First-time buyers, payments, high-cost credit and lending

Despite fears over affordability and the effects of the Brexit vote, the number of first-time buyers purchasing homes in the UK reached a record high in October. The National Association of Estate Agents said that a third of sales registered at its members’ branches were to first-time buyers, a 9 per cent rise from September and the highest figure since the association started putting the data together in 2000. According to The Times, ‘Mark Hayward, managing director of the association, said that this could be down to house price growth slowing and houses appearing more affordable to buyers. Both Nationwide and Halifax have reported a slowdown in annual house price growth since April.’ Meanwhile, Bank of England data published this morning shows that lending increased last month at the fastest annual pace in 11 years and mortgage approvals were stronger than anticipated. The BBC reports that consumer credit increased last month by £1.62 billion, up from £1.48 billion in September, taking the annual growth rate to 10.5 per cent – the strongest since October 2005. Mortgage approvals for house purchases rose to 67,518 in October from 63,594 in September. Payments

The payments industry is to undergo the most significant changes since the 1960s, partly in a bid to halt the wave of fraud facing current account customers.

Thisismoney reports that ‘the Payments Strategy Forum, whose members include consumer groups, businesses, fintechs, UK banks and building societies, has compiled a list of recommendations to offer greater security for customers and businesses. The strategy proposes a key new safeguard called ‘confirmation of payee’ which it believes will help prevent financial fraud.’

Ruth Evans, chair of the Payments Strategy Forum said: ‘Around £755 million was stolen from UK bank accounts last year and the problem looks set to worsen as criminals become more technologically savvy. We need to address the issue head on. Payments are the lifeblood of the UK’s economy. They underpin our daily lives, from the morning coffee we buy before work, receiving our salaries and pensions, sending cash-strapped kids loans for rent to avoid going into overdraft, to the purchase of our first home. It’s important that we have the tools to protect ourselves and that we future proof our systems for generations to come.’

High-cost credit

A price cap to help consumers who use ‘rent-to-own’ firms to buy goods is on the cards, the head of the City regulator has said.

Andrew Bailey, the chief executive of the Financial Conduct Authority, said a cap would be considered as part of its inquiry into high-cost credit. The BBC said that ‘up to 400,000 people use rent-to-own firms to buy household appliances, paying the money back over three years. But after interest is added, they can end up paying twice the original price.’ Pensions Ministers have confirmed that the state pension will increase by 2.5 per cent in April 2017, as a report shows that the ‘triple lock’ promise on payments could hike up the cost of providing the benefit by more than a third over the next 30 years. The Guardian reports that ‘from April, pensioners on the new flat rate pension will see their weekly payments increase to £159.55 from £155.65 currently, while the old state pension will rise to £122.30 from £119.30.’ BT In a move which BT’s competitors believe is long overdue, Ofcom will order the telecoms giant to legally separate from its Openreach network after the company failed to address ‘competition concerns’ voluntarily. The Telegraph reports that BT has been spared an immediate full break-up of its monopoly over the UK’s broadband infrastructure. However, it represents a victory for the telecoms giant’s rivals as it removes BT’s control over strategy. Cars Motorists looking to upgrade their car could save almost a quarter on running costs by choosing a brand new model rather than a used one, new analysis from MoneySuperMarket reveals. MoneySuperMarket analysed costs for five popular vehicles – Nissan Qashqai, Volkswagen Golf, BMW 3 Series, Ford Fiesta and Vauxhall Astra – and found in all five cases a brand new model incurs significantly lower running costs (including fuel, road tax, insurance and MOT) compared to a five-year-old model of the same vehicle. Boardroom pay

Later today the Government will outline how it aims to curb executive pay and target boardroom excesses in private firms as well as listed companies, according to the BBC.

Theresa May said she wanted to stop an ‘irresponsible minority’ of private firms acting badly. The move follows widespread anger over the collapse of BHS with the loss of 11,000 jobs and a huge pension deficit. Finally… The weak pound is driving up the cost of making a Christmas pudding. Nigel Allen, founder of the Old Fashioned Pudding Company, told BBC 5 live‘s Wake Up To Money that the price of sugar has gone up by 20 per cent and sultanas by 10 per cent.