quick house sale

Home loans could be cheaper until 2014, after the Bank of England members voted to keep rates at a record low of 0.5 per cent, potentially offering borrowers a lifeline.

However, it’s not such good news for savers who will see their money grow much more slowly while their buying power is hit by inflation.

According to reports in the press, there will be no rate rises for the next three years, thereby offering some reprieve to families already hit with threats of job losses and increasing living costs.

Recent figures released by the Council of Mortgage Lenders showed property purchases at around 60 per cent below the levels seen prior to the financial crisis hitting and first-time buyers are still scarce on the ground as they have difficulty getting the deposit required and meeting the tough lending criteria set by banks and building societies.

Many people, put off from moving up the property ladder, are instead investing in their homes and adding to what they already have.

Put off from moving home, with the high costs of fees, such as stamp duty, tougher lending criteria, difficulties in obtaining the necessary deposits and the tough housing market, homeowners are putting their energy into improving their current property.

Figures released by property website Rightmove revealed the first drop in asking prices this year, showing house sellers may finally be ready to drop their asking prices in order to encourage buyers.

Rightmove reported that the number of unsold properties on estate agents books had hit a record average of 78, with around 70 per cent of properties put on the market this year having failed to find a buyer.

Housebuilder Barratt Developments said first-time buyers were rushing to apply for the Government’s FirstBuy shared equity scheme.

First-time buyers have found it increasingly difficult to get a foot on the property ladder due to the high deposits demanded by lenders and under the £250million FirstBuy scheme, aimed at helping 10,000 families get onto the housing ladder, the Government and housebuilders provide a joint 20 per cent loan to top up the first-time buyers deposit of 5 per cent.

Official figures showed that the number of people claiming unemployment benefits rose to more than 1.5 million, the fastest rate for more than two years.

Last month, the number of people claiming Jobseeker’s Allowance increased by 24,500 over May and was the biggest monthly increase since May 2009.

The total unemployment figure, including those not eligible for Jobseeker’s Allowance actually fell by 26,000 to 2.45 million in the last quarter. However, those out of work for up to a year increased by 11,000.

Families are being pushed into spending an additional £260 a year on the weekly food shopping bill, due to food prices continuing to increase at a worrying rate.

Even though inflation has fallen slightly from 4.5 per cent in May to 4.2 per cent in June, in the last year, food prices have increased by an alarming 6.5 per cent. This is the biggest rise for over two years.

A report issued by a top firm of accountants, Pricewaterhouse Coopers say that the property market is not expected to recover and return to peak levels for more than a decade.

It warns that those who bought between 2006 and 2008 are among the biggest losers. At the peak of the market in 2007, the average cost of a property was just below £200,000. That same property is currently worth £160,000, which is a fall equivalent to 20 per cent of the property’s value at the peak.

Millions of families have given up hope of escaping to the sun for a break due to hard times, ever increasing prices and a fall in the value of the pound against the euro.

The slump in the value of the pound means that many European holiday destinations are more expensive than a year ago. Some tourist hotels are even offering an exchange rate of less than one euro to the pound.

The falling value of the pound has pushed up the cost of holiday destinations such as France, Spain and Italy.

Large numbers of drivers are being hit hard by the rising fuel prices, with some even getting rid of the car altogether.

Around 14 per cent of motorists plan to stop using their car or change to a more fuel efficient vehicle. Seven per cent have swapped their car for a motorbike.

The study was carried out by breakdown firm, Green Flag, after they saw a 40 per cent increase in fuel related call outs at the beginning of the year, as motorists tried to avoid filling up at expensive forecourts, then ran out of fuel.