Debt Management News
A study by Rightmove has found that the supply of rental properties is expected to expand this year, and as a result should lessen the pace of rental growth in 2013.
The property website estimates that about three in 10 landlords are in fact “accidental”, originally taking on tenants because of difficulties selling their house in the tough economy.
Miles Shipside, director of Rightmove, said: “Overall supply of greater rental property coming on tap is good news for tenants as it is likely to lessen the pace of rental growth in 2013.”
“Many of those accidentally thrust into the landlord arena have not only survived but thrived in many instances.
“The growth in rental demand and appeal of the buy-to-let sector to lenders has helped turn a chance encounter with the rental market into a further and valuable source of fresh supply.”
A survey by McCarthy & Stone has revealed that 60% of over 60’s aren’t concerned about leaving money to their families in their will as they plan to spend their cash rather than save.
At a time where older people are really feeling the pinch, more than half of those who took part in the survey said they were so concerned about their financial future that they had sat their children down to discuss potential eventualities.
Ali Crossley, Executive Director of McCarthy & Stone, said: “As experts predict that life expectancy will continue to increase, people cannot afford to bury their heads in the sand about the way they will manage financially in their retirement years. They need to discuss these issues with their family and put clear plans in place.
”Our research shows that although many older people worry about how they will cope in later life and do not want to become a burden to their children; a concerning proportion of them do nothing about it.
”There are many reasons why people of all ages may not make a will, ranging from concern about legal costs to apathy and a fundamental misunderstanding about what will happen if they die intestate without a will.”
A survey by Aldermore Bank has revealed that typical parents-to-be will have an average of £2,547 stored away ready for their new arrival, as one in two couples believe it is important to have savings in place before starting a family.
It found that most of the money saved goes on essentials such as buggies, cots and car seats. It also provides a cushion for any earnings lost if the mother was working before falling pregnant.
Simon Healy from Aldermore Bank said: “It is a wise move to start thinking about saving before you start to plan a family but it’s not always possible.
”The cost of having a baby can be a shock to the system, particularly the first time around.
”Not only do you have to consider the expense of baby equipment such as buggies, cots and all the other paraphernalia but you need to consider earning less whilst on maternity or paternity leave and even childcare costs if you are planning on going back to work.
The Policy Exchange Report has revealed that families living in the most deprived areas in the
UK typically receive the worse childcare than those living in wealthy areas.
The report shows that 77% of childminders in wealthy areas were judged “good” or “outstanding” by Ofsted last year compared with only 61% of childminders working in more deprived areas.
Under half (45%) of people earning less than £20,000 said that quality of childcare provider was important when choosing childcare providers compared with 60% of people earning over £40,000.
An analysis by the charity StepChange has revealed that the self-employed had average debts of 18.6 times their annual income, compared to those in part-time or full-time employment who carried average debts of 4.1 times their annual earnings.
It found that mortgages made the biggest impact in debt burdens, closely followed by credit card debt, which was twice as high for self employed people.
Delroy Corinaldi, a spokesman for the charity, said: “The unsecured debt levels of the self-employed indicate that people are taking on significant debts in order to invest in their businesses. However, with lower income levels, servicing these debts is likely to become increasingly problematic and too often the debt burden can become too much to bear.”
Figures from the British Bankers Association have revealed that mortgage repayments almost outstripped new borrowing in 2012, while unsecured debt fell by 1.6%.
The amount held in savings accounts also went up by 6.1% over the year, with inflows to cash Isas being particularly strong.
Howard Archer, chief UK economist at IHS Global Insight said: “Unsecured consumer credit still remains very low compared to long-term norms, and the impression remains that consumer appetite for taking on new borrowing is limited while there is also an ongoing strong desire of many consumers to reduce their debt.
“Consumers’ desire and perceived need to deleverage is clearly the consequence of ongoing serious concerns over the current state of the economy and still heightened worries and uncertainties over the outlook.”
1.4mn UK individuals have fallen into arrears on their mortgage or rent payments. YouGov for Shelter conducted research which has revealed that a large number of households are unable to afford to meet payments on their home. There has been, in fact, a 44% increase in those in this situation in the last 12 months, which shows how big of a problem this is becoming.
Chief executive from Shelter, Campbell Rob, said: “It’s shocking to think that so many families will be starting the new year with a huge weight hanging over them, trapped in a daily struggle to keep their home.”
19% of consumers in the UK have always stayed with the same ten most popular financial products.
Gocompare.com have conducted research which looks at how 9.5mn UK individuals are failing to capitalise on potential savings due to reluctance to seek out improved deals.
This is made worse by the fact that 64% of people expect a tough financial road ahead over the next year.
Gocompare.com business development director, John Miles, said: “Millions of consumers could be missing out on hundreds of pounds worth of savings by not reviewing their outgoings and switching to better deals.”
The Post Office Consumer Credit report, now in its sixth year, emphasises the dire financial situation surrounding many people in the UK as they are being forced to turn to their credit cards to meet daily needs.
UK adults were asked what they were using their credit cards for to purchase in January and the most common reply was grocery shopping at 42% with day-to-day purchases coming second at 35%.
Post Office head of credit cards, John Willcock, said: “While many people intend to manage their credit card purchases and repayments sensibly, there are still too many people who are not thinking of the consequences of their festive spending.”
More than one in three of UK individuals would fail to meet a random financial expense. The Office for National Statistics released figures which assessed UK poverty, as well as social exclusion, from 2005 to 2011.
The research showed that 21.4% of people in 2007 couldn’t afford to take a holiday. Four years later, this increased to 29.7% with the impact of the economic climate continuing to take effect on the ability to spend.
As a result, consumers throughout the UK may be in need of help to manage their finances and in particular, their debt, to prevent their finances from becoming unmanageable.
Families are taking advantage of Christmas presents they no longer need in a bid to raise funds.
A Lloyds TSB Insurance study has revealed that parents have the potential to make a maximum of £735 by selling their offsprings’ unwanted possessions.
80% have sold old toys to try and breathe some life into their bank balance with 61% having sold clothes, 46% selling CDs and 34% selling gadgets.
Retrocycling has seen an increase in popularity, which is why this has become possible with items such as Nike Air Jordans and games, including Twister, having proved to be huge sellers.
According to figures from LSL Property Services average rents fell across London and the South East during December, despite 2012 being a year where rent outstripped average pay rises.
The average rent in England and Wales was down 0.9% in December to £734, with London seeing a fall of 1.5% and the East of England and the North East dropping by 1.7%.
David Newnes of LSL said: “The amount owed hit levels not seen since last Christmas. In the absence of real salary increases in 2012, the additional burden of higher rents was met by tenants cutting back on other essentials.”