Latest news with #SarahColes
Daily Mail
5 days ago
- Business
- Daily Mail
What's YOUR inflation rate? How renting, having children and being a high earner can drive it up
Renters are facing higher inflation than those who have a mortgage, according to new data from the Office for National Statistics. It revealed that households in private rented properties had the highest annual inflation rate of 3.6 per cent in March, reflecting rising private rental costs. A big contributor has been the fact that UK monthly private rents increased by 7.7 per cent in the 12 months to March, according to the ONS, but this fell to 7.4 per cent in April. Private renters were followed by renters in social housing, who had a 3 per cent inflation rate. In contrast, mortgage-free homeowners experienced the lowest annual inflation rate of all housing types, at 1.8 per cent in the year to March. Households with mortgages had the next-lowest at 2.8 per cent. Riz Malik, director at wealth management firm R3 Wealth, said: 'Once tenant costs increase they rarely decrease, particularly with many landlords raising rents due to the 2022 mortgage rate hikes following the infamous mini-Budget. 'This gap continues to grow, and while some may manage to get onto the property ladder, many will remain part of generation rent. 'This situation is especially challenging for those in the south east or working in major cities.' Richer households see higher inflation Overall household costs, as measured by the Household Costs Index, rose by 2.6 per cent in the year to March. This is a fall from 2.9 per cent in the year to December 2024. However, inflation is slightly higher for those who earn more. It rises to 2.7 per cent for high-income households and falls to 2.5 per cent for low-income households. Inflation has dropped substantially for higher earners, though, coming in at 4.7 per cent a year earlier. Another interesting disparity picked up in the data was that non-retired households are experiencing a higher annual rate of inflation at 2.8 per cent in March than retired households at just 2.1 per cent. Sarah Coles, head of personal finance at Hargreaves Lansdown, said: 'The inflation rate slowed for retirees, and is now just 2.1 per cent - down from 3.1 per cent a year earlier. 'The change is thanks to lower bills, which tend to make up a larger proportion of the spending of this group so the cuts to the energy price cap have a disproportionately positive impact. 'Unfortunately, it means pensioners will have borne much of the brunt of Awful April, so early 2025 will only have been a brief respite from rising prices.' Retired people also aren't paying fast-rising costs associated with commuting, such as train season tickets. It is also costing more for those raising children. The annual inflation rate for households with children was 2.8 per cent in March. However, for households without children, it was 2.6 per cent. These inflation rates are likely to have risen since the data was gathered in March. Overall CPI inflation rose to 3.5 per cent in April, up from 2.6 per cent in March, driven by a huge hike in household bills. In addition, energy, water and council tax bills were hiked for many last month in what has been dubbed 'Awful April'. Coles added: 'Inflation eased in early 2025, but it still put a real squeeze on lower earners and renters. 'Unfortunately, life is only going to get tougher, as shortly after these figures were calculated, Awful April hit hard. Those same groups are likely to face the biggest challenges in the months to come.' Why is inflation different for everyone? The consumer prices index measures the average change in prices of roughly 730 core goods and services over time. This includes everything from transport to food and services. Every month, a team of roughly 300 analysts visit 20,000 shops in 141 different locations recording around 180,000 prices in the process. The truth is, there's no such thing as a single rate of inflation. Everyone will have their own because people buy different goods and services from an array of shops and sellers. It means certain individuals will have noticed the rising cost of living far more than others over the past 12 months. The changing price of dog food, for example, is not going to be relevant to someone who does not have a canine companion. Instead, Britain's national statisticians aim to create a representative basket of goods broadly reflective of the nation's shopping habits. This basket, which is used to calculate what we know as 'the rate of inflation', or the consumer prices index, is updated once a year to reflect changing tastes. For example, at the start of 2024, 16 items were added to the consumer prices index and 15 items were removed. Additions to the basket for 2024 included air fryers, vinyl records, gluten-free rice cakes and spray oil. Removals from the basket included hand sanitiser, sofa beds, rotisserie cooked hot whole chicken and bakeware. 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, whether you are a first-time buyer, home owner or buy-to-let landlord. > 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.
Yahoo
7 days ago
- Business
- Yahoo
UK sellers offer £16,000 discount on average to secure house sale
Homes are selling for an average of £16,000 below asking price as sellers try to secure a sale in a buyers' market. The UK housing market is experiencing its most active May since the pandemic boom of 2021, amid improved mortgage affordability and a surge in supply, according to Zoopla. However, while buyer interest has returned, sellers are being forced to temper their expectations. The average home is currently being sold for £16,000 below the asking price, a discount of around 3%. Changes in how mortgage affordability is assessed are fuelling buyers' return, with purchasers now able to borrow up to 20% more than they could earlier in the year. This has helped counter the effect of higher interest rates, which caused a fall in transactions through 2022 and 2023 when mortgage rates briefly hit 6%. Sarah Coles, a columnist at Yahoo Finance UK and head of personal finance at Hargreaves Lansdown, said: 'There are now plenty of [mortgage] deals priced at under 4%, which opens up affordability for so many more buyers.' Average house prices have risen 1.6% over the past 12 months to £268,250 — an increase of £4,330. Despite growing demand, price growth remains modest by historical standards, amid the lingering impact of inflation on household finances. Read more: Lenders push under 4% deals but mortgages set to rise amid inflation jump The most substantial gains are being seen in the North West of England, where employment growth and relative affordability is driving price rises. Blackburn leads with annual price growth of 5.8%, followed by Wigan (4.4%), Birkenhead (4.1%), and Liverpool (3%). Manchester posted a 2.5% increase. Martin Bennett, owner of Crown Estates and Letting Agents in Blackburn, said: 'Business is booming, with increased demand for properties both at the lower and top end of the market. This is reflected in house prices, with an entry-level property now averaging £75,000, up from around £50,000 two years ago. 'From my experience, properties that are priced correctly are going under offer within two weeks of being listed. It's not uncommon to have 10 or more viewings on the first day.' Scotland is also outperforming the national average, with prices up 2.9%, although Aberdeen remains an outlier with a 1.4% annual decline amid weaker economic conditions tied to the oil and gas sector. By contrast, southern regions are seeing an increase in supply and relatively subdued price growth. The number of homes for sale has risen 21% in the South West, 17% in London, and 15% in the South East. Price growth across these areas remains below 1%, with affordability concerns also limiting further gains. According to the latest Zoopla House Price Index, the number of sales agreed in May is at its highest level in four years, on the back of a 13% year-on-year increase in homes listed for sale. Read more: Odds of more Bank of England interest rate cuts fall as food inflation rises "More homes for sale means more buyers looking to move home,' said Richard Donnell, executive director at Zoopla. 'This, coupled with more attractive mortgage deals and changes to how lenders assess affordability, is supporting an increase in the number of sales being agreed. 'Sellers and buyers need to adopt different tactics based on where they live across the UK; however, all sellers need to keep their feet on the ground and be realistic on pricing expectations." Zoopla forecasts continued momentum in sales in the second half of 2025, with national home values expected to end the year around 2% higher than they began.
Scottish Sun
25-05-2025
- Scottish Sun
Warning for thousands on benefits who could have their payments STOPPED over summer holiday mistake
Scroll down to find out how to avoid making the mistake HOLI-PAY Warning for thousands on benefits who could have their payments STOPPED over summer holiday mistake Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) ANYONE on Jobseeker's Allowance could see their benefits slashed and even fined up to £5,000 if they make one simple holiday mistake. Those on the benefit heading abroad need to tell the DWP as it is classed as a change in circumstances. Sign up for Scottish Sun newsletter Sign up 1 A simple holiday mistake could land you in major trouble Credit: Alamy Fail to do so, and it could see your claim stopped, reduced and you might be slapped with a £50 penalty. If you're found to have deliberately not reported going away, this is classed as benefit fraud, which is illegal. In this case, you will be told to pay back any overpaid benefits you've received. You may also be taken to court or asked to pay a penalty between £350 and £5,000. Sarah Coles, senior personal finance expert at Hargreaves Lansdown, said: "There's so much to do before you go away, but if you're claiming benefits and travelling overseas, make sure you tell the DWP. "It may not seem important, but if you don't let them know you could have your claim stopped or cut – and you could even be fined." The exact government rules state that you cannot claim income-based JSA while abroad. You may be eligible to claim New Style JSA though, if you're in the European Economic Area (EEA) or Switzerland for up to three months. However, you also need to: be entitled to it on the day you go abroad register as a jobseeker at least four weeks before you leave be looking for work in the UK up to the day you leave be going abroad to look for work register at the equivalent of a Jobcentre in the country you're going to follow the other country's rules on registering and looking for work be covered by the Brexit Withdrawal Agreement Three key benefits that YOU could be missing out on, and one even gives you a free TV Licence The same rules that apply to going abroad if you're on Jobseeker's Allowance also apply to a host of other benefits. If you are on Universal Credit, you can stay abroad for one month and carry on receiving payments. But, you have to tell your work coach you're going away and carry on meeting the conditions of your claim. There are exceptions, such as if you're abroad for medical treatment (you can stay up to six months) or if a close relative passes away. Meanwhile, if you receive Personal Independent Payment (PIP), you can stay abroad for up to 13 weeks, or 26 weeks for medical treatment. How to report a change in circumstances How you can report a change in circumstances varies depending on your benefit. If you're on JSA, you have to report any changes by calling the JSA helpline on 0800 169 0310. The helpline is open Monday to Friday, 8am to 5pm. You can also write to the Jobcentre Plus office that pays your JSA, the address for which will be on any letters you get about your JSA. If you're on Universal Credit, you can send a message on your journal, or speak to your work coach. You can contact the Universal Credit helpline on 0800 328 5644, or you can textphone to 0800 328 1344 too. The line is open between 8am and 6pm Monday to Friday. If you want to speak to someone in Welsh, the number to call is 0800 012 1888. For other benefits, check the government's website.
The Sun
25-05-2025
- Business
- The Sun
Warning for thousands on benefits who could have their payments STOPPED over summer holiday mistake
ANYONE on Jobseeker's Allowance could see their benefits slashed and even fined up to £5,000 if they make one simple holiday mistake. Those on the benefit heading abroad need to tell the DWP as it is classed as a change in circumstances. 1 Fail to do so, and it could see your claim stopped, reduced and you might be slapped with a £50 penalty. If you're found to have deliberately not reported going away, this is classed as benefit fraud, which is illegal. In this case, you will be told to pay back any overpaid benefits you've received. You may also be taken to court or asked to pay a penalty between £350 and £5,000. Sarah Coles, senior personal finance expert at Hargreaves Lansdown, said: "There's so much to do before you go away, but if you're claiming benefits and travelling overseas, make sure you tell the DWP. "It may not seem important, but if you don't let them know you could have your claim stopped or cut – and you could even be fined." The exact government rules state that you cannot claim income-based JSA while abroad. You may be eligible to claim New Style JSA though, if you're in the European Economic Area (EEA) or Switzerland for up to three months. However, you also need to: be entitled to it on the day you go abroad register as a jobseeker at least four weeks before you leave be looking for work in the UK up to the day you leave be going abroad to look for work register at the equivalent of a Jobcentre in the country you're going to follow the other country's rules on registering and looking for work be covered by the Brexit Withdrawal Agreement Three key benefits that YOU could be missing out on, and one even gives you a free TV Licence The same rules that apply to going abroad if you're on Jobseeker's Allowance also apply to a host of other benefits. If you are on Universal Credit, you can stay abroad for one month and carry on receiving payments. But, you have to tell your work coach you're going away and carry on meeting the conditions of your claim. There are exceptions, such as if you're abroad for medical treatment (you can stay up to six months) or if a close relative passes away. Meanwhile, if you receive Personal Independent Payment (PIP), you can stay abroad for up to 13 weeks, or 26 weeks for medical treatment. How to report a change in circumstances How you can report a change in circumstances varies depending on your benefit. If you're on JSA, you have to report any changes by calling the JSA helpline on 0800 169 0310. The helpline is open Monday to Friday, 8am to 5pm. You can also write to the Jobcentre Plus office that pays your JSA, the address for which will be on any letters you get about your JSA. If you're on Universal Credit, you can send a message on your journal, or speak to your work coach. You can contact the Universal Credit helpline on 0800 328 5644, or you can textphone to 0800 328 1344 too. The line is open between 8am and 6pm Monday to Friday. If you want to speak to someone in Welsh, the number to call is 0800 012 1888. For other benefits, check the government's website. Are you missing out on benefits? YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to Charity Turn2Us' benefits calculator works out what you could get. Entitledto's free calculator determines whether you qualify for various benefits, tax credit and Universal Credit. and charity StepChange both have benefits tools powered by Entitledto's data. You can use Policy in Practice's calculator to determine which benefits you could receive and how much cash you'll have left over each month after paying for housing costs. Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
Scottish Sun
22-05-2025
- Business
- Scottish Sun
Huge boost for summer holidays as pounds rises to highest level in THREE years – what it means for your wallet
We've listed the alternatives when it comes to spending abroad HOLI-BOOST Huge boost for summer holidays as pounds rises to highest level in THREE years – what it means for your wallet Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) THE pound has soared to its strongest value against the US dollar in over three years. Last night, sterling was trading at £1.3468 against the dollar – its strongest level since February 2022 – bringing good news for holidaymakers chasing the sun. Sign up for Scottish Sun newsletter Sign up This is because a strong pound means that sterling has more purchasing power relative to other currencies. This also means that holidaymakers can get more for their money when exchanging cash for the summer holidays. The pound's strength is linked to what people expect the Bank of England to do with interest rates. Experts now expect the Bank of England to reduce interest rates just once more this year, instead of the three cuts previously predicted. This change is due to rising costs for gas, electricity, water, and travel, which pushed UK inflation to its highest level in 15 months (3.5%) in April, exceeding economists' expectations. With inflation higher than predicted, the Bank of England may be cautious about making more rate cuts. Earlier this month, it already reduced rates from 4.5% to 4.25%. Meanwhile, in the US, experts believe the Federal Reserve will cut interest rates twice this year. Since the UK is only expected to cut rates once, it seems more appealing to investors, pushing up the value of the pound. Countries with higher interest rates attract investors because they offer better returns on their money. Best travel money options: currency, cards and tips for spending abroad Sarah Coles, head of personal finance at Hargreaves Lansdown, said: "As a result, investors can make a better return in the UK, so money flowing here has pushed up the value of the pound against the dollar. "If you are travelling to the US this summer, it might persuade you to exchange at least some of your cash while the pound is riding high." What does this mean for my money? A stronger pound is great news for holidaymakers, as it means you'll get more travel money when exchanging cash. For example, if the pound-to-dollar rate is $1.34/£1, exchanging £100 would give you $134, compared to $132 just a week ago. To make the most of your travel money, consider ordering your currency online in advance to avoid the poor exchange rates often found at airport bureaux de change. Tools like TravelMoneyMax on can help you compare rates from different providers, ensuring you get the best deal. Alternatively, overseas spending cards are a convenient option, allowing you to avoid carrying large amounts of cash while still benefiting from favourable exchange rates. A stronger pound can also impact your pension or investments. If you hold shares in companies based overseas, their value may be influenced by currency movements, which could affect your returns.
