The Government explored the possibility of a higher share price for the Royal Mail in the weeks leading up to the sell off. However, key institutional investors indicated that they would drop out if the price rose above the 330p they eventually sold for. After investors received profits of 38% in the first day of conditional trading on Friday, there are fears the government has sold off a key asset too cheaply. However large institutional investors were unwilling to pay anymore, leading the government to believe the sale was priced correctly.
Middle class homeowners have emerged from the recession in far ruder health than those who haven’t made it onto the housing ladder according to NatCen Social Research. While homeowners have taken advantage of record low mortgage rates, non-homeowners have seen their wealth eroded by rapidly rising rents. Those with incomes of over £50,000 per household without children have increased their monthly savings average from £340 before the recession to £400 currently. Therefore the richest quintile has saved an extra £400m between 2008 and 2011. However, many more people have struggled against rising fuel costs, falling incomes and low interest rates.
The number of first time buyers hit a six year high in August according to the CML. The 27,100 made in the month represented a 7% increase on July, and a 33% increase year on year. The borrowing ratio is 3.36, up from 3.31 – also the highest level for six years. People are spending an average of 19% of their income on mortgages. (Daily Mail, p. 53)
Michael Gove’s outgoing adviser, Dominic Cummings has written a 250 page paper arguing that real talent is rare in teachers and that they should not overlook the role of genetics in learning. The claims have caused outrage even within government