Property sales, first-time buyers, pensions and students

Investors took £5.7 billion out of UK-based stock market funds and a further £470 million from property funds last month in the wake of Britain’s vote to leave the EU, according to latest market figures. The Guardian reports that statistics from data company Morningstar show that some of the money appears to have been redeployed to other types of UK funds specialising in assets regarded as less risky, such as corporate and government bonds. In other Brexit news, Thisismoney reports that over half of households across the UK are concerned about the potential impact of Britain’s vote to leave the EU on their personal finances and jobs.

Nearly 27 per cent of Briton’s are worried that June’s Brexit vote could put their job at risk, according to a report from the Scottish Friendly and the Social Market Foundation. Meanwhile, levels of monthly disposable income climbed only 2.4 per cent in the last quarter, with the proportion of people spending more on housing costs up from 5.8 per cent to 7.1 per cent.

First-time buyers

With some predicting a fall in house prices following the EU referendum vote, many potential first-time buyers are poised to take advantage of the moment to get themselves on the first rung of the housing ladder. However they might be disappointed, with research from Moneyfacts.co.uk showing a number of 95 per cent loan-to-value (LTV) products disappearing from the market.

Charlotte Nelson, finance expert at Moneyfacts.co.uk, said: ‘It’s disappointing news for first-time buyers that the number of 95 per cent LTV products has fallen by 16 per cent in just five months. It is particularly bruising when many hope that the predictions of cheaper houses would help them realise their dream sooner than expected.’ However, data released this morning by the Council of Mortgage Lenders shows that first-time buyers borrowed £3 billion in the second quarter of this year, up 3 per cent on the first quarter and 10 per cent compared to the second quarter last year. This equated to 10,800 loans, up 3 per cent quarter-on-quarter but down 1 per cent year-on-year. Home-movers borrowed £2.5 billion, down 41 per cent on quarter one this year. This equated to 6,700 loans, down 37 per cent quarter-on-quarter and 18 per cent on quarter two 2015. Cashless society

A new survey from Worldpay suggests that one third of consumers believe cash will become obsolete by 2020. With London busses rejecting cash in favour of contactless payments and Waitrose opening the first entirely cashless store this month, the cashless revolution is firmly under way, the firm says.

Today, more people are paying with card than with cash preferring an expanding range of quick and easy payment options rooted in technology, with half of British shoppers having used contactless to pay for goods at least once and 40 per cent saying they use it a few times a week.

Pensions

As the Government announces plans to communicate with 100,000 people at risk of completely missing out on the new state pension, the latest findings of the Aegon Readiness Report show the need to go much further in helping people understand the state pension. A total of 80 per cent of the UK population don’t know the number of years they need to make National Insurance contributions for to qualify for the full £155.65 a week state pension, and the majority (57 per cent) underestimate the number of qualifying years needed.

In other pensions news, representatives of 1,250 armed police officers who protect UK civil nuclear sites are challenging a rule forcing them to work beyond the age of 60.

While most UK police can retire at 60, Civil Nuclear Constabulary officers must work until 65 under a new law. But the Civil Nuclear Police Federation says it will be ‘physically impossible’ for officers in their mid-60s to protect the public from terrorism. It is taking its case to London’s High Court to try to get the rule changed. Northern Rock Thousands of Northern Rock customers will not benefit from the cut in interest rates because the private equity owners of their debts have not passed on the Bank of England’s cut earlier in the month, according to The Times. The decision by Cerberus Capital Management, of the United States, contrasts with a slew of other mortgage providers that have cut borrowing costs since the Bank reduced the base rate on August 4. It may stir up fresh criticism of the sale of the nationalised loans to private equity players. Students

New research has revealed that 87 per cent of undergraduates had to ask their parents for money on average five times per study year, asking for £457 each time, in order to help pay their rent and buy food.  

According to www.notgoingtouni.co.uk, when requesting money from their parents in order to get by, some undergraduates admitted to asking for more money than they really needed, and others admitted that they had enough in the first place but wouldn’t have had money to socialise if they didn’t ask for financial help.