UK House Prices are Now Stable
House prices in the United Kingdom can be considered stable for now, according to figures published in a report by the Nationwide building society. Prices in various parts of the United Kingdom went up by 0.2% during the month of July to £168,731 which now makes them just 0.4% lower compared to 2010’s prices. Nationwide said that the demand for homes is still quite slower than usual but there is a gradual increase in demand that was recorded that can be the trigger as to why the house prices are starting to stabilize. Other figures from the Bank of England showed that there is an increase in mortgage activity all over the country.
Extra Pension Payments for the UK Public Sector
There will be over two million public service employees who are bound to pay extra pension contributions starting April 2012. The extra contributions are slated for NHS workers, teachers as well as civil servants. This is due to the government trying to slash £1.2 billion from the budget for pensions in the coming year. The biggest increase in contributions will amount to about 2.4 percentage points starting April. The government estimated that about 750,000 staff members who earn less than £15,000 every year may not need to pay increased pension contributions next year. Those who are earnings an annual income of £15,000 to £21,000 will have to pay 0.6% over their usual contributions.
HMRC Paper Problems Cause Delay in Statement Deliveries
The United Kingdom tax authority, HM Revenue and Customs, was not able to order sufficient amount of special paper in order to print out statements regarding unpaid tax, causing a delay. People who have filed self-assessment tax returns should receive a statement through the post that lists the tax due with the payments made on or before the 31st of July. However, due to the delay, the deadline has been moved for 500,000 people. The HM Revenue and Customs sends two statements to the people along with a reminder that they should pay their tax dues by the 31st of January and 31st of July. The recipients of such statements are sole traders, self-employed, and business partners, as well as those with limited liability partnerships.
UK Economic Growth Only at 0.2%
The economic growth of the United Kingdom slowed down during the second quarter of the year due to the extra bank holiday that was held in April. The gross domestic product went up by 0.2% according to the Office for National Statistics which is 0.5% less than the figures recorded in the first quarter of 2011. The Office for National Statistics also announced that the growth of the economy of the country was also slow due to other events such as the tsunami and earthquake disaster in Japan. According to Chancellor George Osborne, the growth is actually great news for the country however Ed Balls said that the Chancellor choked the recovery of the country.
Low Interest Rates on Children’s Accounts Still Remain
Interest rates that are being offered in UK banks for children’s accounts still remain very low and this does not encourage parents or children to save for their future, according to the consumer group Which. Their survey has shown that children’s savings accounts have interest rates of just 1.1% and may go as low as 0.05%. The lowest interest rate identified was that of First Trust Bank’s Junior Saver Account. With this result, First Trust has taken action to look into their rates once more and review it for their customers. They intend to review their pricing structure and connect with their customers in the next few weeks. The organization Which is hoping that more banks will follow suit and do as First Trust bank has done.
