Italians elbow Russians aside as biggest buyers of top London homes

Italians have overtaken the Russians as the biggest group of foreign owners buying prime London property.

According to research by Knight Frank, the property company, 7.3pc of all London purchases in the first two months of this year were made by Italians, up from 2.1pc in the same period last year. Russians made 7.2pc of purchases in the prime London index, which covers homes worth £3.7m on average.

Experts said the change represented a flight to London by overseas investors who want to preserve their wealth in the face of political and economic upheaval in the eurozone. Around 3pc of purchases in these two months were by Greeks, pushing Greece - at the centre of the eurozone crisis - into the top five nations buying London luxury homes.

The index covers the 13 most expensive areas of central London, including Belgravia, Chelsea, Knightsbridge, Mayfair, Notting Hill and St John's Wood. It found that the average price of luxury residential properties in these locations rose by 0.7pc in February.

Liam Bailey, Knight Frank's head of residential research, said he believed that prices would continue to rise in the coming months. "To recap on the current position, prices are now 8.9pc above their previous peak of March 2008 and have risen at a rate almost double that seen in previous upturns. This has been a very strong upturn.

"The rationale for the revival has been well rehearsed: weak pound, plus capital flight, plus rising global wealth, minus thin supply, equals rampant price inflation.

"There is much truth in the above formula, and a careful examination of transactional market data confirms that the process seems set to deliver further growth, at least in the short term."

Lending rates hit all time highs

Banks are squeezing households by record amounts with high interest rates on overdrafts, mortgages and credit cards, despite the Bank of England base rate being at an all-time low.

Figures from the Bank of England (BoE) show that the gap between the interest being charged on the average mortgage and the central bank’s base rate of 0.5 per cent are the highest since records began in January 1995 

Figures from the Bank of England (BoE) show that the gap between the interest being charged on the average mortgage and the central bank’s base rate of 0.5 per cent are the highest since records began in January 1995.

The average lending rate on overdrafts is 19.5 per cent, also the highest since comparable records started.

Credit card holders are also being hit. The average interest rate being charged on credit cards is 17.3 per cent, the highest for 11 years, the BoE said.

Experts accused banks of profiteering at a time when lending rates should be low. The BoE’s base rate has been at its current low rate for three years.

Lord McFall of Alcluith, the former chairman of the Treasury Select Committee, said that the public are losing trust in the banking sector.

FACT 

"At Heart Finance  we search the entire market in order to help you find the best deal you possibly can.

We are committed to offering our customers the highest possible 

standards of service

We recognise that both we and our customers have everything to gain if we look after your best interests and treat you fairly in all aspects of our dealings with you

Only recommend a mortgage or financial services product that we consider suitable for you and that you can afford – Our lenders charge the lowest fees of all - and always the most suitable from the available options " 

“This inverse relationship between low interest rates and increasing charges by the financial community makes the public feel at a loss in terms of getting a fair deal,” he said.

The BoE’s figures show that the average interest rate on a Standard Variable Rate (SVR) mortgage was 4.16 per cent in January. The difference between that figure and the base rate is 3.66 per cent. This gap has not been higher in 17 years.

Mortgage levels are set to rise even further.

Halifax, the UK’s largest mortgage lender, said over the weekend that it will raise its SVR from 3.5 per cent to 3.99 per cent in May, affecting an estimated 850,000 borrowers.

The increase means someone with a £150,000 mortgage, repayable over 25 years, will pay £39.99 more each month.

Royal Bank of Scotland also increased its rates.

The record lending rates come as savers receive next to nothing on their bank deposits. According to the BoE, the average interest rate on a deposit account in January was just 0.2 per cent, the lowest since the spring of 2010.

Indebtedness in increasing across the UK.

Figures released yesterday from Credit Action showed that the average household debt in the UK, excluding mortgages, was £7,975 in January, up from £7,951 the previous month.

Including mortgages, the average household debt was £55,988, an increase of around £150 on the previous month.

In total, the average British adult owes banks and other lenders the equivalent of 122 per cent of average yearly earnings.

Research released last week from The Co-operative Bank found that over two-thirds of UK adults have admitted to having debt problems. However those in debt do not believe that they have money worries until they have accumulated an average of £1,247 of debt in overdrafts, credit card bills or other types of loan.

The BBA, which represents British banks, said that increased gap between the base rate and rates that banks charge borrowers does not mean that their profit margins are increasing. It said that the cost at which banks raise funding has increased since the credit crisis.

From the Telegraph

Three of four families are financially "on the edge"

The survey of more than 2,000 mothers found that one in five was regularly missing meals so her children could eat.

Almost two-thirds (64pc) have less money coming in than this time last year, and 61pc are short of money every week.

Almost a third (30pc) have borrowed money from friends and family, a quarter (24pc) are living on credit cards and one in 20 has taken out a bank loan to fund everyday living.

Netmums founder Sally Russell said: "It's shocking that seven in 10 families in the UK today are living on the edge of existence - but it's a crisis that needs exposing.

"Mums shouldn't be missing meals to feed their children or turning to loan sharks in modern Britain.

"Family finances are so strained that any more pressure will turn this personal crisis into a catastrophe for the nation."

A spokeswoman for the Department for Work and Pensions said: "Our welfare reforms will have a dynamic impact on some of the poorest families and will lift over one million people out of poverty. We continue to support low income families and put £6.5 billion a year into financial support for lone parents, but we know that debt remains a real driver of poverty.

Fact 

If you are looking to earn some extra cash, don’t assume
the whole of British business is struggling.

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"This is why we need credit unions to be supported and strengthened to ensure that illegal loan sharks can't plague the homes of vulnerable people and offer a real alternative to doorstep and payday lenders. We are working on the best ways to help credit unions expand and modernise so that more families can have access to affordable credit."

If you are struggling with Debts ... 

" Heart Finance, through the debt advisor,  are dedicated to offering you sensible advice on debt issues and advising you of the most appropriate solution which will help bring relief from debt.

According to a  survey, not many people are familiar with Debt Management Plan, 
A Debt ManagementPlan (DMP) throughHeart finance is an informal agreement between you and your creditors that enables you to restructure your debt in a way you can realistically afford to repay.

Are you struggling with Debts ? Getting FREE  from your 
debts is easier than you think! 

• f you want FREEDOM from DEBTS  you can :

• Repay your debts without the need for a loan
• Freeze interest and charges
• Let our advisor deal with your creditors on your behalf
• Have one monthly repayment - tailored to you

Fallen for your first property? Seal the deal by Valentine's Day!

First-time buyers who want to benefit from the current stamp duty holiday will have to find their new love nest by Valentine's Day, a property firm has calculated.

First-time buyers who want to benefit from the current stamp duty holiday will have to find their new love nest by Valentine's Day, a property firm has calculated.

The current first-time buyer exemption from the 1pc tax for properties under £250,000 runs out on March 24. However, property group Move With Us calculates that it takes 39 days on average between an offer being accepted and the transaction being completed, meaning that February 14 is the last possible date for home owners to put an offer in.

"Although the Government is ending the stamp duty relief exemption because it says it has not been popular, if you are a first-time buyer and looking to buy soon then you would be a fool not to try and take advantage of it before it ends," said Robin King, director of Move With Us.

"While we are is keen to stress that whilst these are average figures, aspiring home owners who want to qualify need to get a move on to find their dream home, as well as having the necessary documentation ready to speed up the purchase."

Stamp duty on a house worth £200,000 is £2,000, so the exemption represents a significant saving. To be eligible, both members of a couple have to be first-time buyers.

FACT 

"At Heart Finance  we search the entire market in order to help you find the best deal you possibly can.

We are committed to offering our customers the highest possible 

standards of service

We recognise that both we and our customers have everything to gain if we look after your best interests and treat you fairly in all aspects of our dealings with you

Only recommend a mortgage or financial services product that we consider suitable for you and that you can afford – Our lenders charge the lowest fees of all - and always the most suitable from the available options " 

Wendy Evans-Scott, of the National Association of Estate Agents, said that the proportion of first-time buyers had risen slightly late last year, but still represented a low percentage of average sales.

"It is impossible to predict what impact the end of the tax exemption will have on first-time buyers, particularly those on very tight budgets of under £250,000 for whom the 1pc tax could be disastrous," she said. "The Government will need to monitor sales closely and consider other action to support the fragile first time buyer market."

From The Telegraph 

Average pay rise fails to match inflation

UK families to be squeezed further as it is revealed inflation will dwarf average payrise.

The squeeze on cash-strapped households is set to continue this year after businesses said they plan to award average pay rises of just 1.1pc.

With business employers only expecting salary increases to rise slightly from last year's 0.9pc hikes, the report by ICAEW/Grant Thornton warned that "with the effects of inflation it will feel like a pay freeze for the majority of employees".

The report also found that the private sector will not create jobs quickly enough to stop unemployment rising, although small businesses will be hiring faster than larger companies.

It urged Chancellor George Osborne to use next month's Budget to boost business as it predicted the UK will slip back into recession in coming months.

Companies' confidence levels remained depressed at a reading of minus 9.3 over the three months to the end of January, having failed to recover significantly following its collapse in the previous three months. It said the measure is a reliable indicator of economic growth, suggesting that GDP will fall by 0.2pc in the first quarter of 2012 – the same amount it contracted in the previous quarter, pushing the UK economy back into an official recession.

Fact 

If you are looking to earn some extra cash, don’t assume
the whole of British business is struggling.

Heart Finance are now recruiting agents throughout the United Kingdom to promote our business.

Did you know? - Every day more and more people are starting their own home based businesses to achieve flexible working hours, independence and more family time. Whatever the reason, we are sure you will agree that the Heart Finance agent opportunity is an exciting opportunity for you to work from home and build your business. You can achieve a level of success with all the backing of a franchise, only without the massive investment.

Click here to Download our agent brochure and find out more.

The survey found that businesses are reining in on investment amid the gloom and job creation plans remain "subdued".

ICAEW chief executive Michael Izza said: "This survey shows that businesses are responding to concerns about the economic outlook by cutting back on investment in equipment and people.

"This is at a time when Government desperately needs businesses to be growing.

"At the moment, it is hard to see where this growth will come from and the Chancellor needs to use the forthcoming budget to give businesses reasons to be more confident about the future – and unlock potential investments."

Shadow business secretary Chuka Umunna said: "Businesses up and down the country are struggling because ministers are cutting spending and raising taxes too far and too fast, choking off growth before the effects of the eurozone crisis were brought to bear on the UK economy."

From The Telegraph 

Breaking point: The families and pensioners crippled by soaring debt

Soaring average debt is pushing families and pensioners to breaking point as they sink deeper and deeper into the red, two new reports warn today.

One study found that one in five workers is in debt when they retire, often with a large mortgage and a personal loan. On average they owe £38,200.

Another report showed that the average family’s debts have ballooned by nearly 50 per cent over the last year.

In January last year, such families had average debts of £5,360. But this has soared to £7,944.

This does not include mortgage debts, only ‘unsecured’ debts such as an overdraft or a loan. If mortgages were included, the average family’s debt would be £110,000.

The first study, by insurance giant Prudential, polled more than 1,000 people who plan to retire this year.

On average, they will be spending £260 a month, a fifth of their monthly pension income of £1,290, just to pay off their debts.

Men’s debts tended to be much larger than women’s, at an average of £45,300 compared to £29,400.

 

Fact 

" Heart Finance, through the debt advisor,  are dedicated to offering you sensible advice on debt issues and advising you of the most appropriate solution which will help bring relief from debt.

According to a  survey, not many people are familiar with Debt Management Plan, 
A Debt ManagementPlan (DMP) throughHeart finance is an informal agreement between you and your creditors that enables you to restructure your debt in a way you can realistically afford to repay.

Are you struggling with Debts ? Getting FREE  from your 
debts is easier than you think! 

• f you want FREEDOM from DEBTS  you can :

• Repay your debts without the need for a loan
• Freeze interest and charges
• Let our advisor deal with your creditors on your behalf
• Have one monthly repayment - tailored to you

Vince Smith-Hughes, a retirement income expert at Prudential, said: ‘Retiring with outstanding debts could be a sign of a lack of financial planning.’

The second report, from insurance firm Aviva, found many of the 10,000 families polled were meticulously planning their food shops to avoid waste and search out value brands.

But it also suggested that people ‘prioritise spending on immediate purchases and luxuries’, rather than facing up to the need to protect their families.

Around 50 per cent of families have a monthly satellite TV package, but only 40 per cent have life insurance.

from the Mail online

Could shops charge you more for products you've tweeted or 'liked' on Facebook?

Online shops already have a frightening amount of information at their fingertips - from whether you've purchased from them before, to what sites you've visited before you arrive at their shop, accessible via browsing history.

But new start-ups could move the idea to a new level - harvesting information from sources such as Facebook and Twitter to 'tweak' prices to what customers are willing to pay. 

In other words, if you've 'Liked' something, prepare to pay for it. 

One web entrepreneur, Alex Gannett, founder of CampusSplash says that 2012 will be 'the year of behavioural pricing' - a new type of e-commerce, where prices will be tweaked to include what customers are willing to pay.

Using such freely available information isn't an out-there idea. 

Demdex, acquired by Adobe last year, has built a business on harvesting user information from 'cookies' - invisible internet files -  to build up a picture of what audiences like so that advertisers can target people more effectively.

Tweaking prices to suit the individual could be the next step. 

The idea has already started raising privacy alarm bells. 

 

FACT 

"

GREAT DEALS ON SHOPPING, AND YOU WILL BE REWARDED WITH CASH BACK! ABSOLUTELY FREE .

WE HAVE HELPED REWARDING OUR NETWORK MEMBERS WITH OVER £20 MILLION POUNDS AND LOOK FORWARD TO HELPING YOU EARN MONEY TOO. 

YOU WILL EARN MONEY WHEN YOU RENEW YOUR HOME OR CAR INSURANCE, COMPLETE FREE TRIALS AND EVEN FOR SIMPLY VISITING WEBSITES, NOT FORGETTING YOUR EVERY DAY SHOPPING. IT'S VERY SIMPLE TO DO AND IT WON'T COST YOU A PENNY!

HOW IT WORKS

•  MAKE SURE YOU CLICK "CASHBACK SHOPPING" THROUGH FROM OUR SITE BEFORE YOU BUY ANYTHING ONLINE.      WWW.HEARTFINANCE.CO.UK
• DON'T FORGET, YOU WILL BUY THE SAME PRODUCT OR SERVICE FROM THE SAME RETAILER AT THE SAME PRICE, ( EBAY, AMAZON, BOOTS, VODAFONE, TESCO AND MANY MANY OTHERS!!)  THE ONLY DIFFERENCE IS YOU WILL BE REWARDED FOR DOING SO! ( TYPICAL OFFER: EBAY 50%  CASHBACK ON THE REVENUE EBAY EARNS FROM ALL OF YOUR WINNING BIDS AND BUY IT NOWS!) 
• THE ADVERTISER WILL TRACK YOUR PURCHASE AND REPORT TO US THE AMOUNT YOU HAVE EARNED.

YOU CAN THEN CHOOSE TO HAVE YOUR EARNINGS PAID TO YOU AS AMAZON GIFT VOUCHERS WITH A 5% BONUS

OR VIA BACS INTO YOUR BANK ACCOUNT.      "

Gannet writes, 'This year will mark the end of static pricing. The use of your tweets, credit score, and web history in e-commerce pricing is frightening—but ultimately unavoidable.'

Gannett describes the idea as a 'consumer's worst nightmare, a merchant's dream'. 

Chris Simpson, Chief Marketing Officer at price comparison website Kelkoo says, 'There are many pricing policies already used by retailers that most consumers are completely unaware of.'

Chris Simpson, Chief Marketing Officer at price comparison website Kelkoo says, 'There are many pricing policies already used by retailers that most consumers are completely unaware of.'

'These include things like regional pricing variations in the same stores across the country, not to mention retailers using different pricing structures for the same products in stores and online.'

Shops already harvest information from loyalty card programmes, and also use credit ratings to decide what rates some customers should pay for products such as loans. 

Gannett writes, 'Online marketers have dramatically increased the amount of behavioral data they have on consumers. It comes from a complex network of web histories, demographic records, loyalty programs, and increasingly, social media profiles. 

In the last few years, behavioral data has matured and gained widespread acceptance and usage in online advertising. Startups like Demdex  allow advertisers to access “databanks” of behavioral information on users, and target advertising to them.' 

Kelkoo's Simpson says that although the idea seems like a next step for businesses, it may be hard to work in the real world - particularly when web shoppers are fond of using apps and comparison sites to track down the best bargains.

Simpson says, 'Whilst behavioural pricing might seem like the next logical step, it is a hugely complex initiative for retailers to implement.'

'The danger of this pricing strategy is that if ‘social savvy’ shoppers became aware of it, it could lead to a social media boycott destroying a retailer’s reputation very quickly.'

The great thing about price comparison sites like Kelkoo is that we offer customers price transparency. In essence, customer data does not influence the prices that are displayed on our website.'

From The Mail Online