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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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Bank survey reveals sad plight of would be borrowers

Tuesday, May 31st, 2011

A survey carried out for the High Street Bank, Halifax, reveals today just how disillusioned a generation of workers in the UK are, and how they view the prospect of purchasing homeowner insurance as an ever dwindling dream.

Generation of tenants

The report shows that a whole generation is becoming reconciled to the fact that they may never be able to afford a home of their own, as banks make the qualifying criteria for getting a mortgage more difficult. The report shows that although the vast majority of 20 to 40 year olds want to follow in their parents footsteps and possess a home of their own they are quickly coming to realise that they are trapped in a financial straightjacket.

Huge survey, huge deposits, huge disappointment

The report is more worrying because of the number of people who took part. This was no bite size sample, over 8,000 were questioned and 9 out of 10 still aspired to have their names on a mortgage deed, however, the stress of actually applying for a home loan and the damaging effect on one’s credit rating when being turned down was turning more and more people away from pursuing their dream.

Of course the main factor quoted was the huge deposits most banks are demanding before they will hand out a mortgage, the report shows that many of those questioned had tried to save the cash but realised it was beyond their reach. It seems as though we now have a generation who through no fault of their own will be buying home contents insurance on a house they rent rather than one they own. It is not only a worry for them; it should be a worry for the banks.

Impact could be far reaching

If the UK suddenly becomes a nation of tenants then the banks will be bidding goodbye to a source of revenue that has kept them wealthy for a long time, mortgages have been the lifeblood of the Halifax and other banks for a long time. To this end the Halifax has declared to take action on the report by the National Centre for Social Research immediately.

New approach from the Halifax

A spokesman for the bank said it would have new measures in place by midsummer to give prospective mortgage applicants a comprehensive insight into its lending requirements before they start the process. It will involve prospective buyers being given a promise of the amount the bank will lend to them. The process won’t show on their credit report, and if their application is rejected, the reason why, with tips on how to become more successful in the future will be given.

Tags: banks, First Time Buyers, halifax, home owner insurance, mortgages
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Disappointing inflation figures set the scene for interest hike

Thursday, May 19th, 2011

After last month’s pleasantly surprising drop in the UK Consumer Price Index (CPI) to 4%, homeowners were once more given cause for concern about a rise in interest rates when the figures for April showed an increase of 0.05% to 4.5%. The figure was just as surprising as the March ones really but altogether more unpleasant.

Worrying times

The prospect of a hike in interest rates has once more been raised and consumers already paying over the odds for fuel, home insurance products and energy will be more than a little concerned.

Economists rewriting their scripts

The drop in last month’s figures coupled with the gloomy recovery predictions from Mervyn King, the Governor of the Bank of England (BoE) had led pundits to believe that the record low Base Rate of interest would remain the same for the rest of this year. They are now revising their forecasts once again with economists appearing in front of TV screens seemingly every day, voicing their opinions.

Been wrong before

November is now reckoned to be the time when interest rates will start to go up but city forecasters have been wrong before and just for an example of how wrong they can be the long term forecast for interest rates in May 2011 by a leading economist in August 2009 was actually 3.5%. That is some way out, and remember in August 2009 we already had rates of 0.05%.

5% the tipping point

Of course if inflation is at 4.5% now, then the predicted increases in energy costs in the autumn may well take them over what many see as the pivotal figure of 5%. Inflation over 5% would really point to the BoE as having lost its grip on the economy and would probably result in an interest rate increase.

Getting house in order now may pay dividends

How many homeowners will try and organise their finances around an interest rate hike is anyone’s guess, but the time may be right for consumers to get a new home insurance quotation if their policy is due for renewal and the same could apply in regard to their energy and home loan providers. Making sure one can manage the essential bills over a period of a few years can take a great deal of stress from the financial management of any household.

Tags: Home Insurance, Homeowners, Interest rates, Saving Money, UK Consumer Price Index
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Savers get the chance to find a new home for their money

Tuesday, May 17th, 2011

Homeowners looking to find an inflation proof home for their savings now have the chance to find such a place, courtesy of the Government financed National Savings and Investments (NS&I) department.

Tax exemption will allow savers to redress the balance

Savers who have seen their nest eggs slowly nibbled away by rising prices in the shops, at the forecourts, and even in their homes via increased charges for products such as energy and home insurance can now invest £15,000 into a five year savings bond that will guarantee them interest based on the Retail Prices Index (currently hovering at 5.3%) plus an average of 0.5% over the full term and the best thing of all is that the interest is tax exempt.

New bond the first for almost a year

The new bond issue from the NS&I comes after a 10 month period in which it stopped offering inflation proof bonds to new customers due to what it described as excessive demand. The March budget did make way for the NS&I to increase its bond selling by £2 billion and that is exactly what it is now doing. The bonds can be cashed in before the term if inflation falls, although everyone must hold on to them for at least a year. With interest levels ranging from RPI+ 0.25% after year 1 to RPI+ 0.86% after year 5 the Government department best known for its sale of Premium Bonds is expecting to be inundated with customers in the coming weeks.

Sweet revenge for those who were let down

Savers, particularly those who feel they have been let down by banks and building societies in respect of loan repayment rates when they looked to take out affordable home insurance on affordable homes, will no doubt take great pleasure in transferring their money from the High Street mortgage providers and into the Government coffers. The banks and building societies are not all happy about a Government Department muscling in on their domain and are now complaining about unfair competition. One gets the feeling the complaints may well fall on deaf ears.

Don’t delay

The new bonds will be especially attractive to top rate or even middle rate tax payers due to the tax exemption and prospective buyers will have to be quick off the mark.

Tags: Interest rates, money home insurance, savers, tax exemption
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Halifax reports big drop in house prices

Tuesday, May 10th, 2011

With the UK’s largest mortgage provider suggesting that house prices are beginning to drop significantly in price again, prospective buyers looking to purchase cheap home insurance on a property for the very first time may just see a glimmer of hope on the horizon.

Difference in figures surprising

With the Halifax Bank reporting that their House Price Index dropped a surprising 1.2% in April, compared to March figures, the likelihood of bargains a plenty are out there for those that can manage to get a loan. It should be noted, however, that the figures vary quite considerably from those supplied by the UK’s largest Building Society, the Nationwide, who last week said that there index suggested a fall of just 0.2%. Considering that both major players in the market base their figures on housing values placed on new mortgage approvals it is confusing as to why there should be a big difference.

That doesn’t change the overall picture though, and that is, house prices are still falling and although many prospective buyers would love to get a home insurance quotation on such properties, it is just not happening. The uncertainty of interest rates remaining at their record low level, the price hikes in the shops and garages and the uncertainty surrounding jobs, particularly in the public sector still seems to be having a profound effect on the general public. The situation is not helped of course by the fact that banks still seem very reluctant to lend unless a big deposit is secured.

Value dropped by one fifth

The Halifax confirmed that the latest drop means that the average price of a dwelling in the UK has now dropped 20% from the peak values of August 2007, a sobering thought for all those who bought at that time and also for anyone thinking about entering the realms of house purchase at the time.

Green shoots of recovery?

The Halifax did point out, however, that not everything pointed to further decline. The Royal Institute of Chartered surveyors (RICS) have reported a shrinking of unsold properties on Estate Agents books. The Halifax asserts that this is a sign that house prices could actually soon start to rise.

Time to make a move?

More reason then for those first time buyers with at least some savings to start chasing the new low deposit loan requirements introduced by some loan providers at the beginning of this month and get out there and find a bargain

Tags: First Time Buyers, halifax banking, Home Insurance, mortgages
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Stay put, lock up and bring down your costs

Tuesday, March 8th, 2011

As the credit crunch continues to bite, many homeowners have decided to put off moving home and decided to stay put. The ever escalating cost of living has not only put people off moving, it is making them more conscious of where they can make savings in the property they have. It is without doubt that savings can be made on a whole host of things, and one of these is definitely household insurance.

Compare your deal

Anyone spending a couple of hours watching TV will realise that home insurance comparison sites exist. They will also realise that some are spending quite a lot of money in competition with each other via adverts rather than substance. However, it really is a good idea to try and get a better deal than you already have.

Once you have selected an insurance company there are still other ways you can bring that quote down. It is of the utmost importance that you fill in your insurance application form honestly and to the best of your knowledge, but just by looking at the questions you will see how easy it is to bring your quote down.

Ways to bring down your home insurance

If someone is occupying your property day and night; for instance you are retired or work from home, then this reduces the risk of burglary, fire and flood and will bring in a cheaper quote. If you have a burglar alarm that has been fitted and maintained to a professional standard and you can prove it, then once again this should reduce your premium.

Window and door locks are another aspect of security that can bring down your costs. Questions on what sort of locks are on your doors can seem a little tricky and the best way to find out exactly what sort of security is installed in your doors is to ask the firm who fitted them, failing this a quick call to your local crime prevention officer will probably get you the information you need. The better the locks, then the cheaper the quote.

Pay up front and in bulk

You will usually save money by organising your home contents insurance and buildings insurance at the same time and with the same company, you will also save money by paying up front i.e. paying the full cost of the premium in one lump sum as opposed to paying by a monthly direct debit.

Tags: Contents Insurance, Home Insurance, household insurance
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Solar panel scheme looking decidedly shady?

Tuesday, February 8th, 2011

Homeowners looking to subsidise their household expenses such as energy costs and household insurance bills by installing solar panels may well have to get a move on if they want to get the most benefit from Government grants.

It is no secret that the Government has been keen to launch a comprehensive alternative fuel programme and that solar heating via solar panels is viewed as the star attraction. Homeowners across the UK have been invited to enquire about their home’s suitability for a matching set of solar panels on their roof. The big incentive is the 40+ pence per unit generated that the Government is prepared to pay any generator of alternative energy.

Who can benefit from the subsidies?

Of course the incentive has alerted entrepreneurs looking to make a fast buck on any scheme that offers subsidies especially as Government subsidies are known to be lucrative the world over. Suffice it to say many solar energy companies quickly realised the subsidies on offer can be enormous if a full field of solar panels is switched on and the energy generated attracts the feed-in tariff. Cornwall Council has been inundated by companies asking for planning permission to cover fields with solar panels and have already granted five.

Why Cornwall?

The county is the most westerly and southerly county in the UK and has more hours of sunlight than any other county, thus making it ideal for solar energy generation. Many independent homeowners have also enquired about situating the panels on their own homes but are finding the initial outlay prohibitive. With firms quoting in excess of £20,000 to install the systems plus the possibility of having to find cash to pay for roof strengthening and extra home insurance on their buildings cover many households are now thinking twice about investing in the panels.

This has left the way clear for the bigger players to set up their solar farms and get ready to clean up on the profit front. The Government are now getting worried that the original idea for small and medium projects to benefit from the subsidies is going to be shunted to one side by the bigger companies. They have announced a review of the feed-in tariff already and experts think that by midsummer the rates may well be lowered, leaving some investors out of pocket.

Tags: Solar panel scheme
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Negative outlook for a few more years in store for some

Friday, September 3rd, 2010

Homeowners in Huddersfield who find themselves caught in the negative equity trap are looking at a long wait before they will see a profit on their homes. Estate agents in the area have agreed with the figures from the National Housing Federation; who say that those homebuyers who bought when the housing boom was at its peak in 2007 will have to wait at least four years before they turn the corner.

Negative equity occurs when the value of a property falls below the value of the loan that was used to buy it. Independent forecasts show that people who bought at the height of the boom paid an average of £216,800, it is predicted that this average will rise to £226,900 but not until 2014.

This picture is all too familiar to Paul Keighley, who is a partner at an estate agent in Huddersfield. He said “People in Huddersfield are in a similar situation. Anybody who bought at the peak in 2007 saw a 15% or 20% drop, so for them to get back into positive cash flow on their property it could take that long. It’s difficult to put a definite figure on how many people in the area are in that position. There are some good signs in that there are people who are waiting to move and repossessions seem to have slowed. Until the banks start lending to first time buyers at reasonable rates, it will be hard for the market to get going. The situation for those people is a minimum 10% deposit, but add to that legal and survey fees and arrangement fees for the lenders the cost could run into four figures in certain cases.”

The level of borrowing against the value of a house in Huddersfield is less than the national average. A property is not just a home it is also an investment which can be protected by household insurance. The figures which have been released will be dominated by properties in the south which could cause nervousness in some quarters, but in Huddersfield and surrounding areas homeowners look at things long term

Tags: household insurance, negative equity, property market, tenants
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Do not buy a new Computer, upgrade it instead

Friday, August 6th, 2010

If a computer in the home is becoming a little dated and has old versions of software and programmes on it, before deciding to throw it away and buy a new computer, it is possible to have the latest software on your computer by simply upgrading it to match the latest new machines. There are lots of things that can be changed and tinkering with it will make it run faster, be more compatible and just simply perform better. Tell your household insurance company about the upgrade as the computer will be worth more after the changes.

The monitor is the best place to start the upgrade as it’s the window onto the computer and the larger and the better the resolution the more it will improve the computer’s usability. Next look inside the computer for the best upgrade choices. The more RAM that the computer has the faster it will run. Applications will use the RAM memory to run and the operating system will use it to make sure that the applications work, so generally, the more the computer has the better. Make sure the right RAM is purchased as systems can differ. There are lots of RAM manufacturers who can tell what RAM is needed just from the name and model number of a computer.

The storage space is something else that can be very easily upgraded. They are getting bigger all the time and upgrading will allow the ability to store more music, images and documents on a larger hard drive. Not only that, a computer will run much faster when there is more disk space available. A graphics card is the technology that powers the display and the faster and more capable the graphics card is the better all images will be. As with the RAM card, check that the graphics card is compatible with the computer. One of the best ways of improving performance and speed of a computer, is to replace the processor. This is quite a complex process and should only be done by someone who knows what they are doing.

There are other things that can be added to most computers. Many have space slots that allow the adding of expansion cards. Adding some USB ports modems or network cards are all possible. Upgrading a computer is one of the easiest ways of making it run faster and be much more capable.

Tags: computers, Home Insurance, media, upgrade
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A cast iron certainty to improve a bathroom

Wednesday, July 28th, 2010

Early plumbing systems for a bath have been documented as far back as far as 3300 BC with the finding of copper water pipes underneath a palace in the Indus Valley Civilization of ancient India. The Roman Empire of over 2000 years ago was famous for its love of bathing. Around 500BC all Roman citizens were encouraged to visit the many public baths on a daily basis. The Romans used marble for the bath tubs with bronze and lead for the pipes, they also created a very complex sewage system for sanitation. In fact the Romans set the bar high for personal hygiene. Bathing was still very popular until shortly after the Renaissance, when it was replaced by the heavy use of sweat bathing and perfume, because it was thought at the time that water may carry disease and infections into the body through the skin.

Cast iron has been used in the manufacture of baths for hundreds of years. A cast iron bath was once very common in the bathroom of a home before being replaced over time by man-made materials. Having a cast iron bath is now very much sought after in bathrooms of home-owners trying to create a contemporary home. Cast iron baths are the original roll top bath, named because of the way the top of the bath curves over. They are similar to a steel bath because they are both immensely strong and very rigid, both are coated with porcelain enamel, and both are very easy to clean and have a long life. The bath is cast from iron in a mould, then after forming the bath shape it is chemically cleaned, this ensures the surface is spotless before applying the enamel coat. A porcelain enamel coating will then be sprayed onto the bath and the entire bath is then fired in a large kiln to give a very strong chemical bond between the enamel and the cast iron.

The bath will not need a cradle or a frame as its strength will allow feet to be cast or bolted onto the body of the iron bath. The feet of the cast iron bath are not normally adjustable because the bath itself is extremely heavy. Because of this, it is important that a cast iron bath is only put on a very solid and level floor. It is very important that checks are made to make sure the floor is strong enough, or the bath may end up in the living room and a claim on the cheap home insurance policy ensues. The clawed foot is one of the most popular types of foot for a cast iron bath. A cast iron bath that has clawed feet is not normally enclosed and is often featured in the middle of the room. This allows the householder to apply some decoration on the underside of the bath and it is possible to get some very attractive designs to highlight the clawed foot bath.

Tags: Advice, Advice for Tenants, Home Insurance, household insurance, Saving Money, tenants
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