Rent deals, housing hot-spots and sneaky ways to save money

Rents have reversed their Spring trajectory as a tide of homes to let bought before the April Stamp Duty surcharge have reached the private rented sector.

According to the latest Buy-to-Let Index from letting agents Your Move and Reeds Rains, average rents for homes to let across England and Wales now stand at £792 a month. This represents a drop of 0.2 per cent since April, and compares to a long-term average monthly rise of 0.4 per cent every May since the recession.

Adrian Gill, director of lettings agents Your Move and Reeds Rains, said: ‘This is the equivalent of a flash flood for the rental market. Just a month ago rents were heating up and Spring was in the air – but this has been put on hold as a tide of new properties to let has disrupted the normal dynamics of supply and demand. Landlords escaping a much larger stamp duty bill by completing their purchases before April 1 have now finished their repairs and paperwork, with these homes to let competing for tenants in May and into June. That short-term mismatch has made May an exceptional month, with excellent deals available for some prospective tenants.’

Housing hot-spots

For the second year running, the BN3 postal district in the South Coastal town of Hove is the most desirable location to buy a home in England and Wales for young professionals, according to the latest research from Lloyds Bank. With Hove’s larger neighbour Brighton (BN1 postal district) coming in as the seventh most popular place to live for aspiring 25 to 44-year-olds, the East Sussex coastline continues to attract the young and ambitious. Factors including its diverse population, the availability of music venues, theatres, independent shops, bars and restaurants, and the fact that it is under 70 minutes train ride to London, have made Brighton and Hove one of the most sought after places for young professionals to live. London itself continues to prove popular with young professionals, with 16 of the 20 areas with the most property sales to this grouplocated in the capital. Ten of these areas have a SW post code and include locations such as Wandsworth, Wimbledon, Battersea, Balham and Clapham. Brexit The Bank of England has issued a fresh warning that a vote to leave the EU in next week’s referendum risks knocking economic growth, pushing the pound sharply lower and sending shockwaves through the global economy. The Guardian reports that against the backdrop of jittery financial markets, the Bank also revealed its top policymakers had been briefed by staff on contingency planning for the referendum as it readies measures to prevent markets seizing up in the event of a leave vote next week. Announcing its decision to keep interest rates at their record low of 0.5 per cent, the Bank said the referendum on June 23 was the biggest immediate risk to UK financial markets, and perhaps those overseas, and that the current uncertainty was already denting spending.

Calum Bennie, savings expert at Scottish Friendly, said: ‘With even the US Federal Reserve putting any possible interest rate rise on hold because of the potential economic consequences of a Leave Vote in next week’s referendum, the Bank of England decision of no change is no surprise. The current uncertainty caused by the looming referendum has triggered sterling to be increasingly volatile and interest rates look like staying at rock-bottom for months, if not years. Unless the result of the referendum, whatever it may be, gives a boost to the markets, consumers face a raw deal this summer. Not only will their cash savings remain in the doldrums, but their spending power, particularly abroad, could be hit.’

Sneaky ways to save money

It seems that Britons are thinking of even more ways to save money, including stealing from other customers, according to a recent study carried out by a money saving website. Findings indicate that one in three Brits admit to using found receipts that aren’t theirs to save money and redeem store points in the likes of Tesco, Boots and Sainsbury’s.

The research was undertaken by www.VoucherCodesPro.co.uk and polled a total 2,413 UK-based adults, aged 21-50, on their shopping habits and how they saved money while shopping for consumer goods.

Respondents were asked if they often utilised coupons and offers when it came to their groceries – 61 per cent stated they used a coupon or offer every time they purchased groceries in store.

Retail boost The Times reports that warmer weather led to a jump in clothing sales that helped to push the volume of all retail sales up by 6 per cent in May — the biggest annual rise since September, according to the Office for National Statistics. April’s retail sales growth was also revised up to 5.2 per cent from 4.3 per cent, which the ONS said reflected an unusually high amount of data that was received late from stores. The figures gave hope that the expected slowdown in economic growth in the second quarter of the year will not be as bad as first thought, while suggesting that fears of a possible vote to leave the EU is not affecting consumer spending. Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: ‘Surging retail sales show that consumers aren’t paying much heed to warnings that the economy could nosedive if the UK opted for Brexit next week.’ Motor insurance The Times also reports that a two-year run of profits in the motor insurance market has come to an end after claims payouts continued to mount despite a government-led crackdown on fraud. According to the accounting consultancy EY, motor insurers reported a marginal loss last year after notching up annual profits in each of the previous two years. Pensions The trustees of the British Steel pension scheme have asked its 130,000 members to accept scaled-back retirement benefits to avoid having to use the pensions lifeboat. The trustees have been looking for a way to stop the scheme being folded into the pension protection fund (PPF), which would result in benefits being hacked back. They have now issued their formal response to a government consultation about a modified pension deal that would cut benefits but bypass the need for the PPF.