Latest news with #RetailPriceIndex
Yahoo
6 days ago
- Automotive
- Yahoo
UK used car market remains stable with seasonal price dips in May
The British used car market showed stability in consumer demand, sales speed, and transaction volumes in May 2025, with average retail prices aligning with seasonal trends, according to Auto Trader's latest market data. Auto Trader's Retail Price Index, based on 800,000 daily pricing observations, reported the average price of a used car at £16,825 ($22,714). This marked the second consecutive month of flat prices on a year-on-year (YoY) and like-for-like basis, following more than 18 months of price declines. Prices softened by 0.7% month-on-month (MoM), consistent with historical seasonal patterns. Since Auto Trader began tracking retail prices in 2011, May has typically seen a price dip following an April increase, except during the pandemic-affected years of 2020 and 2021. Consumer demand, measured by searches and advert views on Auto Trader, grew 1% YoY in May, building on a 10% rise in May 2024 and contrasting with a 2% drop in April. Demand varied significantly by vehicle age. Cars aged five to ten years and over ten years saw robust demand increases of 4.5% and 10.4% YoY, respectively, driving price rises of 1.4% (£13,705) for five-to-ten-year-old and 2.6% (£6,555) for those over a decade old. Conversely, demand for one- to three-year-old and three- to five-year-old cars fell by 2.4% and 9.1%, respectively. Used cars sold at an 'impressive' pace, averaging 30 days to sell, matching May 2024 and a day faster than 2023. The five- to ten-year-old cohort sold quickest at 28 days, while one- to three-year-old cars took 34 days. Transaction volumes rose approximately 1% YoY in May, following a strong first quarter and a 'solid' April. Independent retailers saw sales increase by around 4.2% YoY, benefiting from stocking more affordable, older cars. Franchise businesses, however, faced a 1.8% YoY sales decline, impacted by higher-priced stock profiles, a return of one- to three-year-old cars, limited availability of three- to five-year-old cars, and pressure from new models. Fuel type trends showed declining demand for used petrol (down 0.5% YoY) and diesel (down 9.7% YoY) cars, while alternatively fuelled vehicles surged. Hybrids and plug-in hybrids saw demand rise by 16% and 27%, respectively, with used electric vehicles (EVs) leading at a 31% YoY increase, driven by falling prices. The average used EV price was £24,370, down 7.4% YoY, compared to 0.5% and 2% YoY growth for petrol and diesel cars. For 3-5-year-old vehicles, EV prices dropped 11.6% to £18,266, making them cheaper than equivalent petrol cars (£18,731). Auto Trader strategy & insights head Marc Palmersaid: 'Although a slight softening on the strong first quarter of the year, we've seen a flatter but nonetheless robust used car market so far in Q2. Retail prices are stable, demand is healthy, cars are selling at pace, and on our platform, we're seeing huge volumes of highly engaged car buyers. 'For those retailers able to source sufficient quantity and quality of in-demand stock, this is proving to be a strong combination, with overall transactions ahead of where they were last year. The market may be very nuanced, but there are clearly areas of profit potential available, and so I'd urge retailers to make full use of the tools and data we've developed to spot the best opportunities for their forecourts.' In May 2025, Auto Trader reported that nearly 10,000 retailer sites have utilised its AI-powered Co-Driver tools since their launch to enhance performance. "UK used car market remains stable with seasonal price dips in May" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Daily Mirror
22-05-2025
- Health
- Daily Mirror
Furious nurses vote whether to strike after doctors get bigger pay rise
Government announces 'above inflation' pay awards of 4% for doctors and 3.6% for nurses and most other NHS staff who are now balloting whether to accept the deal Nurses are furious after being awarded a pay deal less than doctors as NHS workers are balloted over strike action. The Government has announced a pay rise of 4% for doctors and 3.6% for other NHS staff in England, insisting it is offering a real terms pay increase for the second year in a row. Health Secretary Wes Streeting said the Labour government 'was never going to be able to fully reverse a decade and a half of neglect in under a year'. The Royal College of Nursing called it 'a grotesque decision to again favour doctor colleagues for higher increases than nursing and the rest of the NHS'. The Consumer Price Index (CPI) is the measure of inflation used by the Government and is currently at 3.5%. Unions prefer to reference the Retail Price Index (RPI) is a broader measure that includes owner-occupied housing costs like mortgage interest payments and is currently 4.5%. Professor Nicola Ranger, General Secretary of the Royal College of Nursing, said: "This pay award is entirely swallowed up by inflation and does nothing to change the status quo - where nursing is not valued, too few enter it and too many quit. It is a grotesque decision to again favour doctor colleagues for higher increases than nursing and the rest of the NHS. Starting salaries for nursing staff remain too low. "Nursing staff have suffered 15 years of pay erosion and this award is symptomatic of a broken system which erodes our pay each year and keeps nursing staff weighted to the bottom. Now, hundreds of thousands of our members in the NHS will be given a vote on this award. They will ultimately decide if it is enough and whether they feel valued." The college led its members into the biggest strike in the RCN's history in December 2022, when around 100,000 nurses walked out in a dispute over pay. However the leadership recommended members accept a 5% pay rise for 2023/24, plus a lump sum of at least £1,655, at a time of soaring double-digit inflation. Members voted to reject the deal by 54% to 46% but then a second RCN ballot to continue strikes failed to meet the legal turnout threshold of 50%. In contrast the British Medical Association's resident doctors - formerly known as junior doctors - remained out on strike right up until the 2024 General Election and eventually received a 22.3% pay rise over two years including 2023/24 and 2024/25. Resident doctors had already started a ballot for strike action before Thursday's pay announcement which will give them a 4% rise plus a consolidated payment of £750. The British Medical Association (BMA) called on Health Secretary Wes Streeting to enter direct negotiations to "avert strike action". Professor Philip Banfield, BMA chairman of council, said: "The Health Secretary can avert strike action by negotiating with us and agreeing a route to full pay restoration. Doctors' pay is still around a quarter less than it was in real-terms 16 years ago and today's 'award' delays pay restoration even more, without a government plan or reassurance to correct this erosion of what a doctor is worth. No-one wants a return to scenes of doctors on picket lines - we'd rather be in hospitals, in GP practices or in the community seeing patients, improving the health of the public - but today's actions from the Government have sadly made this look far more likely." Mr Streeting said that the Government would not be able to "fully reverse a decade-and-a-half of neglect in under a year". He said: "These are thoroughly deserved pay rises for all our hard-working nurses, doctors and other NHS staff," he said in a statement. We inherited a broken health service with extremely low morale after years of pay erosion and poor industrial relations. "Which is why, despite the difficult financial situation the nation faces, we are backing our health workers with above-inflation pay rises for the second year in a row. This Government was never going to be able to fully reverse a decade-and-a-half of neglect in under a year, but this year's pay increases - and last year's - represent significant progress in making sure that NHS staff are properly recognised for the outstanding work they do." The Government accepted Pay Review Bodies' headline pay recommendations for NHS staff. This will be 4% for consultants, specialty doctors, specialists and GPs, with dentists also receiving a contract uplift of this rate. Most NHS are on the main 'Agenda for Change' contract including nurses, health visitors, midwives, ambulance staff, porters and cleaners and will receive 3.6%. The Government says this will mean the starting salary of a nurse will have gone up by around £4,000 over three years from £27,055 in 2022/2023 to £31,050 this year. The Government accepted the pay awards which were the recommendations from pay review bodies which take submissions from unions, the NHS and government. UNISON head of health Helga Pile said: 'The absurd pay review body process has led to two different awards for employees. But the NHS is one team and should be treated that way. Nurses, porters, paramedics, healthcare assistants, cleaners and other workers on Agenda for Change contracts will feel less valued than their doctor colleagues. That will generate more discontent from an already demoralised workforce. So long as coffee shops, supermarkets and parcel delivery firms pay more than the NHS, staff will go on leaving. The GMB union is balloting tens of thousands of NHS and ambulance workers between now and July 17. GMB national secretary Rachel Harrison said: "GMB has been notified of the 2025/26 pay award for NHS workers. We're pleased dedicated NHS staff will get their pay rise closer to their anniversary date than they have in previous years. The decision on whether this pay award is acceptable is for GMB members to decide."
Daily Mail
01-05-2025
- Business
- Daily Mail
We've found a leasehold flat to buy: Should the inflation-linked £500 ground rent put us off?
My husband and I are house hunting and came across a great flat that we are really excited about, but there are a couple of concerns. The flat, which is in a block of 18, is leasehold. The service charge is £2,400 a year and that includes bike storage, lift access, a communal roof terrace and buildings insurance. That doesn't seem too bad, but could the costs escalate in the future? Our biggest concern is the ground rent which is currently £500. There is a review period every 10 years at which point it will be increased in line with the Retail Price Index. Could the fact that it is leasehold, with increasing ground rent and the fact it does not have any private outside space mean we may struggle to sell in the future? Its asking price is £50,000 below what the previous owners paid for it in 2019 and that was when it was brand new. There are 119 years left on the lease. Ed Magnus of This is Money replies: There is a lot of nervousness at the moment around buying leasehold. This is translating into stunted price growth. Over the last five years, the average value of a flat has increased by 7 per cent, according to Zoopla. House values increased by 24 per cent during the same period. People's desire for gardens during the pandemic contributed to this - but worries over leasehold, which is the tenure of the majority of flats, also played a big part. At This is Money, we encounter reader after reader having issues with their leasehold home. We have heard from someone who couldn't sell their leasehold flat because the freeholder was refusing to sign the paperwork, someone facing large costs to extend the lease, a person who felt their service charge was too high and wanted justice and someone with a ground rent that was set to double. What costs come with a leasehold flat? Most leaseholders, particularly those in purpose-built apartment blocks, will have a service charge to pay to the freeholder or management company. This can include the costs of buildings insurance, cleaning, gardening, maintaining facilities such as lifts, bike lockers and communal areas, staffing a front desk if there is one, surveyors' fees, fire risk assessments and managing agents fees. The average annual service charge bill for a flat in England and Wales hit £2,300 a year in 2024, an 11 per cent increase on the previous year, according to the estate agent Hamptons. This means the reader's service charge is just above the average. Like our reader, many leaseholders also have to pay ground rent each year to the freeholder. This is a levy charged to reflect that leaseholders do not own the land their property is built on. The Leasehold Reform (Ground Rent) Act banned ground rent being charged on new leases on homes purchased after 30 June 2022. However, it doesn't apply to existing leases, including those which are passed on from one owner to another when the property is sold. Those with existing leases can now effectively reduce their ground rent to a peppercorn rent - essentially no ground rent at all - if they extend their lease through the formal route. The average ground rent on existing leases ranges between £200 and £500 per annum, according to Tayntons Solicitors, so it sounds like our reader's ground rent is definitely on the high side. Some leaseholders have found themselves trapped in homes with increasing ground rents - some which double every 10 years and others that increase in line with the Retail Price Index. It's the ground rents that double every 10 years that are the biggest red flags and can make homes hard to sell or remortgage. This is because costs can snowball from £500 to £1,000 to £2,000 to £4,000 to £8,000 over the next 50 years and so on. Having ground rent that is linked to inflation should in theory be safer, but given the recent spike in inflation there is also reason to be concerned by this clause. For expert advice, we spoke to Alero Orimoloye, advisor at Leasehold Advisory Service, Linz Darlington, managing director and founder of lease extension service Homehold, Gareth Belsham, director of Bloom Building Consultancy and Nigel Bishop, founder of buying agency Recoco Property Search. Is the £2,400 service charge a red flag? Gareth Belsham replies: On the face of it, a service charge of £2,400 a year - £200 per month - sounds reasonable given the list of things you get for it. But a key question to ask the landlord is whether the service charge also includes a provision for future maintenance costs of the building. Some service charges include an element which goes into a 'rainy day' fund - a 'sinking fund' in the lingo - which the landlord sets aside to cover the cost of redecorating or refurbishing communal areas like landings, as well as repairs to the building's fabric. You need to find out if the service charge includes this element. If it doesn't, you and the other leaseholders could get a nasty shock if ever the building needed expensive repairs like a new roof. In theory, each of you could be liable for one eighteenth of the cost, and given that a new roof might cost hundreds of thousands, this could leave you with a big bill. Nigel Bishop adds: Service charges can actually also go down but are much more likely to surge over the years, which could create a substantial financial burden for homeowners. There's no legal limit to how much service charges can increase. It depends on various factors such as inflation and subsequent price increases of service providers but also the age of the building. The older the building, the more likely the need for repairs of communal spaces which in turn drives up service charges going forward. It's therefore important to carry out research about the building, learn about reoccurring maintenance problems and determine when the service charge has last been updated. Linz Darlington adds: I appreciate £2,400 doesn't sound unreasonable for the upkeep of a modern block and its communal space. However, this could increase significantly. Unlike a house, you're unlikely to have control over what work gets done, which contractors do it, or how much it will cost. Is the 119-year lease a concern? Alero Orimoloye replies: With 119 years remaining, a lease extension isn't immediately necessary. However, if you do extend, a statutory extension reduces ground rent to nil and adds 90 years, though the landlord can charge a premium as well as their legal fees. Fortunately, proposed legal reforms are expected to make extensions cheaper and remove the need to pay the landlord's costs. Nigel Bishop adds: Typically, mortgage lenders favour properties that have at least 125 years left on their lease. Even if you did buy the property now, you might want to consider extending the lease after a few years which can be an expensive undertaking. The lease extension premium very much depends on the level of ground rent, how much is left on the lease and how much the property might be worth after the lease extension. As a general guideline, a lease extension would likely cost a minimum of £6,000 in addition to professional fees of £2,000 to £4,000. That being said, the forthcoming changes in the law will allow leaseholders to buy the freehold which can be a solution but can also create administrative challenges for homeowners long-term. Gareth Belsham adds: The 119 year lease sounds like an age, but in reality it's not that long in lease terms. When a lease gets down to 80 years, leasehold properties can become more difficult to sell or mortgage. While this flat is still several decades away from that, the clock is ticking. What about the £500 a year ground rent? Alero Orimoloye replies: A ground rent of £500, increasing with RPI every 10 years, may reduce the property's value and make it harder to sell, unless future legislation offers a fair way to buy it out. The £50,000 drop in value may reflect this impact. You can't change the rent terms unless you extend the lease. Linz Darlington replies: The ground rent of £500 is a concern. If this represents more than 0.1 per cent of what you're paying for the property, it could make it hard to get a mortgage now or in the future. Inflation has been rampant since the flat was leased and if it was reviewed today, I'd expect it to go up to around £700. It's likely to rise again in four have a right to extend your lease by 90 years and this also removes the ground rent – but the cost will be significant because the ground rent is so high. How much will it cost to extend the lease and remove the ground rent? Linz Darlington replies: Based on what you've said, a very rough estimate of the cost would be between £21,000 and £29,000, which includes the professional fees of both yourself and your freeholder. You're right to be concerned about future value – a better bet would be a flat in a smaller building with a share of freehold. Will this property be hard to sell in the future? Nigel Bishop replies: It is almost impossible to answer at this stage as, besides the lease and ground rent, other factors will have to be taken into account. Whether you will attract serious buyers when you put the property up for sale will depend on the wider economy at the time, the availability of mortgage products, the level of interest rates, general buyer interest but also the location of the property and your asking price. Alero Orimoloye replies: Local estate agents can best advise on how the lack of outdoor space may affect the property's value. Roof terrace access may add value, but since it's owned by the landlord, please be aware that they could build upwards in future. This may affect your quiet enjoyment and increase service charges, especially if the building extension exceeds 18 metres due to added legal requirements. Should they buy this property? Gareth Belsham replies: I'm sorry to say that several of the issues you've identified here raise serious red flags for me. Much as you both love the flat, buying the leasehold could expose you and your husband to several big risks. Perhaps the biggest red flag of all is the length of the lease. This may be one of the reasons that the asking price of the flat is £50,000 less than what the first owner paid for it six years ago. Granted, the first owner may have paid a new-build premium, and flats in many areas lost value during the pandemic, but I suspect the relative shortness of the lease is a factor in the low valuation. If that's an issue now, it will be far worse when you come to sell. For this reason alone, I would advise you not to buy the flat. Or if you do go ahead, make sure you do so with your eyes wide open to the risks. Sorry if you had your heart set on it, but take solace from the fact that this is a buyer's market. In many areas, the number of homes for sale outnumbers the number of buyers, so there should be plenty of less risky options - with longer leases - to choose from. Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
Daily Mirror
30-04-2025
- Automotive
- Daily Mirror
New car tax changes for April 2025 cost drivers almost £5,500 per year
Vehicle Excise Duty changes came into effect from April 1, 2025 with major updates affecting petrol, diesel and electric vehicles. The more pollution your car produces - the more it costs Drivers could be hit with an annual bill of up to £5,500 due to the new car tax changes that kicked in at the start of this month. From April 1, 2025, sweeping updates to Vehicle Excise Duty (VED) are impacting petrol, diesel and electric vehicles alike. Bills for standard VED rates have been moved up from £190 to £195 a year following inflation measured by the Retail Price Index (RPI). But it's not just traditional fuel vehicle owners feeling the pinch; even electric car owners are facing VED charges for the first time. The heftiest increases, though, are reserved for first-year rates on petrol and diesel vehicles, seeing some charges doubling. The amount of VED to cough up is also climbing alongside vehicle emissions – the more pollution your car pumps out, the deeper you dig into your pockets. Owners of spanking new motors that emit over 255g/km of CO2 are looking at an eye-watering jump from £2,745 to £5,490 in their first year. Cars emitting between 226 and 255g/km aren't getting off easy either, with their initially manageable £2,340 sky-rocketing to £4,680. And for those pushing out between 191 and 225g/km, the previous £1,650 has now leapt to £3,300 for the first twelve months, reports the Express. Electric car newbies might breathe easier: their VED debut is a mere £10 in the first year. HM Revenue and Customs officials explain, this change aims to "widen the difference" between EVs and traditional combustion engines, signalling tougher times for the latter. HMRC has clarified the ins and outs of Vehicle Excise Duty, stating: "Vehicle Excise Duty first-year rates are paid for the first year of a car's lifecycle, at the point of registration, and vary based on emissions." They elaborated on future plans by adding: "From 1 April 2025, the Vehicle Excise Duty first-year rates will be changed to widen the difference between zero-emission, hybrid and internal combustion engine cars." Motorists are advised to stay informed and verify a vehicle's emissions before finalising any purchase to avoid unexpected costs. If eager to check the emissions of a new car, buyers can request to peruse the V5C (vehicle registration document) for precise details. In car showrooms, this vital emissions data should also be conspicuously displayed on labels near the vehicles. For those who prefer digital solutions, emission specifics can be easily obtained using free online tools on websites like WeBuyAnyCar for swift emissions checks.
BBC News
29-04-2025
- Business
- BBC News
Inflation rate in Guernsey drops to 4.2%
The inflation rate in Guernsey has slowed to 4.2%, according to the latest the 12 months to March 2025, the Retail Price Index (RPI), which illustrates the cost of living in Guernsey, was 1.6% lower than during the previous figures showed housing contributed to 1.4% of the annual change in the inflation the housing group of prices, there were increases in the costs of mortgages, rents and house insurance.
