Today’s Paper Summary: 15th November 2013

Property

As the Government’s Help to Buy scheme takes off and the economy grows stronger, house prices will increase across the UK by 7% next year and 5% in 2015. The improving economy is expected to transform the country’s property market. Average prices in London will jump by £76 each day in 2014 but every region will enjoy a rate of growth last seen before the financial crisis, according to a new report by Knight Frank. 

Many first-time buyers feel that buying in London is a struggle and that half the battle is finding out what help is available. Recently it was found that third of wannabe homeowners have lost all hope of buying according to L&Q’s housing association. A study of 2,000 under 35’s revealed that despite government help, up to 70% of those who have been saving had given up and blow the cash on holidays, cars or even to pay bills as the state of the market and the recession eliminated their property plans. In London for instance, prices have risen and it is difficult for a vast majority to find affordable accommodation, which has meant shared accommodation has become an option for many people. Shared ownership is said to be a flexible and affordable route – it was originally launched to help low-paid workers buy affordable homes but the part-buy part-rent scheme is now mainstream. 

 Canary Wharf is getting ready to welcome a 74-floor skyscraper. The tower will be Europe’s tallest purely residential building. Ryan Corporation U.K. Ltd. paid 100 million pounds ($160 million) for the site of the proposed skyscraper, the closely held company said yesterday in an e-mailed statement. The 242-meter (794-foot) high tower would be the tallest in London’s second-largest financial district and the apartments would have a total value of more than 1 billion pounds when it opens in 2018.

Personal Finance

Families could be about to celebrate a drop in the cost of their weekly food shop as Asda fired the opening shots in a new supermarket price war. The company will knock £1 billion off prices over the next five years it said yesterday and accused rivals of ‘gimmicks’ in offering customers vouchers while boosting prices.

Rising energy bills are said to be killing off British poinsettia plants. It is thought the Christmas staple red pot plant will be in short supply this year with growers hit by rising energy costs. For millions of families the plant is as important at Christmas time as the turkey or Christmas tree.  But sadly there may be disappointment as the plant is getting increasingly more expensive to heat, as they need carefully controlled temperatures of between 59F to 68F – and unfortunately soaring fuel bills have driven some growers out of business. 

Economy

News of a slowdown in the Eurozone has created a somewhat a bleak outlook, and has reduced people’s hopes of a rebound as suggested earlier in the year as Europe’s two largest economies stumbled in the second quarter – Germany and France. By contrast, the British economy grew 0.8% in the third quarter this year, it’s most significant level of growth since 2010. The UK economy could reach what the Bank of England officials have referred to as ‘escape velocity’ sooner than until recently expected. The banks Monetary Policy Committee also warned that a global slowdown posed the greatest threat to the recovery. And reports today that disappointing growth figures in the Eurozone and Japan driven by weak export numbers have dashed hopes that a global economic recovery would gather pace in the year’s second half.

 

 

 

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