Daily Paper Summary: 29th August 2013

Economics

In his first public speech as governor of the Bank of England, a defiant Mark Carney said that although he has ‘tremendous sympathy’ for savers blighted by the low bank rate, his priority is to build a stronger economy to help them, rather than raising rates. Carney confirmed plans that the bank rate will not be raised until unemployment falls to 7% – the “staging post” at which the bank rate will be reassessed. He also revealed plans to ease capital regulation of the eight largest banks and building societies in the UK, by cutting their capital buffers by a collective £90 billion. The Telegraph commented that Carney ‘only hit one wrong note’ – seeming willing to further central bank money printing if the economy worsens. They likened this move to “offering a drug addict another chance of a hit.” (The Times p.2, Telegraph B1, FT p.1, FT p.3, Guardian p.25)

Personal Finance

The average first-time buyer in London now needs a £200k loan, according to Becky Barrow of the Daily Mail. Figures out yesterday from the CML show that the average first-time buyer takes out a mortgage of £192,640, and has a deposit of 25%. Brian Murphy, head of lending at the MAB, commented: “Access to the property market is clearly improving, despite warnings of an impending housing bubble.” David Newnes, director of LSL property services warned that “too few homes are coming onto the market when demand is high.” (Daily Mail p.8)

Property

Planning minister Nick Boles had launched another attack on campaigners opposing the development of housing on green-field sites, according to the Telegraph.  It emerged yesterday, that he criticised campaigners once more, making the argument that all houses stand on what was once a green site, so it should be okay to build on these sites in the future. (Telegraph p.2)

Recruitment

Jobless households have hit a new low, according to stats out yesterday from the ONS. The number of British households holding no employment is now at its lowest rate since records began in 1996, falling by 182,000 in the past year. That leaves 3.5million workless households in Britain – roughly 17% of all homes. But the ONS said figures had been skewed by an ageing workforce, rather than reduced number of long-term benefit claimants. (The Times p.21, Telegraph B5, FT p.3, Guardian p.13)

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