While the number of mortgage approvals is at half its peak in the boom years of the past decade, prices remain above their long-term average in terms of multiples of earnings. In part, this is caused by a shortage of property, especially in London and the South East. But this is far from a full explanation given Britain has only just emerged from a double-dip recession.
2012 REVIEW: A golden year (but not for our wallets) - Fuel bills soared, pay and investments slumped ... when the only bonanza was at the Olympics, Financial Mail was there to help
The Diamond Jubilee and London Olympics made 2012 a year to remember. But little of the joy crossed over into the nation's finances as Britain endured another year of austerity. This week the focus is on the wider financial world and the main challenges facing savers, investors, borrowers, pensioners and homebuyers during 2012. ...read
DON'T MISS
- Couple's 'Frankenstein investment' ends in disaster: Up to 200 investors abandoned by Arch Cru rescue scheme
- 'The day I missed out on a retirement bonanza': Thousands lose out on hugely generous annuities as details are buried in the small print
- TONY HETHERINGTON: Outrage as loan firm raids bank account after requesting details over the phone
- Cut the cost of car rescue: Avoid a £250 tow charge with cover for breakdowns
- DAN ATKINSON: Reality dawns over living standards
- Super Sunday and Manic Monday: High street braced for the invasion of the bargain snatchers
- LISA BUCKINGHAM: Fear stalks the banks when we need their help The potential for legal actions and large settlements over banking scandals is coming
- I've saved for 25 years, but my insurer refuses to pay final endowment bonus I've been told by Aviva that it will not pay a final bonus
- MIDAS SHARE TIPS: Poised to motor The group making tags that boost car plant productivity
- 'Our ten-year fight to win justice from film scheme fraudster' As many as 60 investors bought into the pitch of a woman offering low-risk profits
- JEFF PRESTRIDGE: Blame FSA for Arch Cru almighty fiasco The Arch Cru debacle has been a regulatory fiasco from start to finish
- 'I bought £500 worth of presents for £100': How online questionnaires, cashback and savvy money saving can save Christmas
- Savings trick: Drip feed a regular saver to beat low fixed rates Should I stick £3,600 into a fixed-rate account or a First Direct 8% regular saver?
COUNTDOWN TO CHRISTMAS
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CITY & BUSINESS
TAKING STOCK: Imbalance in British merger activity can be viewed positively
It might show that UK business is quite sensibly steering clear of risky investments abroad, while British firms are seen by foreign investors as more secure assets to buy. Bankers and other advisers are unanimous that 2013 should see more deals than this year. But their own interests are likely to bias their view towards optimism.
Latest from Markets
- TAKING STOCK: Imbalance in British merger activity can be viewed positively
- London cab maker Manganese Bronze may owe £4.9m
- Racecourses run their last as Northern Racing slips into red
- Mobile networks face £600m-a-year fees after spectrum auction for 4G services
- Glasses Direct looks to Continent with acquisition of Nordic retailer LensOn
- Hewlett-Packard expected to announce Autonomy sackings
- Revenue record for Formula 1 championship-winning team Red Bull Racing
- Regus in £40m bid for London's largest serviced office firm
MONEY NEWS & ADVICE
Cut the cost of car rescue: Avoid a £250 tow charge with cover for breakdowns
Breakdown cover might seem an expensive luxury, but if you are stranded on a freezing roadside on Christmas Day you will be more than thankful to have it. Over Christmas an estimated 23million trips will be made by car, and recovery firms are gearing up for one of their busiest periods. ...read
THE INTERVIEW: I don't let my wife write cheques - and she won't let me design branches, says Metro Bank's Vernon Hill
Vernon Hill, pictured with wife Shirley who designs Metro Bank's interiors is brash, commanding, imposing and intimidating all in one - as well as a super advert for any entrepreneur hoping to make a mark. After all, this is the man who built Commerce Bancorp from scratch into a top American bank and made $400million when he sold out five years ago. ...read
LISA BUCKINGHAM: Fear stalks the banks when we need their help
The potential for legal actions and large settlements over banking scandals is coming as society desperately needs them to start lending in a normal way, without which we have little or no prospect of returning to anything like economic wellbeing.
TONY HETHERINGTON: Outrage as loan firm raids bank accounts
Tony Hetherington fights against injustice, dodgy dealing and plain old bad customer service. This week a Star Loans case, a query about Equitable Life and a complaint about Santander. ...read
INVESTMENT EXTRA: Just how good are professional stock-tippers?
Every day the City churns out thousands of pages of research on hundreds of quoted companies in a bid to identify the market’s winners and losers. But how reliable are they? ...read
Good news for holidaymakers, but bad for the economy: Value of pound strengthens against two-thirds of G20 states in 2012
It strengthened by as much as 19.1 per cent against the Argentinian peso, 18 per cent against the Sri Lankan rupee and 11.8 per cent against the Japanese yen. The currency's performance is great news for British holidaymakers, who will have seen their spending money while abroad going further than in 2011. ...read
MORE BUSINESS, CITY AND ECONOMY NEWS
Young women's car insurance 'will rise' by £300 today - but men could see a £180 drop as EU gender ruling hits
Young female drivers will bear the brunt of new European rules which come into force today and could deliver a £300 increase to their average cost of car insurance. This is despite the fact that young females are statistically safer drivers then young males - young men are twice as likely to suffer a serious collision.
YOUR MONEY ESSENTIALS
Amazon is ranked best online Christmas shopping experience as retail websites close doors to last-minute shoppers
John Lewis, Play.com and Apple also fared well in a Christmas customer satisfaction Index calculated by ForeSee, which surveys the top 40 online retailers in the UK. At the bottom of the table is Ryanair, with a score of 61 – down three points on last year and a full seven points behind its nearest rival Netflix, in second-to-last spot. ...read
Direct insult: Energy customers' rage at direct debit errors that leave them hundreds of pounds in debt - or credit
Direct debit is supposed to be the cheapest and most convenient way to pay your bills but one in ten of all complaints related to energy prices is about these types of payment.
The next environmental disaster or a cheap energy panacea? Dare investors take a bet on fracking?
Britain may be on the brink of an energy revolution that could help millions of families with the soaring cost of heating their homes. Last week the Government gave the green light to a controversial gas-drilling technique called fracking. Ministers hope this will cut our dependence on Russian and Saudi oil, and help to keep energy bills lower.
Vanishing act: 351 savings accounts disappear this year and November was blackest month so far
The number of savings accounts have fallen drastically since the start of the year and plummeted fastest in November, leaving savers with limited options.
Inflation remains stubbornly at 2.7% and sends savers on wild goose chase for real returns
Inflation remained unmoved at 2.7 per cent in November, official data revealed today, with higher food costs and the first energy price hike by supplier SSE offset by a fall in fuel prices. To beat that rate of inflation, basic rate tax payers need an account to pay at least 3.39 per cent to make any money in real terms.
Premium Bonds winners
Prize value | Winning bond No. | Area |
---|---|---|
£1,000,000 | 90GM135935 | Bedfordshire |
£100,000 | 141GA754129 | Northern Ireland |
£100,000 | 183AM191540 | Derbyshire |
£100,000 | 175LJ952414 | Grampian |
£100,000 | 123LA629254 | Norfolk |
£100,000 | 90CS186047 | West Yorkshire |
£50,000 | 114PW077705 | London |
£50,000 | 32RL699242 | Inner London |
£50,000 | 137YX135681 | Warwickshire |
£50,000 | 40YK759809 | Leicester |
£50,000 | 115FC086870 | Wiltshire |
£50,000 | 4DV901566 | Cornwall and Isles of Scilly |
£50,000 | 66FV746591 | Surrey |
£50,000 | 17RP987409 | Barnet |
£50,000 | 167EA764626 | Nottingham |
Latest reports from News
- Facebook next big firm in the spotlight over tax affairs as it reportedly 'siphons' £440m into an offshore haven
- DAN ATKINSON: Reality dawns over living standards
- Public sector staff demand pay rises to smash 1% limit
- LISA BUCKINGHAM: Fear stalks the banks when we need their help
- Taxman offers deal to end dispute with celebrities putting their money into film schemes
- Top earners are hardest hit by the big squeeze
- Politicians trapped by public opinion into into crowd-pleasing attacks on banks, says BBA head
- Misery for retailers as recovery hopes nosedive: Chains in despair after pessimism deepens over abysmal takings
- 2012 REVIEW: A golden year (but not for our wallets) - Fuel bills soared, pay and investments slumped ... when the only bonanza was at the Olympics, Financial Mail was there to help
- Is it wise for small firms to break into a pension if the banks won't lend?
- 'We're committed to the UK': How one tea company is achieving record sales by staying in Britain
- Small business owners' fury over new VAT loophole
- RUTH SUNDERLAND: Predictions of the euro's demise in 2012 proved premature
- Good news for holidaymakers, but bad for the economy: Value of pound strengthens against two-thirds of G20 states in 2012
ANSWERS FROM THE Experts
- TONY HETHERINGTON: Outrage as loan firm raids bank accounts
- ASK THE EXPERTS: I've saved for 25 years, but my insurer refuses to pay final endowment bonus
- How can I get my finances back on track in 2013?
- Should I stick £3,600 into a fixed-rate savings account or save into the First Direct 8% regular saver instead?
- Will I lose part of my retirement income when flat-rate state pension comes into force?
- ASK TONY: Halifax won’t cover my damaged garage wall...and now I’m cracking up
- I have just started uni and am finding it hard to budget - how do I avoid going to the Bank of Mum and Dad?
- ASK THE EXPERT: Can I trace a Safeway's pension dating back to the Seventies?
- ASK THE EXPERTS: Can creditor offset the PPI payout due to me against my debt to it?
- If I sacrifice £5,000 of my salary into my pension can I halve the tax I normally pay on my buy-to-let income?
Latest from Investing
- MIDAS SHARE TIPS: US takeover to add more thrills for Lo-Q investors as tip price rockets
- MIDAS SHARE TIPS: Investors in festive spirit as shares treble at savings firm Park Group we tipped
- MIDAS SHARE TIPS: Poised to motor…the group making tags that boost car plant productivity
- JEFF PRESTRIDGE: Blame Financial Services Authority for Arch Cru almighty fiasco
- 'Our ten-year fight to win justice from film scheme fraudster with four aliases'
- Couple's 'Frankenstein investment' ends in disaster: Up to 200 investors abandoned by Arch Cru rescue scheme
- INVESTMENT EXTRA: Just how good are professional stock-tippers?
- The next environmental disaster or a cheap energy panacea? Dare investors take a bet on fracking?
- Cazenove UK Smaller Companies: Head away from the big boys to reap rich returns
Latest: Mortgages & home
- House prices stay high despite depressed activity in property market amid the economic storm
- ANALYSIS: As complaints about lettings agents grow, is it time to regulate them to help tenants and buy-to-let landlords?
- Top 20 house price winners and losers of 2012 revealed: South surges while the North slumps
- 'We were burgled just six days before Christmas': Don’t fall victim as burglaries boom over festive season
- Newcastle Building Society is latest lender to axe interest-only mortgages
- UK's property market imbalance laid bare: House prices jump 3.4% in London but slump 11.7% in Northern Ireland
- Buying a property is cheaper than renting in 90% of towns with York topping the list
- Property market gets a mortgage boost but struggles for direction: What next for house prices?
- Quarter of first-time buyers believe it will take them at least a decade to save a deposit
Currency | Rate | Buy now |
---|---|---|
Updated 23 Dec 2012. | ||
Euro | 1.2 | Buy Now |
US Dollar | 1.58 | Buy Now |
Australian Dollar | 1.5065 | Buy Now |
Canadian Dollar | 1.5662 | Buy Now |
Chinese Yuan | 9.7123 | Buy Now |
Croatian Kuna | 8.9408 | Buy Now |
Czech Koruna | 29.866 | Buy Now |
Danish Kroner | 8.8739 | Buy Now |
Egyptian Pound | 9.4663 | Buy Now |
Euro | 1.2 | Buy Now |
Hong Kong Dollar | 12.229 | Buy Now |
Hungarian Forint | 335.21 | Buy Now |
Japanese Yen | 133.45 | Buy Now |
Malaysian Ringgit | 4.774 | Buy Now |
New Turkish Lire | 2.8075 | Buy Now |
New Zealand Dollar | 1.9106 | Buy Now |
Norwegian Kroner | 8.7486 | Buy Now |
Polish Zloty | 4.799 | Buy Now |
Singapore Dollar | 1.9261 | Buy Now |
South African Rand | 13.452 | Buy Now |
Sterling | 1.0 | Buy Now |
Swedish Kroner | 10.246 | Buy Now |
Swiss Franc | 1.4502 | Buy Now |
Thai Baht | 47.603 | Buy Now |
UAE Dirham | 5.8031 | Buy Now |
Latest from Saving & banking
- THE INTERVIEW: I don't let my wife write cheques - and she won't let me design branches, says Metro Bank's Vernon Hill
- Packaged current accounts: Everything you need to know about paying a monthly fee for your banking
- NatWest-RBS face customer backlash as it cuts perks on packaged Advantage Gold current account while increasing cost
- Banks and building societies force savage cuts on old savings deals
- ING Direct mortgage and savings customers set to have accounts transferred to Barclays in March
- EXCLUSIVE: Lloyds TSB to stop selling packaged accounts in branches until bank 'amends the sales process'
- Savers suffer double whammy of falling savings rates and static inflation
- Minnow Shepshed Building Society set to be gobbled up by Nottingham BS next July
- Thousands of Britons could be paying 70% more than needed to set up Power of Attorney
- Turn your tiny terrors into little savers this Christmas with by gifting them an account
LATEST ON HOUSEHOLD Bills
- 'I bought £500 worth of presents for £100': How online questionnaires, cashback and savvy money saving can save Christmas
- Amazon is ranked best online Christmas shopping experience as retail websites close doors to last-minute shoppers
- Tesco broadband pushes up line rental by 8% - but some will see bills go down in pre-Christmas tariff reshuffle
- The Big Six energy price hikes are all in, so is time to switch? Take control of your bills and potentially save hundreds
- Bulk of energy customers are paying too much because of 'loss-leading' online deals
- Energy customers' rage at direct debit errors that leave them hundreds of pounds in debt - or credit - with their supplier
- Why online film rental could cost you more than going to the cinema
- You can take back granny's Christmas jumper: What to do with unwanted gifts
- Worst phone, broadband and TV services revealed as watchdog says TalkTalk, Orange and T-Mobile get most complaints
- £2 to talk to the taxman: HMRC phone delays leave customers with £33 MILLION a year in call charges
Latest: money and Cars
- Cut the cost of car rescue: Avoid a £250 tow charge with cover for breakdowns
- Young women's car insurance 'will rise' by £300 today - but men could see a £180 drop as EU gender ruling hits
- Top ten cheapest cars to insure: The used and new motors that can cut drivers' premiums
- As new EU rules are set to send women's car insurance costs soaring, here's how to get the cheapest car insurance
- How a little black box under the dashboard could cut your car insurance as EU rule change is set to hammer female drivers
- Ten cars that held their value best in 2012 - and 4x4s dominate once again
- Car insurance for women up 15% ahead of new EU gender rules kicking in next week
- Whiplash injury claims targeted after 60% rise in just four years pushes car insurance premiums £90 higher
- 'I broke down and then got a parking ticket at a motorway service station': The trick to beat private car park fines
Latest from Pensions
- 'The fateful day I missed out on my chance of a retirement bonanza': Thousands lose out on hugely generous annuities as details are buried in the small print
- Financial Mail investigation: Do you have a right to a guaranteed annuity rate?
- Auto-enrolment loophole could throw lifeline to low-paid who can't afford to pay into new pension scheme
- Thousands of men cash in pensions to beat gender neutral rules - so what will happen to annuity rates today?
- EU gender equality rules could cost men £10k in annuity income during retirement
- Women worst affected by decision to raise earnings trigger for automatic pensions
- Get an estimate of your state pension entitlement online or through the post
- How comfortable a retirement income could a £1.25m pension pot actually get you?
- 'Income from my drawdown plan has dropped by £100 a week': When will pensioners benefit from U-turn?
- Should you stake your pension on house prices? Property funds tempt investors, but experts warn of risks
- 'I was left with nothing after my divorce': Why even happy couples should keep assets in their own names
Latest from Cards & loans
- Personal loans getting cheaper all the time as AA slashes long-term rate to 5.6%
- Young and old being denied best loan rates despite earning a decent wage
- Warning for firms which dip into your account as OFT issues new guidelines in crackdown
- Debt trap lurking on low-cost credit cards in the shape of sneaky fees
- Wonga launches 'buy now, pay later' instant loan option on furniture retailer's online store
- Your round again? More than £2bn racked up in unpaid debt between friends
- We're no Scrooges: Average adult spends over £20,000 on Christmas over working lives
- EXCLUSIVE: Google crackdown on payday lenders - websites must follow new rules or see their ads banned
- Firms warned about signing unwitting customers up to 'continuous payment traps' by OFT
FIX YOUR FINANCES
- This is Money's five favourite cash Isas Essential Isa reading kept up-to-date throughout the year
- Should you fix your mortgage? The latest on the best deals and what next for mortgage rates
- How to plan for a richer retirement Whatever your age, there's a plan for you. Follow our decade-by-decade guide
- How to pick the best DIY investing Isa We explain how to decide and pick five of the best (and cheapest) available
- Energy bills: Is it worth switching? What are the best deals and should you fix?
- How to get out of debt Read our ten-step guide to getting back into the black
- Eight simple steps to fix your finances You can find out everything you need to know in 30 seconds
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