House prices have grown faster than predicted, The Telegraph reports, despite concerns that buyers would hold back ahead of this month’s EU referendum and a lull in the market after the buy-to-let-surge earlier in the year.
The annual rate of growth in May was 9.2 per cent, unchanged since April, according to Halifax. Prices had been expected to rise 8.9 per cent in the year to May. House prices in the three months to May were 1.4 per cent higher, after a dip of 0.8 per cent in the three months to April.
The fact that house prices have not dropped off substantially is ‘encouraging’ said Jeremy Leaf, a former chairman of the Royal Institution of Chartered Surveyors.
The paper also reports that almost one million households in Britain were millionaires last year, as rising savings and a booming stock market drove up the wealth of British families, according to the Boston Consulting Group. That means the UK has more millionaires than any country except for China, the USA and Japan.
Bad news for motorists
Diesel drivers will be hit by tax rises in order to cut air pollution, the Transport Secretary suggested last night. Patrick McLoughlin said hiking fuel duty or low-emission taxes ‘is something the Chancellor will need to look at’ in order to reduce toxic levels of nitrogen oxide and prevent deaths in cities.
His comments prompted concern among drivers and road haulage companies, which last night warned any increase in the tax would make UK businesses less competitive and increase prices in the shops for consumers. It comes after the government rejected calls for a diesel scrappage scheme – offering drivers of diesel cars cash incentives to trade them in.
Meanwhile, The Guardian reports that the company Adrian Flux has launched what it claims to be the UK’s first personal driverless car insurance policy. The policy is designed for consumers who already have driverless features in their cars, such as self-parking, or are thinking of buying a car with autopilot features. Fully self-driving cars are not expected to be on the road until 2020 at the earliest, when Volvo has said it plans to launch such vehicles.
Gerry Bucke, the general manager of Adrian Flux, said: ‘We understand this driverless policy to be the first of its kind in the UK – and possibly the world. More than half of new cars sold last year featured autonomous safety technology, such as self-parking or ABS [anti-lock braking systems], which effectively either take control or take decisions on behalf of the driver. And it’s only going to continue. Driverless technology will become increasingly common in our cars over the next few years.’
Savers’ gloom
The Daily Mail reports that thousands of savers are being forced to survive on reduced incomes because of a bungled tax raid by HM Revenue & Customs.
Money Mail has received dozens of letters from pensioners who are being charged tax on savings income they are yet to receive. The paper claims they are being made poorer because the taxman has started deducting money from their monthly pension or salary to cover dues on what it thinks they get each month from savings interest. It does this by changing your tax code.
In reality, savers are being taxed before the savings interest hits their bank account. This is because savings interest is usually paid only once a year, rather than monthly. It means pensioners have less to live on while they wait for their bank to pay out.
Energy bills
According to Thisismoney, almost four million energy customers were overcharged £72 on average last year, a total of £270 million, because of errors made by their energy providers.
Billing errors were largely to blame including mistakes with the pricing of tariffs, customers charged incorrect fees, and bills that didn’t match up to the meter readings given, according to new research. Many of those affected also had problems getting their money back and nine per cent have still not been paid by their suppliers, the survey found.
The wrong tariff or product was the most common error, experienced by 36 per cent of those who reported being overcharged, according to the survey by price comparison website uSwitch. This was followed by incorrect fees (31 per cent) and bills that do not match up with meter readings given by customers (27 per cent).
EU referendum worries
The latest Disposable Income Index published today by savings and ISA provider Scottish Friendly has revealed that nearly half of UK households are worried about the impact of the EU Referendum on the pound in their pockets. Despite a £95 increase in disposable income compared to last quarter, Brits are still concerned about the impact of unexpected bills and external economic shocks.
The quarterly report, which has been compiled in conjunction with think-tank the Social Market Foundation, reveals a small improvement overall (from £905 to £1000) in disposable income over the last quarter, bolstered by continued low rates of inflation, the introduction of the National Living Wage and moderate pay growth across the private sector. Those in part-time work in particular seem to have benefited from the introduction of the National Living Wage at the start of April 2016.
However, some groups find themselves more squeezed than others. Those aged 35-44 years have just £825 left each month after buying daily necessities, just less than the £831 available to 25-34 year olds and below the national median of £1,000. Those in work continue to find themselves with less disposable income than those in retirement, with the average retiree having a higher monthly disposable income of £1,585.
Sports Direct
Mike Ashley’s Sports Direct is facing a multimillion-pound bill in fines and back pay after the billionaire admitted his company had broken the law by failing to pay staff the national minimum wage. Ashley, who could also face being disbarred as a company director because of the breach, admitted to the Business Select Committee that at a ‘specific time’ Sports Direct effectively paid workers less than the minimum wage because they were held back at the end of their shift and searched by security before leaving the company’s warehouse.
Today it’s the turn of former BHS owner, Dominic Chappell, who will be grilled by two select committees about the collapse of the British department store.
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