Now prices are returning to more normal rates, going shopping may be less stressful and buying yourself a treat for the week could become more viable. Supermarkets are always competing with each other to offer the best rewards and prices to entice customers to make them their regular shop.
Certain supermarkets are now introducing a new incentive for shoppers in the form of challenges through their loyalty schemes. These new features are encouraging spending in supermarkets which could lead to over-spending.
M&S and Waitrose also have loyalty schemes where you can earn points and save money in store. Aldi does not yet have any loyalty scheme in place.
The average person is signed up to three different supermarket loyalty schemed in a way to save money and shop around to find the best deals and lowest prices.
Tesco, Asda, Morrisons and Sainsbury’s have all added a new feature to their loyalty schemes, offering their members bonus points for hitting targets. The schemes set spending targets and challenges which when met will reward the shopper with more savings and rewards.
The supermarkets claim this feature give their shoppers a more personalised saving option as the scheme can track their shopping habits and offer savings on items they regularly buy. The challenges include timeframes too which promotes frequent spending in the same supermarket.
This new feature comes after inflation levels resume to more ‘normal’ rates and food prices begin to slow.
Rewards and savings are always great incentives to buy more and add that low cost item in the bag that you don’t need but will help you reach the target. Doing this often can lead to an accumulation of unnecessary items as well as a bill you could have avoided.
The new loyalty scheme feature encourages misguided spending and could lead to shoppers losing more money than they think they save.
Data from Kanter research shows that the average person has 3 loyalty cards for different supermarkets. The most efficient and money savvy way to shop is to look around for the best deals and not to shop in the same supermarket for everything.
Having loyalty cards can be a great way to shop as you can build up reward points leading to savings later or receive instant deals on items. However, they should be used to buy your regular items and you should avoid being tempted to spend on unnecessary items because of the marketing of a saving.
There are many ways to save on your shop including, avoiding impulse buying, sticking to your list an more.
The average asking price for a house in the UK has reached a record high in May according to online property portal Rightmove.
House prices have reached £375,131 as national average for this month, compared to the £372,324 average that was found for April.
It’s not unusual for prices to climb upwards during the spring season, as its often the busiest time of year for the housing market.
Yet Rightmove said that they have seen house priced edge up higher for every month since the turn of this year, reflecting the confidence of sellers that they can secure a better deal for their property.
The rise in growth has been driven by the prices of larger homes at the top of the market.
This has been seen in particular with five bedroom houses and detached houses, it’s a similar trend that Rightmove saw play put for last month.
More owners of these type of homes have been placing them up for sale, which is a reverse of the pattern of recent years as there has been significant evidence that there has been a pause in house sales of this sector in the market.
Rightmove property expert Tim Bannister said that while the top-of-the-ladder market is still leading the way, it’s important to remember that prices overall are still only 0.6% ahead of this time last year.
The market still remains price-sensitive, and with average asking prices reaching new records in most regions, and mortgage rates remaining elevated, meaning that affordability for many home-buyers is still stretched.
Figures from Rightmove showed that the national average asking price for first time buyers was £228,003 for May, a rise of £893 from April.
While for second time around buyers the average price was £343, 268 for May, in comparison to £342,501for April, which was the average asking price for the pervious month.
The online group also said that it found that the most common amount of time it takes to find a buyer is 62 days, but completing the deal and handing over the keys is taking longer up to 154 days, or around five months.
If you are looking to move house by the time that Christmas comes around, it would be a good idea to start now.
The latest house price index released by the government agreed with Rightmove that house prices are moving upwards.
This is despite the uncertain climate over when interest rates will start to be cut, which has prompted mortgage lenders to increase lending rates for fixed two and five year deals.
In March house prices rose by 0.7% in comparison to February the index showed, and there has been an annual price rise of 1.8%, meaning that the average property in the UK valued at £283,000.
It’s a significant turnaround for the 12 months to February, where the annual house price growth figure went into negative figures with prices falling by a minus 0.2%.
The UK Property Transaction Statistics revealed that the number of house deals completed in March with a value of £40,000 or more was 84,000.
But compared to a year ago this was 6.5% lower.
Also, major mortgage lender Nationwide found that house prices had gone down in April, as potential buyers continued to face financial pressures combined with the higher cost of borrowing that turned them off purchasing a home.
Overall prices had fallen by 0.4% compared to the prices it found in March.
The next decision on interest rates by the Banks of England will take place on 20 June, the Banks’ deputy governor Ben Broadbent recently said that interest rates could be cut in the summer.
The general election is set for 4 July, and as a result we are highly likely to see a stabilizing in the housing market over the next few months according to Rightmove.
Yet for many 2024 was finally the year to make their next move, after the huge challenges that the past four years have delivered, such as the Covid pandemic, a housing shortage and fast moving prices.
While property website Zoopla does not believe that the election will have an influence on the housing market, mainly because the lack of any real divisions in housing policy from both the Conservatives and Labour.
The main focuses have been on the reform of the private sector and the increase of house building.
However due to the election being called, the number of completed sales may now fall slightly short of the 1.1m that Zoopla forecast for this year.
Conservatives, Labour and the Lib Dems have promised they will not be increasing Income tax, VAT and national insurance if they come into government.
This is coming at the official 5 week campaign begins and all MPs now considering candidates for each party.
Jeremy Hunt, the conservative Chancellor has clearly stated the promise for no tax increases, this came before a claim that Labour have plans to raise taxes. Shortly after Rachel Reeves, the labour Chancellor have stated they do not plan to increase and want taxes to be lower for working people not higher.
Lib Dems to triple tax on large social media companies which would bring in £1.5bn to fund their pledge for therapists and mental health professionals in all schools including primary and secondary.
With the parties promising lower taxes and no rises to come, how will public spending be funded?
The Institute of Fiscal Studies is warning the public that whoever wins may have to raise taxes or cut spending to maintain the economy.
Rishi Sunak makes the claim that Labour’s plans will cost working families £2000 each. The in fighting between parties is expected to continue leading up to the election in July.
Energy regulator Ofgem has announced good news for households as energy bills are due to fall from July as the energy bill cap has been adjusted.
From 1 July to 30 September the price for energy in a typical household who use electricity and gas, will go down to £1568 per year.
Overall, it‘s a fall of £122 per year, compared to the price cap set from 1 April to 30 June 2024 £1690, a 7% drop in price..
You are covered by the cap if you pay for your electricity and gas by standard credit a payment made when you get your electricity and gas bill, direct debit, a prepayment meter or on an Economy 7 meter.
Every three months Ofgem review and set a level on how much an energy supplier can charge for each unit of energy.
If you have a standard variable tariff, you will pay on average 22.36 pence per kilowatt hour (kWh) for your electricity.
The daily standing charge is 60.12 pence per day, which is based on the average across England, Scotland and Wales and includes VAT.
While the gas prices are to be an average 5.48 pence per kWh, where the daily standard charge is 31.41 pence per day, again this is the average across England, Scotland and Wales and also includes VAT.
The latest cap means that bills are to be the lowest they have been in the past two years, and are at their lowest level since the Russian invasion of Ukraine in February 2022 that sent energy prices spiralling upwards.
Yet compared to before the Covid-19 pandemic, bills are still more expensive and in contrast to three years ago energy prices are around £400 higher.
The announcement by Ofgem follows a prediction by influential consultancy Cornwall Insight, who also said that energy bills would be reduced by 7%.
If your energy bills are more than what you can pay there are some ways that you can approach the problem.
For example if you are paying estimated bills then get in touch with your provider to begin to supply you with actual energy meter readings, that are often less compared to estimated energy use.
You can also ask your energy provider for a pause over your payments to give you some respite, but be warned that your energy company does not have to agree to any pause agreement.
If this is the case then you can make a complaint to your supplier, and state your case once more.
You might be able to repay your debt directly from your benefits through the Fuel Direct Scheme.
Currently a fixed amount will automatically be taken from your benefits to cover any energy debt, they might take an extra amount for your current use if you agree to these terms.
You must be claiming Income-Based Jobseeker’s Allowance, Income Support, income-related Employment and Support Allowance, Pension Credit or Universal Credit to qualify for the scheme.
There are many ways that you can keep control of your energy bills that can save you money.
A smart meter is a good way to keep in contact touch over the amount and cost of your energy use.
When it comes to heating your home reduce the temperature on your thermostat, which will save you a significant amount.
Another measure is to reduce the flow temperature on your combi boiler by as little as 9% (80°C – 60°C), and see a notable drop in your energy bills.
Although not all systems are adjustable in this way so check with your supplier.
Other more simple ways to cut your bills are to only heat your home when you are inside it, and do not heat rooms that are not occupied.
Also make sure that you draught proof your house, it would be best to insulate your house in areas such as door fittings, chimneys, floorboards, hot water pipes, keyholes,
Letterboxes, lofts and window fittings.
You can also take action in trapping heat in your home , by simple acts such as closing your curtains or blinds.
Do not waste energy by overfilling your kettle, and investing in a slow cooker would be beneficial as they are a highly energy efficient appliance.
Avoid using large pots and pans to cook with as they take more time to heat up, and it would also help to defrost you freezer regularly as this will mean that less energy is used to keep it at the temperature that you want.
Also make sure that you fix leaky taps as they can cost you, and it is also beneficial to use a water efficient shower head.
The conservative party has announced a plan for a ‘triple lock plus’ pension which is meant to place pensioners in a beneficial position if they win the general election.
They have promised tax cuts for pensioners with a triple lock plus, this would be a £2.4bn tax cut.
Currently State pension rises in line with highest earnings or inflation or 2.5%, whichever is highest. This allows pensioners to have an increased income as the cost of living increases. The current system should see state pension rise by £430 by next April.
The new announcement will allow pensioners to get a personal tax allowance which will rise in line with triple lock meaning the tax allowance will always be higher than state pension. This will give pensioners an exception from paying income tax which many were concerned about when the state pension increased.
The triple lock currently meant that pensioners could have to pay income tax as the state pension rose to just below the income tax threshold. Any pensioners receiving the state pension as well as a personal pension could easily hit the tax threshold meaning they would be losing their money on an already typically small income.
This plan is expected to save 8m pensioners around £100 next year and up to £300 a year by 2030.
Implementing tax cuts for pensioners allows them to keep hold of their income, a policy which the conservatives introduced for pensioners to pay income tax is now being frozen in the lead up to the election.
The triple lock will be funded through their plan to raise around £6bn a year by clamping down on tax avoidance and evasion.
A study carried out by the Equity Release Council (ERC) has found that 61% of those asked said that they might turn to equity release to boost income.
Overall 5,000 adults took part in the survey as part of the council’s Home Advantage study.
The latest research showed that there is a rise in homeowners looking to release money from their property, as the same survey three years ago revealed that a lower total of 57% said that they would look to equity release.
Homeowners from the age of 55 can then begin to access any equity on their properties via a release product.
The ERC research has also revealed the growing role of property to help fund a comfortable retirement.
Due to “ultra long” mortgages which run beyond the state pension age, just 26% said that they would they would rule out taking money from the equity of their homes when they are at an older age.
Nearly two in five of those asked or 39% said that releasing equity is becoming more common, while the same figure said that it is seem as more usual to take out a mortgage in later life.
According to the ERC, both measures have increased from 34% since 2021.
Almost half of homeowners aged 55 and over now see property wealth as an avenue to of satisfy later life financial needs.
While younger homeowners are becoming are more open to leaning on their property wealth in older age, with three quarters below 55 who said that this would be an option for them.
There was a bigger shift in attitude over the past three years amongst the 35-44 age group, where 78% said that they would be taking money from the value of their home.
This is up from 67% from the 2021 survey.
The survey found that they main motivations for equity release include paying for care at home where 17% said that was their main concern, whereas 16% said it was to boost retirement income, and 15% said that they would put any equity gain aside for travel plans.
Nearly one in seven are interested in ‘giving while living’, by gifting money from their property wealth towards a deposit for a first home for a younger family member.
So what is equity release?
Equity release is essentially a range of products, that allows you to access the equity or cash that is tied up in your home when you are aged 55 and over.
There are two equity release options, lifetime mortgages where you take out a mortgage secured on your property provided it’s your main residence, while still being the owner.
You are able with this option to ring fence part of the valuation of your property as an inheritance.
The loan amount and any built-up interest is paid when the homeowner passes away or moves into long term care, but it is possible to make repayments rather then let the interest climb upwards.
It’s important to note that interest rates can be fixed or variable.
Also make sure the product has a “no negative equity guarantee”, which means that when your property is sold and agents’ and solicitors’ fees have been paid, if there is not enough left to repay the loan to your provider you or your estate is not liable to pay any more.
Secondly there is home reversion where you sell your all or part of your home in return for a lump sum or regular payments, a clause which needs to be checked out.
You have the right to keep living in the property until death , but also you have to agree to maintain and insure it.
You are again able to ring-fence a percentage of your property for later use, for example for an inheritance by only selling part of your property.
The percentage you retain will always be the same regardless of any change in value of the property, that is unless you decide to take further cash releases.
When the last borrower dies or moves into long-term care your property is sold, after the sale the proceeds are then shared according to the remaining proportions of ownership.
Before you turn to a home reversion equity plan, make sure that you check the minimum age that a provider allows you to sign up for one, which can range between 60 and 65.
Also look out for the percentage of the market value that you will receive, this will increase the older that you are and might vary between providers.
With 16m pet owners in Britain the consensus on prices in the pet industry is largely, very unhappy! With vet prices increasing and pet insurance doing the same it is becoming harder for people to afford their beloved pets.
In 2023 just in the months of July to December pet insurance prices rose by 13%. Since February 2023 to 2024 prices have risen by 21%.
Insurance companies are on a basic level, a business looking for profit and to do so they must hike their prices when needed.
Overall inflation has forced all sectors to increase prices, as treatment, medicine, wages and more become more expensive finding an affordable vet’s have become impossible. For insurer’s to afford to pay out for the more expensive vet bills they have risen their customer prices.
New treatment options such as specialised scans and more which have appeared on the scene over the past few years have also risen prices and they have risen bills which insurers need to pay.
The age of you pet and where you live will also determine the cost of your insurance.
In Britain there are around 16m household with at least one pet, a large market for vet practices pet services. Many people feel that their vet practice is overcharging for prescriptions and treatment services including medication.
The CMA have launched an investigation into the vet industry which is expected to take around 18 months to finalise the findings. They estimate the vets market is worth £5bn a year.
The Office for National Statistics (ONS) estimates the cost of vets and other pet services has increased by 50% since 2015 which high above the overall inflation rates.
Could they be taking advantage of owners' love for their pets and the growing rate at which people are buying pets?
Increases in vet bills are also causing pet insurance prices to rise.
One factor the CMA is concerned about is the limited choice owners are given for vet practices. This is because since 2013 over half of Britain’s 5000 vet practices have been bought by 6 large firms.
These firms include, CVS Group, Pets at Home, VetPartners, IVC, Linnaeus and Medivet.
Often, when the firms buy practices they will maintain the name and look giving the illusion the practice is independent and reducing the look of competition when owners shop around.
Make sure to shop around for Vet’s, you may have to go further afield to find cheaper options. This also includes researching the practice and whether they are owned by one of the 6 large firms or not and comparing prices to others in the area.
Ask the vet for all possible treatment plans available and if you feel you aren’t getting the whole story, get a second opinion.
Look into buying safe medication online or in pet shops, if you are unsure ask a qualified vet for advice.
Vet’s and employees at practices have reported facing more cases of abuse from pet owners since the announcement of the investigation as owners express their anger over prices. Often those who work in the practice do not set the prices and have no influence to do so, they will be following policy and vet regulations.
If you are upset by prices or services then look around for a new practice and report the information to CMA for their investigation so regulations can be altered.
Rishi Sunak has announced the election will be held on the 4th July.
After 14 years of conservative rule, they are now behind in the polls and on July 5th the country could have a new Prime Minister. Manifestos are expected to come in June.
Make sure you are registered to vote so you can have your say!
Campaigning has already began with Rishi Sunak starting his tour of the country in the next two days. Sunak has already relayed that flights to Rwanda will not take place until after Rwanda, is this a ploy to keep the potential success or failures of the plan until after the election?
Keir Starmer, Labour leader is heading to the Southeast of England. He has began in Kent telling voters 'it's time for a change.'
Richard Tice, the Reform leader is staging a press conference to set out his party's plans. Nigel Farage has stated his plans to skip standing in the general election this year.
Ed Davey, the Liberal Democrat leader is set to focus on targeting conservative held seats after by-election successes.
Updates to come!
It was announced this week that inflation rates have finally fallen to a ‘normal’ rate of 2.3% after a long road of rising rates. This is much closer to the Bank of England’s target of 2%.
The Bank of England has held their rates at 5.25% setting this to tackle the rising inflation. With the inflation rate falling so significantly this could mean the UK could see rates coming down this year. Inflation falling typically means the mortgage rates can fall with it.
The rising wages set in April and the energy price cap which was set in April as well this has been a driving factor in falling inflation.
Financial markets predict a cut in June or August for mortgage rates with the inflation rate holding steady.
2 out of a 9 person monetary policy committee voted for a 0.25% cut in interest rates which is an improvement from just 1 vote previously. This could be a sign they are on their way to making the cut.
Economists predict that the interest rates could be cut to 4.75% or 4.5% by the end of 2024 and by the end of 2025 to 3.5%.
The forecasted inflation rate was 2.1% before the announcement this week of 2.3%. This slight difference could add concern that it is not falling as quickly as predicted and the Bank of England could see this as a reason not to cut interest rates.
The bank of England set the base rate which is currently at 5.25% which sets the rate of borrowing money for mortgages and other loans. For first time buyers this has made it almost impossible to get onto the property market with the cost of living and high interest rates making it a challenge to save enough. In May the average 2 year fixed rate mortgage was around 4.74%.
In the first quarter of 2024, repossessions increased by 36% as people struggled to pay off their mortgage.
Those who are remortgaging this year could be in a for a lucky break if the interest rates fall in time allowing them to get a better deal.
The research firm, Kanter found that inflation has fallen to 2.3% which is a drop from 3.2% in April.
This announcement is encouraging to hear and brings hope that the UK is on the right track as this is the lowest level in three years.
Shoppers are still opting for own-brand labels rather than branded products in the supermarkets. Own-label is out performing brands and makes up 52% of total spending. People are saving their money each week and choosing cheaper options.
The energy price cap set to £1690 in April which was a £238 drop has been described as a key reason for the drop in inflation figures.
With inflation falling and the hope that this continues the bank of England could cut mortgage rates from their current hold at 5.25%.
Economists believe the rates could be cut to 4.75% or 4.5% by the end of 2024 and then cut to 3.5% by the end of 2025. This would be closer to their goal of 2%.
The Euros and the Olympics held in the summer this year are expected to create a rise in shopping especially in the purchasing of alcoholic drinks.
The government borrowed £20.5bn in April which is £1.2bn over the Office for Budget Responsibility. During the pandemic and due to the Russian invasion in Ukraine it has been necessary to borrow money to support the economy and help the public through these times says The Treasury.
Inflation is slowing down gradually which means prices are not increasing as much. With this trend continuing and now the UK is officially out of the recession the public is spending more and boosting the economy allowing prices to slowdown.
