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Archive for June, 2011

High street shops disappearing en masse

Thursday, June 30th, 2011

The drastic effect austerity measures are beginning to have on homeowners across the UK has been aptly demonstrated this week by the collapse of several High Street chains. Households all over the country are now looking more closely at their spending power and looking for bargains such as two for one offers in the supermarket, buy one get one free offers in markets and cheap home insurance when it comes to home security.

A catalogue of big names

The shops that have gone into administration this week include Jane Norman, a fashion outlet at the higher end of the price scale, TJ Hughes a High Street Department Store chain, Moben the high end kitchen retailer and iconic store Habitat, who announced that 30 of their 33 shops would be placed in administration with only the London stores surviving. Two other major names in the retail trade, Carpetright and chocolate manufacturers Thorntons have announced that many of their stores will be closed in a bid to see out the downturn.

Middle England suffering

It is no coincidence that many of the retailers in trouble feature at the high end of the market. For many years economists have said people always look to cut out luxuries first when they find their budgets are being stretched, the truth in this observation is hitting home with a vengeance at the moment. Of course this is qualified by the fact that it is Middle England that is feeling the pinch and not the super rich. Merchants selling goods at the very top end of the market will probably escape the clutches of a recession as their customers are well protected from all but the very worst of bad times.

Nervous times for all as the cuts hit home

It is 15 months since the Coalition came to power with promises of austerity measures the likes we have not seen for many years. For the first 12 months of their Parliament it seemed as though only the housing market and public service jobs would suffer. NHS managers were told they would be losing their jobs and the stagnation in the housing market meant very few home insurance salesmen were taking home big bonuses, but it seemed a bit of a phoney war. It is phoney no longer. The strike by public sector workers on Thursday will be worrying a Government that is looking nervously over its shoulder at what is happening in Greece and economic commentators are openly questioning if the Coalition were right to insist on such heavy cut backs. The next six months will be vital in determining if George Osborne got it right.

Tags: Administration, cheap home insurance, Closing down sales, Spending
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Wallpaper or paint?

Tuesday, June 28th, 2011

With many homeowners accepting that a proposed house move is now out of the question because of the current stagnation in the property market, they are turning instead to improving their current home to make it more suitable to their needs.

Fresh outlook created quite easily

It is surprising what a coat of paint or a roll of new wallpaper can do to a house and a room facelift will often leave homeowners wondering why they wanted to leave in the first place. It doesn’t have to cost a fortune and it allows homeowners to experiment with new ideas, although it is always best to check ones home owner insurance if the new ideas are quite radical.

Wallpaper makes a big impact

Wallpaper is generally considered more aesthetic than paint. It adds so much character to a room and a Victorian style house without wallpaper would be just unimaginable. It has a nice and warm texture that is incomparable. However, as it is so characteristic it can dominate the room and sometimes it may be difficult to arrange or change your furniture, accessories or even pictures. Remember though that wallpaper is not strongly associated with a contemporary look so it may not be considered “the in thing” at the moment. It does add value to your home but may not be everyone’s cup of tea.

Paint is an easy option

Paint may not be as aesthetically strong or pleasing as wallpaper but simple wall decoration is more flexible and easier for interior coordination. This is why paint is the most popular and practical wall treatment at the moment. If you would like some texture you can apply textured paint or faux finishes. Many decorators will choose to go with an “accent wall” by painting one of the walls in the room a different colour. You can even have a mural wall or two if you wish.

Which method is the most economical?

Wallpaper is more costly and time consuming to apply than paint. However, it may prove more cost effective in the long run as once applied it should last up to 10 to 15 years, while paint may need more frequent applications. Wallpaper application must be precise as the patterns need to match. It can be easily soiled or damaged and may peel in humid conditions. Once damaged it can be costly to replace unless the accident is covered by household insurance.

Background or forefront?

With paint it is easy to hide imperfections and if part of the wall is soiled or damaged it can be quickly repainted and fixed. You can change colours as you like, it can give your room an instant makeover. The important point to remember is that in many cases the purpose of paint is to be almost invisible while the purpose of wallpaper at all times is to be on display.

Tags: Home Insurance, interior decor, property market, wallpaper
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National database will be welcomed by the public

Thursday, June 23rd, 2011

Homeowners in the UK will be delighted to know that at long last a national crime database is to be launched. The National Police Improvement Authority (NPIA) will oversee the database that goes live today and it means that over 50 police forces in England and Wales can share information on the activities of criminals.

Database may cover for loss of neighbourhood constable

It will come as a relief to many people who worry constantly about security in their own homes even though they have good buildings and contents insurance. At a time when whole areas are losing their neighbourhood “bobby” the fact that regional forces can share information with each other will reassure property owners to a certain degree that they are not being abandoned.

Serious crime will be prime target

Of course the national database will be seen as a resource for the solving of serious crime primarily, and indeed the idea was first mooted by Lord Bichard in his enquiry into the murders of two young schoolgirls in Soham in 2004. The fact that police forces will be able to identify crime patterns nationwide though, should also help in tracking down criminals who specialise in house crime.

Database access will be vetted

The NPIA will strictly monitor the use of the new database with only about 1 in 100 policemen having access to it. The networked computers will be stored in specially designed “bunkers” that will be thoroughly secured to the point of being windowless, and only people who have been given special passes will be admitted. Each force will be able to decide what information they make available on the database and Policing minister Nick Herbert was quick to reassure civil liberty groups that measures would be put in place to ensure victims of crime were not put at further risk by the process.

System will help in the fight against cyber crime

It is thought the database will also be a big help in the battle against house crime. Many people are now robbed every day from an action that takes place in their home but is probably committed miles away. Online crime is now costing home owners millions of pounds each year and many householders have no idea they have been robbed until they check their bank balances at the end of the month. This database should also identify the fraudsters and scammers that use the internet to trap their victims.

Tags: crime, Cyber Crime, National database, National Police Improvement Authority
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Vendors must get a grip on reality

Tuesday, June 21st, 2011

The frustrations of prospective house buyers looking to purchase a home of their own may soon be coming to an end, or at least may be eased a little. The latest report from giant, online estate agent Rightmove, is suggesting that house prices will soon starting dropping like a stone as homeowners looking to move on become more realistic. There is a real chance that new home insurance deals will become more commonplace towards the end of this year.

Vendors turning a blind eye to the market

The report by Rightmove is something of an eye-opener. Although the industry has been stagnating for well over a year, due to a number of factors that have all been making headlines in the press throughout the year, vendors putting their homes up for sale are still asking more and more for their properties. Incredibly Rightmove reveal that the average price of a home going on sale has risen every month in 2011 and is now 8% higher than the start of the year, a year that has seen mortgage approvals drop by half.

Asking price rocketing

At the moment the average price of a home for sale with Rightmove is slightly over £240,000, at the beginning of the year it was £223,500 and although it must be understood that many sellers will have hiked up the asking price because they were aware that buyers would automatically offer less than the brochure price, Rightmove believe June may be the month that sellers finally get a grip on reality and start to place their homes at a marketable price.

Reality will set in

Rightmove are convinced the fact that estate agents across the country are reporting more unsold properties on their books month by month because of the shortage of buyers, will start to sink in with those desperate to sell, and that prices will drop by around 7% in the second half of the year. This is just the news that many people are waiting for.

Banks slowly loosening purse strings

The difficulty prospective buyers have encountered when trying to arrange a mortgage has forced many into taking out rental house insurance on a let until the situation changes, and banks do seem to be slowly grasping the fact that people can’t afford what they are asking. Some loan providers are beginning to offer mortgages requiring only a 10% deposit without the interest rate being too prohibitive.

Basic ingredients are there

A noticeable drop in asking prices, a realistic approach to lending criteria by the banks, and low interest rates guaranteed for the short term at least, could just be the catalyst for the housing sector to gain momentum.

Tags: Home Insurance, House buyers, house insurance, rental insurance, Rightmove
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Homeowners cutting back on home improvements

Thursday, June 16th, 2011

A recent online survey of homeowners has revealed that many are now actively looking for ways to save money, as the realisation that the drop in their standard of living is not going to be a temporary blip, starts to hit home.

Many homeowners delaying projects

The survey carried out by a company that deals with home insurance quotes showed that almost a third of those questioned in the survey said they were putting off maintenance projects that really should be done, while over 50% said they would consider doing jobs themselves if it meant they would be saving money.

It’s not only maintenance jobs that are being delayed, of those questioned 1 in 5 said they had delayed the fitting of a new kitchen, while 1 in 6 said they had put off the installation of a new bathroom.

Difference between cosmetic change and urgent repairs

Of course it makes sense to delay home improvements that are simply cosmetic makeovers. If the family budget is being stretched, there is no point in spending cash that has to be borrowed when you are not sure how you are going to pay it back. Either do the job yourself, you can literally save thousands of pounds doing this, or try and put up with a dowdy room until your financial position improves.

Putting off home repairs is somewhat different however. If heating radiators are in need of repair then it is best to find money for the job. The radiator may leak and damage carpets and flooring which then becomes altogether more expensive, and even if you are covered with home contents insurance the resulting claim will see your future premiums rise. A leaking roof or window can mean even more trouble.

Cancelling insurance could be playing with fire

The survey also revealed that 1 in 12 homeowners were actually thinking of not renewing or possibly delaying their home insurance policies in a bid to save money. It is a dangerous option! We take out insurance basically to cover for the unexpected, and unfortunately the unexpected always happens when we least expect it, you can almost guarantee that delaying renewing a policy will invite accidents to happen.

Legal obligation

Another thing for those considering such an option is to remember that if the home is mortgaged the lender will legally require you to have a buildings insurance policy in place.

Tags: Cutting Back on Home Improvements, DIY, home improvements, Home Insurance, Home Insurance Quotes
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Consumers feeling the pinch

Tuesday, June 14th, 2011

Homeowners across the UK are feeling their financial purse strings gradually tightening as inflationary pressures continue to mount. The pursuit of cheaper home insurance, bargain buys at the supermarket, and cut price holiday offers are becoming ever more important for those who don’t want to see a drop in their standard of living.

Retail giants seeing sales slow dramatically

With new inflation figures set to be released by the Office of National Statistics (ONS) today, sales figures released by two of the UK’s biggest retail giants, Argos and Tesco recently, show just how difficult consumers are now finding the struggle to maintain their spending power.

Public buying less food so they can feed their car

Tesco announced this morning that for the second quarter in succession they have missed their sales targets on UK based stores. The underlying trend for stores in the UK that have been open for more than a year came in at -0.1%, this follows a -0.7% drop in the previous quarter and is considerably less than the 0.6% increase they anticipated. Tesco analysts believe that shoppers at their stores have cut back on food items, particularly fresh produce, to counter balance the extra cash they are forking out to fill up their cars at Tesco Fuel Stations. It is becoming more obvious daily that the austerity measures introduced by the government coupled with inflation fuelled price rises are impacting heavily on the general public.

Electrical goods losing their spark

Retail stores that rely on the discretionary spending power of consumers are being even harder hit. The Home Retail Group, owners of Argos, recently reported a drop of almost 10% in like for like sales on the first quarter of 2011 compared to the previous year. The collapse in sales of high value electronic items such as TVs and game consoles was the main factor according to the group’s chief executive.

DIY projects seen as money savers

Perhaps another indication of how the downturn is affecting the general public came from the figures released by the same group. While Argos stores took a beating over the quarter, Homebase DIY another part of the group actually showed an increase in like for like sales of 1.6%. A comment perhaps that homeowners are turning to DIY solutions for upgrading their properties safe in the knowledge they are covered by home insurance rather than bringing in tradesmen to do the jobs for them.

Tags: cheaper home insurance, retail giants, Saving Money, supermarkets
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Food bills set to rise again

Thursday, June 9th, 2011

The need for UK homeowners to search for cheap home insurance offers will become more pressing over the next few months as essential products such as food and energy look set to soar.

Energy Company weakens consumers spending power

The news this week that Scottish Power are hiking their gas charges by 19% and electricity by 10% should have sent nervous shudders through the halls of the Bank of England (BoE) and indeed the Houses of Parliament. Consumers who have been fed a diet of unpleasant news about the economy for many months will wonder just how things can get any worse, they will be looking more and more at the Government to get things right.

Cost of living increase

The same day of the shock announcement by Scottish Power brought news that the cost of living has shot up in the last 12 months with food inflation now nudging 5%. With salary increases as rare as a poor MP in the country at the moment, residents of the UK are now beginning to realise that their standard of living is dropping and looks set to stay that way in the near future.

Price rises beyond our control

Of course the escalating price of fuel is driving up food costs more than anything else, transporting the food to the shops is becoming more expensive and in the cut throat competition of the major supermarkets profit margins are so thin that the costs have to be passed on to the customer. Experts reckon food inflation will cost the average family around £250 over the next 12 months, about the same price as a good home insurance policy would cost. Unfortunately, some families will be forced to make a choice between the two. Yet another reason for the increase in food prices is the weather and, for a change, not ours here in the UK. Staples such as wheat, sugar, coffee and rice have all shot up in cost over the last few months due to drought, flood and storm damage in different parts of the world.

Interest rate change most unlikely

Today the BoE will make a decision on the base rate of interest. It has been at a record low for over 2 years now and in light of the continuing bad news for consumers it is certain that savers looking for more interest on their money will have to wait a little longer. The economy cannot take a rate rise just yet and no one expects Mervyn King and his team to change the status quo.

Tags: cost of living, food costs, Home Insurance, money, supermarket
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Say it with flowers

Tuesday, June 7th, 2011

It is fairly true to say today, that anyone who has managed to find the deposit to buy a new home will take great pride in presenting their new abode in the best light possible. There are plenty of essential costs such as furniture, energy bills and home insurance when moving into a new home so finding a way to “dress” your home cheaply is a bonus. Flowers will add a freshness and presence to any room without costing the earth.

William and Kate not typical

We saw Prince William and Kate Middleton wed at Westminster Abbey where real trees were installed to form an “avenue” and 30,000 fresh flowers were brought in to adorn the place. For couples on a modest budget however it is not uncommon to use silk flowers for the wedding or indeed for any other memorable occasions such as anniversaries and ceremonies. They will also work in keeping a home looking attractive.

Fake has its advantages

Many people may have a stigma about using silk flowers, foliage or artificial plants and think that they look tacky, but they have many benefits. They are usually cheaper and thanks to the latest floral reproduction technologies many available these days look very realistic and lifelike. They last almost forever so can be kept as mementos. They are very low maintenance requiring no watering, feeding or re-potting but just some occasional dusting. Most are hypoallergenic and so are perfect for people who suffer from pollen and fragrance allergies. It should be noted that some hospital wards do not accept fresh flowers anymore because of allergies they may cause and the maintenance needed.

They are even good for flower arrangement. As the stems of most artificial flowers can be bent and twisted you can be creative and arrange unique and unusual styles. As they do not wilt it is possible to leave the arrangement unfinished and come back at a convenient time. Moreover, if kept in good condition they can be reused and there is no chance of pollen stains or water spills necessitating home insurance claims.

Real thing has a special appeal

The disadvantage to artificial flowers is of course that they will always be the substitute, not the real thing. The freshness the real flowers and plants bring to a room – the smell, the colour and the touch – cannot be replaced. They can brighten up the room in the way that no artificial flowers or plants can do and there is a joy in nurturing, growing and looking after plants which for many people can be irreplaceably rewarding.

Tags: artificial flowers, Home Insurance, interior decoration
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More gloomy news from the CML

Thursday, June 2nd, 2011

The level of home owners likely to see their homes repossessed by loan companies is predicted to rise this year as the effects of the government cuts, inflation fuelled energy prices and basic bills such as home insurance costs nudge thousands of homeowners to the edge of bankruptcy.

Increase will last for two years

The prediction by the Council of Mortgage Lenders (CML) is yet another piece of bad news from an organisation that of late seems to specialise in that department. Last month the CML announced that the level of borrowing in the month of April was the lowest it had been in any April for 20 years which caused a collective groan amongst estate agents nationwide. Yesterday’s grim figures suggest that the number of homeowners who will metaphorically have the rug pulled from beneath their feet this year will be around the 40,000 mark, an increase of 4,000 on 2010 figures, and if that is not bad enough, the figures for 2012 or even worse. They predict that 45,000 will lose their homes in that year.

Thousands more affected

It is the first time since the fortunes of the economy started to go downhill that the CML have actually predicted for a longer period than 12 months, which does make one wonder if they are actually getting quite fond of releasing bad news. However, the ones who will be really hit hard are those homeowners who find they can’t make up their arrears. The figure of 9,000 more mortgage holders losing a grip not just on their finances but the bricks and mortar around them in just two years is a sad reflection of just how hard the austerity measures are beginning to bite; it is in effect a 25% increase in the number of homes going under the hammer at the behest of county courts.

Small percentage but massive consequences

In all, the figure of 45,000 is less than 0.5 of all mortgages taken out in the UK, but that hides the real heartbreak felt by those who have to hand their keys back to the bank. Hard times usually see people cut back on items that perhaps they should think twice about. The level of repossessions suggests that home insurance in all its forms may be more valuable than some households imagine. It also suggests that loan providers who were persuaded by the Government to relax their rules on repossessions may now be preparing the nation for a change of direction.

Tags: Council of Mortgage Lenders, Home Insurance, home repossession, mortgages
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