8.8m people would only be able to last a week on their savings according to research from HSBC. A third of people have less than £250 in accessible savings to act as a financial safety net should they lose their main source of income.
George Osborne said Britain is on the path to prosperity and is enjoying a recovery many countries would crave in his speech at yesterday’s Festival of Business. An unexpected fall in inflation to 2.2% appears to reinforce the chancellor’s words. However, the business editor counsels against getting too carried away by that, pointing out that the biggest contributing factor was the impact of higher university fees on CPI last year.
Mortgage lending to home buyers has hit its highest level since the recession according to CML figures. £27bn of loans were approved in Q3 – the highest level since 2007. ONS figures revealed house prices continue to rise, especially in the capital where prices rose 9.3% in September alone. Peter Rollings of Marsh and Parsons said “The London market is singing from a different sheet” and pointed out that half the homes in prime London are now worth £1m or above.
Young people are experiencing a “jobless recovery” according to research from IPPR as the youth unemployment rate is now 3.74 times the adult rate. More than 950,000 young people are unemployed and almost a third have been looking for a job for more than a year. The research found evidence of this growing trend well before the recession started suggesting the problems are systemic as well as economic.