Bank of England prepared to cut rates if job market slows, says governor
In the Times interview, Bailey said there were consistent signs that businesses are "adjusting employment and hours" and are giving smaller pay rises following UK Chancellor Rachel Reeve's move to increase employers' national insurance contributions from April.Reeves raised national insurance rates for employers from 13.8% to 15% in April this year, in a move the government estimated would generate £25bn a year.Bailey said the UK's economy was growing behind its potential, opening up "slack" that would help to bring down inflation."I think the path [for interest rates] is down. I really do believe the path is downward," the governor said."But we continue to use the words 'gradual and careful' because... some people say to me 'why are you cutting when inflation's above target?"'Interest rates were held at 4.25% during the Bank's last meeting in June, following two cuts earlier in the year.During that meeting, Bailey also said interest rates would take a "gradual downward path".The UK economy contracted by 0.1% in May, after also shrinking in April, according to the Office for National Statistics. The unexpected dip was mainly driven by a drop in manufacturing, while retail sales were also "very weak", said the Office. The UK's performance adds pressure on the government, which has made boosting economic growth a key priority.
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The Independent
25 minutes ago
- The Independent
Get ready to hear a lot more about Aion EVs in the UK
Chinese automotive powerhouse Guangzhou Automobile Group (GAC) is set to enter the fiercely-competitive UK electric car market, announcing a joint venture with distributor Jameel Motors. The team-up will see the launch of GAC's dedicated EV sub-brand, Aion, with the first models expected to reach UK customers in early 2026. The move marks the latest in a wave of new EV brands from China targeting British consumers. GAC joins an increasingly crowded EV market, competing against established European and Asian manufacturers as well as fellow Chinese newcomers like BYD and Omoda. The launch will focus on two all-electric models: the Aion V, an SUV poised to challenge the Kia EV3 and BYD Atto 2, and the Aion UT, a hatchback to rival the Vauxhall Corsa Electric, Peugeot e-208 and MG4. Additional models from the Aion line-up are also expected to come to the UK. GAC is one of China's biggest automakers, though it's unlikely you'll have spotted any of its cars on UK roads. The UK saw a 25.8 per cent year-on-year increase in EV registrations as of May 2025, according to the Society of Motor Manufacturers and Traders, highlighting the significant long-term potential GAC aims to tap into. Wayne Wei, president of GAC International says 'GAC's entry into the UK marks a crucial step in its internationalisation strategy. As we set foot in this dynamic market, GAC is committed to bringing industry-leading products and first-class services to UK consumers.' By partnering with an experienced distributor in Jameel, GAC looks to take advantage of the network's logistics, retail, and after-sales support, accelerating their path to market and mitigating the significant investment required to build a network independently. Jasmmine Wong, chief executive officer of Jameel Motors, says 'the joint venture with GAC represents a shared vision, and an exciting opportunity to meet the UK's growing demand for smarter, cleaner passenger vehicles. Led by customer preference and guided by our expertise, we're committed to staying ahead of trends and delivering first-class solutions that are both innovative and sustainable.' GAC arrives in the UK with formidable credentials. The company sold over 100,000 of its self-branded vehicles overseas in 2024. Its Aion brand is central to its electric ambitions, showcasing the company's focus on innovative tech.
The Sun
26 minutes ago
- The Sun
Flat owners could be owed £3,500 over ‘secret' insurance charges according to new lawsuit
FLAT owners could be owed £3,500 over "secret" insurance charges, according to a new lawsuit worth millions of pounds. Some 20,000 people who own flats in the UK are taking legal action against the companies that own their apartment blocks. Legal letters claim freeholders - the building owners - took commission fees for arranging buildings insurance, which was then secretly added to the service charges paid by the flat owners. The homeowners have accused their landlords of "milking them for cash" at a time when thousands have been struggling with the cost-of-living crisis, dubbing it a "national scandal". Lawyers have suggested that each flat owner could be awarded between £1,500 and £3,500 in compensation. They say up to 900,000 homeowners who most commonly own flats in multi-occupancy blocks could be affected. The freeholders were allegedly paid the fees by insurance companies in exchange for buying their products. These were then added to the cost of the buildings insurance by the freeholders or their agents, and the total amount was then charged to the flat owners in the form of service charges without their knowledge, the leaseholders claim. All freeholders involved in the lawsuit have denied any wrongdoing. David Walsh owns a flat in a block in West London, and is one of the homeowners taking legal action. "This is nothing short of a national scandal," he said. "Hundreds of thousands of leaseholders have been struggling with ever-increasing service charges, mortgages, and like everyone else, the cost-of-living crisis. 5 things to check before applying for a mortgage "So, it is even more shocking that our landlords have been milking us for cash by jacking up insurance premiums with hidden commissions. "I'm looking forward to unscrupulous landlords being held to account and paying back what they owe." Velitor Law, the firm taking the class action lawsuit, has written to four of the UK's largest freeholders - E&J Estates, Consensus Business Group, Long Harbour and Ground Rents Income Funds - to recoup the fees. It is expected that around two dozen landlords, who control the leaseholds for close to 900,000 homes, may eventually be subject to the Leaseholder Action claim. The claim seeks to recover a minimum of six years' worth of commissions from landlords, but lawyers have applied to suspend the usual period of limitation, which could see the claim stretch back as far as 1997 in some cases. Liam Spender, the lawyer at Velitor Law, which is taking the class action lawsuit, commented: 'We have now reached a critical milestone in the legal process to get homeowners their money back. "Thousands have signed up enabling us to get to this point. If you are a homeowner in a block of flats, and your landlord arranges your buildings insurance, we'd encourage you to sign up to the claim. "This first set of landlords are now on notice of this claim and they are now going to have to answer in court.' Velitor Law said a second tranche of legal letters to landlords will be issued before the end of the year. Who can make a claim? Up to 900,000 homeowners who primarily own flats in multi-occupancy blocks may be affected, lawyers for the leaseholders say. Velitor Law said that interested flat owners should sign up via It added that the final amount of damages will depend on where the building is, the overall level of commission, whether it is possible to claim for more than six years, and whether the court awards interest and allows recovery of Insurance Premium Tax. The Sun has contacted all four freeholders involved for comment. A spokesperson for HomeGround told the Sun: 'HomeGround's insurance services are subject to the Financial Conduct Authority's regulatory regime and it receives commission in line with that strict regulatory framework.' A spokesperson for Ground Rents Income Fund said: "We do not consider there to be any valid basis for a claim against GRIF." It comes after Mastercard was ordered earlier this year to pay out £200m in compensation to 47 million customers in a landmark legal battle. Mastercard customers were entitled to a compensation payout worth up to £70 each as a result of the long-running case. .
Telegraph
26 minutes ago
- Telegraph
Why every seller should get a survey before putting their house up for sale
Paying out a few hundred pounds on a survey before selling your home could be the most valuable money you'll spend when moving house. Almost 20pc of buyers have pulled out of a purchase after putting in an offer, according to moving comparison website Compare My Move. Nearly half the time, the decision was down to discovering issues that required major repairs. Sellers can preempt issues that could crop up on a buyer's survey by having their own report carried out first. A Level 2 homebuyers report, suitable for properties less than 50 years old, costs £445 on average. A full structural Level 3 survey that includes a more thorough look at the property's structure and condition, including looking under floorboards, could cost £700 to £1,500. However, if it means finding out about and getting on top of any issues before a sale, it is likely to be money well spent. Ray Smith, chartered surveyor at Watsons Property Group, said: 'Common issues we see include cracked roof tiles, signs of damp, poor loft ventilation, timber decay and invasive plants like Japanese knotweed. We also come across the more unexpected, such as bats in loft spaces, oversized wasp nests and signs of long-forgotten fire damage. 'Sellers who tackle these problems before going to market, or are upfront about them, can build trust with potential buyers and reduce the risk of last-minute renegotiations or sales falling through. It can even help justify your asking price and keep the chain moving smoothly.' Telegraph Money lists the five most common survey concerns that lead to sales collapsing and what you can do to protect yourself: 1. Instances of damp When damp is picked up on a survey, buyers picture black mould, rot and expensive disruption – even if it is actually a very mild case. Some instances of damp can be simple and quick to fix, while in other cases they can be more serious and costly. Brett Ray, of property inspection app Survey Shack, said: 'The issues that derail sales aren't rare; they're routine, and that means they're avoidable. 'By being prepared, sellers could save themselves thousands of pounds in the long run.' For example, poor ventilation in a period home occupied by a family can lead to high moisture levels in the air, which may cause mould or stains on walls and ceilings. This is especially a risk in corners or places where air doesn't circulate well. Sellers can often improve conditions by avoiding indoor drying of clothes, using extractor fans, and regularly airing out the property by opening windows and vents. Where signs of past condensation or surface mould remain, redecorate after improving the ventilation. However, simply repainting over affected areas without addressing the cause can lead to suspicion during a buyer's survey. In some cases, staining, damp patches or musty smells may be due to disconnected or poorly installed ventilation ducting in the loft, such as from a bathroom fan. This is often a low-cost issue to resolve and can make a noticeable difference to a property. Another common issue in older homes is where external ground levels have been raised over time, for example, with new patios or driveways. This can make the original damp-proof course – a barrier designed to prevent moisture rising up to a building's structure – ineffective, allowing moisture to rise into walls and affect nearby timbers such as skirting boards or suspended floor joists. If in doubt about the causes for damp smells or stains, sellers can hire an independent damp and timber specialist who is a member of the Property Care Association to complete a report, which can range from £200 to £600 depending on the size of the home. 2. Roofing problems Slipped, cracked or worn pointing on roof tiles may just need individual repairing or replacing. However, if neglected and allowed to accumulate, it could give the impression the roof is nearing the end of its life, which invariably triggers budget panic in buyers. A new roof on a typical three-bedroom semi-detached property can cost between £12,000 and £20,000. Employ a reputable roofing company to fix anything obvious, and if there is life left in the roof, ask them to confirm it in writing, including the date of the inspection. This can be presented to the buyer's surveyor to head off any speculation over its lifespan. 'A roof in poor condition is evident to pretty much anyone,' said Mr Ray. 'Sellers should be asking a competent roofer who is either a member of the Federation of Master Builders or who has been personally recommended to provide an estimate for a replacement roof if that's what is required. 'If a buyer starts obtaining their own quotes that range from between £30,000 and £50,000, they are going to want to knock £50,000 off – so get out in front of the negotiations.' electrics Tell-tale signs of older electrical systems include dated light switches, sockets mounted on skirting boards and an old-style fuse board. These visuals alone can lead a surveyor to raise questions and buyers to panic. Regardless of apparent condition, many surveyors will recommend that an up-to-date electrical installation condition report (EICR) is obtained, particularly if there is no recent certificate to confirm the system has been tested and is safe. These reports usually cost between £150 and £300, but can be more if a property is unusual or complex. Electrical faults carry serious safety risks, so a recommendation for further investigation is standard practice. Without an EICR, buyers may assume the worst, sometimes fearing the need for a full rewire, which could lead to reduced offers or even withdrawals. While full rewires are not always necessary, costs can vary depending on the age and layout of the system. The average cost of a full rewire for a three-bedroom house is likely to be between £4,450 and £8,000, according to the website Checkatrade. If your own pre-sale survey suggests that further checks are needed, arranging an EICR in advance provides clarity and reassurance. If the report flags issues, it will outline what is required to bring the electrics up to standard, information that can be shared with the buyer from the outset. 4. Plumbing system Lead pipes around drinking water, a dated boiler and signs of corrosion and stains around pipework or on ceilings under showers and baths are likely to lead to a surveyor recommending a specialist inspection. A plumbing survey, which costs between £150 and £300, would investigate the system, while a gas safe engineer report would be instructed if there were concerns about the boiler. This costs between £80 and £250. Ensure the boiler has been serviced and obtain a valid certificate to present to the surveyor so no doubts are raised in their report. If it's functional but old and nearing the end of its life, a buyer will spot it when they view your home, so it's worth raising the point upfront and building it into negotiations from the outset rather than waiting for a surveyor to comment on it after the buyer has offered. Make it clear that the offer you're accepting is acknowledging the boiler is 20 years old and, while still working, may need to be replaced in two years, for example. 5. Structural movement Cracks in a wall, even if historic, can raise alarm bells among buyers, as surveyors often can't give assurance that they are not a sign of current movement. Fearing a risk that part of the house could collapse without major repairs – buyers may be tempted to walk away. Cracks that run through brickwork and are visible inside and outside the property can suggest ongoing structural movement and should be looked at more closely, as should those that extend all the way down to the ground, which can indicate movement in the foundations. But not all cracks are a cause for concern. If your homebuyers survey raises questions about the stability of your property – a structural engineer's report costing between £600 and £1,000 will give you and potential buyers the definitive answer. Mr Ray said: 'By producing an impartial report by a structural surveyor that confirms the cracks are historic and there is no current movement, the concern is neutralised before it becomes a negotiation tactic.'
