Paper Summary for 16th October 2013

Economy

According to a new forecast out today, from the Centre for Economics and Business Research, indicates that the UK’s economy will grow by 1.6% this year ahead of the expectations of major international groups, which is above previous forecasts from other groups. And it is thought that UK economic growth will speed up to 2.7% next year. The CEBR predicts that such rapid growth would be among the best in the developed world, bringing the government’s deficit to 4.7% of GDP. These figures come as welcome news, as the UK was expected to grow by only 1% this year.

Property

Prices have risen swiftly to a record quarter of a million pounds after a climb of 4% in the past year. The price of an average house in the UK shot up past its previous nominal peak during August, reaching record levels again according to  the ONS figures. For first time buyers the rise was even more rapid with prices rising 4.9% over the same period. The north south divide is growing: of the UK’s four countries only England’s average property prices have passed their pre-crisis peak in nominal terms. Banks are more willing to lend borrowers with low depsoits and confidence is rising rapidly. The underlying fact is that English prices are driven by London and the South East with every other region still below their 2008 peak levels. David Newnes of LSL Property Services points out that it is crucial that the growing momentum is also met head on by an increased supply of housing if in order to sustain growth in the long term and make certain future generations of home buyers won’t be priced out of the market.

Recruitment

New research shows that men control the highest positions in marketing, even though 75% of marketers are female, according to recruitment marketing specialist EMR. It is said the likely reason for career progression slowdown is due to women having children and the responsibilities of childcare. The most significant difference is between ages of 30 and 49 where 17% more men reach director positions.

Personal Finance

In a recent Lords debate over the Care bill, which is implementing elements of a review of the UK’s care system by economist Andrew Milmot, the Care minister, Norman Minister said that pensioners with £23,250 plus in savings and assets are “quite wealthy” as he defended plans to prevent some elderly homeowners from deferring the cost of residential care. The Government was blamed for ripping people off on a deal after it came to light that a scheme to defer a person’s care costs until after their death may be available only to people with assets, apart from their home, of less than £23,250. The Shadow care minister responded by saying they’ve discovered many older people must use up other savings and assets before they qualify for help and that many elderly people will feel angry that the Government has tried to pull the wool over their eyes about what the plans really mean. 

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