Monthly News Round-Up – October
31/10/2013
October has left some people feeling hot and cold due to a mix of positive and negative news that included British Gas and a host of other major energy providers increasing their average prices by as much as 12%. However, there has been some good news in regards to the general economy which has seen the GDP rise by 0.8% in the last three months, whilst house prices are rising at a record rate.
Economic News
There was positive news overall in terms of the economic recovery as official figures from the Office of National Statistics (ONS) announced that UK GDP grew by 0.8% in the last quarter, which was even more positive considering the previous three months saw a further 0.7% growth.
Additionally, there was even more good news in regards to the UK economy which has seen unemployment fall by more than 18,000 in the last three months to less than 2.5 million. Furthermore, those claiming Job seekers allowance fell by a further 41,700 to 1.35 million, which is consequently the lowest level since January 2009.
Property and Mortgage News
The renewed faith in the property market continued throughout October as house prices were reported to be increasing at their fastest rate in three years. This is largely driven by an increase in demand for property which seems to be largely driven by government initiatives such as the ‘help to buy scheme’ which guarantees up to 20% of a mortgage. Furthermore, due to the success of the scheme, it was decided that the scheme was to be extended three months earlier than planned in October so that it would apply to all houses, as opposed to just newly built houses.
Pensions News
During October it was revealed that less people than expected are dropping out of the mandatory pension scheme set up by the government, suggesting that the economic crisis might have helped to create a nation of savers. However, not all pension schemes were doing so well, with the UK’s largest pension scheme, which caters for university staff facing reporting a deficit of £10.5 billion.
Household bills News
There was lots of news regarding household bills this month; however October was dominated by the fury sparked by British Gas and a host of other major energy suppliers increasing their prices by as much as 12%. This has led to 25% of over 65’s worrying about how they will stay warm over Christmas, and is equally as bad news for students who were revealed to be facing a cost of living crisis.
However, despite this, there was some positive news in October for household bills which includes an initiative to make it possible for mobile users to switch mobile phone contracts mid-term if the provider increases their prices. Furthermore, other good news included petrol prices falling by 5.4 pence per litre in October, the biggest fall since November 2008, just in time for winter when cars generally use up more fuel.
Banking news
The big news in October was that the Co-op group look set to lose control of the Co-op bank due to facing a huge deficit. A deal is in place to sell as much as 70% of the banking group, however, the Co-op group will still remain the largest individual shareholder, giving them effectual control of the group.
Investment News
The privatisation of Royal Mail in October led to investors making an instant return on their investment as shares rocketed by as much as 38% in the first day of trading. Whilst this did raise concerns that the government undervalued the organisation, Vince Cable rejected this, stating that “what matters is when the price eventually settles in three months time.”
Loan News
The Financial Conduct Authority (FCA) is planning to, tighten regulations around the payday loan industry due to concerns being raised about the ethical issues such as irresponsible lending that are surrounding the industry. These regulations will include warnings on adverts, limitations on how often they can authorise a continuous payment authority (SPA), a limitation on the number of loan roll overs allowed, and the introduction of a mandatory affordability check before any loan is approved.
Need Advice?
If you have a financial question and need advice, please contact our advisers who will be happy to help.
Share this..