocketed over the past year, and the effects of the global credit crunch still affecting households, many people have been unable to put aside money in savings to try and get them through these difficult times, which is a fact that has caused grave concern amongst many. However, there are some tips and hints that could help you to get through this period. Read more

Tags: cheaper provider, tide, staffing, best account, recession, action, price

January sales start early on the High Street

With Christmas well on its way and consumer spending levels still low due to tight financial conditions, many major retailers on the High Street have started their January sales early by slashing the prices of their goods in the hope that it will boost spending amongst consumers. Retailers are slashing prices by up to 75 percent in some cases, hoping that their bargain prices will pull in customers and reduce the risk of shattered profits over what is expected to be a bleak Christmas in terms of spending. Read more

Tags: risk, festive season, sales, research, year, industry, retail, recession

Britain facing recession by end of year

Over recent weeks a number of industry professionals and groups have said that Britain will slide into recession by the end of the year. The latest warning comes from the European Union, which has warned that a number of countries face recession by the end of this year. There was also a stark warning from the Organisation for Economic Co-operation and Development, which said that Britain has the worst outlook of any major economy when it comes to growth. Read more

Tags: Economic history, Co-operation, key financial markets, Economic disasters, european, outlook, European Union, recession

Employers say economy at risk of recession

Employers from small and medium sized businesses in the UK have said that the economy is at serious risk of recession. The warning came after a small business survey was carried out earlier this month, with businesses warning that the economy could slide into recession within a matter of months. The survey showed that orders and sales for small and medium sized businesses in the manufacturing and services sector had been drying up over the past three months. Read more

Tags: day, interest, Late 2000s recession in Europe, recession, economy, bank, mortgage lender

‘We need to be doing much more saving’, says expert

With the economic downturn increasingly putting a strain on people’s finances, the country needs to “be doing much more saving”, an expert has advised.

Jamie Elliott, coordinator at Transact, which is a UK-wide network for people committed to promoting financial inclusion, pointed out that Brits have one of the lowest saving ratios in the world.

“It’s a huge problem and we need to shift from a culture of borrowing and seeing borrowing as the solution to our problem[s], to living within our means.”

He added that people should also be saving for “difficult times” and the financial industry will be making efforts to encourage this, for example by allowing people on low incomes to open bank accounts with the government adding a maximum of about £250.

Recent research by Credit Action revealed that total secured lending on homes was £1,207 billion at the end of April this year, which represented an increase of 8.7 per cent over the last 12 months.

Tags: business, Transact, problem, year, GBP, secured lending, lending, recession

Savings Accounts – Are They Worth It?

It wasn’t like that in my day

It’s an often heard phrase usually uttered by a disgruntled and crumpled pensioner about some aspect of modern life. Well, thank goodness it’s not like it used to be as far as savings bank accounts are concerned. They used to be pointless; today they are a little different. Read more

Tags: recession, saving, bank account, interest rates, savings accounts, leicester, Wise words