UK households face huge energy hikes in the New Year, according to new research.
Thisismoney reports on a study by Gocompare.com. The price comparison site calculates that the average rise for affected households will be £250.92 over a year. But the worst-hit are looking at a 41 per cent rise. This is because 35 fixed dual energy tariffs – including deals from Co-operative Energy, Npower, Scottish Power and Sainsbury’s Energy – end in January. After this point, customers will be automatically rolled onto standard variable rates which, in most cases, are more expensive.
Housing
The total value of the UK’s 28.9 million homes increased by more than 7 per cent over the year to reach a total of £8.17 trillion, according to new research published in The Guardian. The paper states: ‘This means the average property has gone up in value by £56.57 a day, according to property website Zoopla, which named the Norfolk market town of Diss as “the year’s biggest winner” when it came to price growth. The site analysed its price data between 1 January and 7 December 2016, and said Britain’s total housing stock was now worth £8,165,502,086,907. This was an increase of £559 billion – or 7.35 per cent – since January.’ In other housing news, house prices in England have grown at twice the rate of pensioner households’ disposable incomes over the past 20 years – far exceeding the gains pensioners have seen from other staples of retirement income such as the state pension, investments, occupational pensions and other earnings, according to new research from the Equity Release Council.Analysis of the latest data from the Office for National Statistics reveals that pensioners’ household incomes increased by 66 per cent in real terms between over the last 20 years, from £12,664 to £21,026 a year. Over the same period, inflation-adjusted house prices in England increased by 148 per cent from £82,100 to £203,360.
New financial guidance bodyProfessional Adviser reports on a new government consultation aimed at creating a single financial guidance body after autumn 2018.
Lloyds is to buy credit card firm MBNA from Bank of America for £1.9 billion, according to the BBC.
It is the bank’s first acquisition since the 2008 financial crisis. Lloyds, which is nearly 7 per cent state-owned, said MBNA would be a ‘good fit’ with its own credit card business. As a result, the bank’s share of the UK credit card market will increase from about 15 per cent to 26 per cent. Insurance The Association of British Insurers has launched a legal challenge of the Lord Chancellor’s decision to review the discount rate for personal injury damages, calling on the Government to complete its consultation and change the methodology before proceeding. Without doing so the review will take a flawed approach based on a fundamental misunderstanding of how people invest their compensation, the ABI said.
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