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Letting agent Harry Dhaliwal calculates average Briton spends £11,100 on rent before buying first home

Elliot

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18 March 2016

Letting agent Harry Dhaliwal calculates average Briton spends £11,100 on rent before buying first home

A survey carried out by Manchester based letting agent Harry Dhaliwal of the Belvoir group has found that the average Briton spends £11,100 on rent before buying their first home.

The study of UK homeowners was carried out ahead of forthcoming changes to buy-to-let stamp duty being introduced in April, analyzing the UK rental market.

Letting agent Dhaliwal commissioned the research which also found that the average person rents for over three years before buying their first home. The survey also found the that young Brits on average leave their parental home under the age of 21 to rent their own place.

Dhaliwal commented, “Sometimes the rhetoric around generation rent becomes quite exaggerated and whilst the rental market is growing so is the quality and variety of rental property. The findings of our survey highlight that renting across the UK is not as expensive as sometimes reported and most people get full deposits back from landlords. It remains to be seen what affect the stamp duty changes to buy-to-let purchases will have in April.”

“Whilst the struggles for first time buyers in London and high rental cost in the capital are well documented, the picture across the UK in general may not be as grey as it is sometimes depicted. There are superb professional opportunities in most of the UK’s main cities and in the digital age the flexibility around employment and running a business mean renting or buying outside London has probably never been more attractive.”

The data gathered also indicated that 58.93% of British people believe it is financially unwise to rent, 24.69% do not view renting as unwise. Spending an average of £11,100.67 on rent, the average Briton shells out £577.64 on letting fees when renting and £587.93 in security deposits.

Of those deposits an average amount of £511.73 is recouped by renters, with 80% of people getting full rental deposits back.

Wider UK rental market data shows that 22% of households in Great Britain are now rented from private landlords, up from 9% in 1985. The average rent in the country is £761 per month including rents in London, though excluding London the average drops to £689 per month across the rest of the UK. Average monthly rent in London is now £1560.

The Decline in Equity markets: Why a volatile economic climate is to blame

News

Elliot

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17 March 2016

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The Decline in Equity markets: Why a volatile economic climate is to blame

Historically, the equity market was considered as something of a safe haven. From dividend investment in blue chip firms to the proliferation of value stocks that emerged in the wake of the great recession, equity options have always appeared in a more favourable context within more volatile markets.

The landscape has changed in recent times, however, thanks primarily to a unique combination of factors that have come to the fore across the globe. The result of this is that equity markets have fallen noticeably over the course of the last financial quarter, with Sanlam reporting that some UK and U.S indices declined by 6% by the end of December.

How Volatility has undermined the Equities market

The situation is even worse in Germany and China, where major stock indices have fallen by 9% and a staggering 15% respectively. The decline of Chinese stocks has been particularly influential in dictating the market’s malaise as a whole, with China such a prominent and driving force in the global economy. With the devaluation of the Chinese currency having also continued at pace, both equity markets and similar options have experienced huge volatility during the last three months.

While the uncertainty that surrounds the Chinese economy is highly detrimental to global growth, there are other factors that are also responsible for the current levels of volatility. The shift in oil prices offer a relevant case in point, as a pronounced decline in value during the first half of 2015 has been followed by a sudden increase of 45% from the 13-year low recorded in February of last year. This growth is expected to be temporary, however, with the current price rises largely unsustainable and likely to deliver another near-time decline.

What is next for the Equities market?

The situation is unlikely to get any better in 2016, with a tentative economic recovery encouraging some nations to consider hiking their interest rates. If countries such as the U.S and UK attempt to do this too soon, however, currencies could weaken and lead to further equity market declines. While a fundamental understanding of interest rates will help equity investors, they do little to counteract declining currency values and spiralling APR.

These factors contribute to a mixed and largely unpredictable global economy, and one that is conducive to long-term or sustainable growth. This is worrying news for investors, who will be placed at greater risk when committing their capital to both stocks and even dividend equities in the future.

Investors will need to therefore think long and hard when tailoring their portfolios in 2016, especially if they are to minimise risk and optimise their potential returns.

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Ten key points from George Osborne’s 2016 budget

Elliot

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17 March 2016

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Ten key points from George Osborne’s 2016 budget

Here is ABC Money’s quick ten point guide to the main points made by Chancellor of the Exchequer George Osborne in his 2016 budget, announced on 16^th March.

EU referendum

Osborne set out his pro-European stall by acknowledging that the Office for Budget Responsibility believe a possible ‘Brexit’ may have a negative impact for the confidence of consumers and industry.

Tax allowance

There is an increase to £11,500 of tax free allowance for workers by next April and a restated target to take this figure to £12,500 by 2020. From this April it will be £10,800. There is also an increase in the ‘40p tax threshold’ to £45,000 from next April and to £42,385 from next month.

Savings

From this April there will be an increase in the Isa limit to £20,000, there is a new lifetime Isa for £4,000 of savings and Osborne also announced tax relief on financial advice.

Corporation tax

By April 2020 corporation tax is set to be reduced to 17%.

Stamp duty

From Thursday 17^th March 2016, commercial stamp duty will be zero from properties up to £150,000, at 2% on the next £200,000 and with a top rate of 5% on £250,000.

Growth and austerity

The chancellor revised down forecasts for economic growth for 2016 to 2%, from the previously forecast 2.4% for 2015 and 2016 from the autumn statement. Meanwhile Osborne is pressing ahead with further austerity measures, some of which come from cuts to benefits for the disabled. He is aiming for a further £3.5bn of state savings by 2019-20.

Fuel duty

Taxes on fuel have been frozen for the sixth successive annual budget, potentially saving £75 a year for the average driver.

Energy commodities

The energy industry have been handed £1bn in tax cuts, with ‘supplementary charges’ on oil and gas being cut from 20% to 10%.

Education

Schools are to become academies, there is greater emphasis and focus to be put on schools in the north of England, maths will be taught to all pupils up to the age of 18

Alcohol

And to end on a positive note for ABC Money’s readers who like a tipple, duty on beer, cider and whisky has been frozen.

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Global oil prices may have reached rock bottom

Elliot

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14 March 2016

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Global oil prices may have reached rock bottom

The International Energy Agency (IEA) are reporting that global oil prices are stabilising and could even begin to rise in the weeks and months ahead.

An over supply of oil in the market has been an issue for a sustained period with huge output from the USA flooding the supply chain following the spread of fracking. China’s slowing economy has seen demand for oil drop in the giant Asian powerhouse which also pushed oil prices down.

Many large oil companies have made significant job cuts, exploration projects have been curtailed and profits have fallen.

Member nations of the oil-producing organisation Opec have been reluctant to slow supply levels in order to bottom out the oil price, due to concerns of losing market share.

However American production is forecast to drop by 530,000 bpd in 2016, with the IEA stating, “There are clear signs that market forces are working their magic and higher-cost producers are cutting output.”

An increase in oil supply from middle eastern territories such as Iran has also been lower than first forecast, which also eases the over supply fears. Prices for oil have dropped globally by 70% since June 2014, even hitting a low of $27 per barrel earlier this year.

“Iran’s return to the market has been less dramatic than the Iranians said it would be; in February we believe that production increased by 220,000 bpd and provisionally, it appears that Iran’s return will be gradual,” the IEA added.

The IEA, predicts non-Opec output will now decrease by 750,000 barrels per day (bpd) in 2016, significantly more than a previous forecast of 600,000 bpd.

Brent crude oil prices increased last week 1.9%, up to $40.79, while the West Texas Intermediate price was up to $38.77 per barrel, a 2.5% rise.

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Professional rubbish removal to help you spring clean your business property

News

Elliot

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11 March 2016

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Professional rubbish removal to help you spring clean your business property

Spring cleaning time for any business is often very tedious. Apart from worrying about the dirt and grime around the business environment and the best ways to clean them, there is often the worry of proper disposal of accumulated rubbish after cleaning. There is equally the worry about the possibility of damage to vital business setups and equipment during the cleaning process. This is why many ecologically friendly and financially savvy business owners rely on professional rubbish removal companies to take care of their spring cleaning. This piece takes a look at the advantages of using professional rubbish removal sydney for your business spring cleaning needs. Here are some ways to spring clean your business practices as well after you have a sparkling clean office.

Reliability

For businesses, spring cleaning is not a chore that can be done without adequate planning. Careful deliberations are part of the cleaning process to ensure that it is started and completed within the most favourable timeframe. With a professional rubbish removal service however, you can be sure of professional handling of your accumulated wastes in line with your schedule. The reliability allows business owners to go about the things that actually matter (bringing in new clients and taking care of old ones) whilst safe in the knowledge that their business property will be cleaned when due.

Proper waste handling

During spring cleaning, there is always the danger of contaminating the environment with old paint, insecticides, unused raw materials and even solid waste such as paper bags and plastic containers. It is crucial that these are disposed of properly to ensure that there is no contamination, which is why we’d recommend you to look around at the cheapest waste disposal options to ensure any waste is disposed of properly. Professional rubbish removal services are well experienced in handling all kinds of waste including highly toxic chemicals and will take care to dispose them in an eco-friendly manner.

“Professional rubbish removal companies are experienced in the sorting and handling of all wastes and in many cases, you can communicate any requirements you may have for any specific types of waste” says the rubbish removal experts at Rubbish Taxi based in London.

This means you can have your waste removed, sorted and sent to a farm of your choice (for organic waste) or a recycling plant of your choice (for inorganic waste).

Cost effectiveness

Professional rubbish removal services are often very cost-efficient because they have the capacity to handle all kinds of waste. You don’t need to pay separately for organic waste removal and inorganic waste removal instead you will only need to pay for the weight of waste generated. This ensures that your spring cleaning process will not be a costly one. Most businesses will embrace any process that will help them cut costs. Working with a professional removal companies is one of such processes.

Improved business image

Many customers will appreciate a clean business environment. However apart from the enjoyment of a dirt free environment, your business image will be enhanced a great deal if customers can see that wastes are handled professionally. This is even more so today when an increasing number of people are becoming aware of their environmental responsibilities. Making your customers see that your business waste is handled in an ecologically friendly manner is a great way to demonstrate participation in a cause that many of them identify with.

Professional rubbish removal companies are therefore a fantastic addition for any business today!

Architect Plans to Build Flat Pack Homes Above Car Parks

Business

Elliot

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11 March 2016

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Architect Plans to Build Flat Pack Homes Above Car Parks

British architect Bill Dunster has revealed an ambitious plan to build as many as 1,000 flat pack houses per year. The houses, which are built in just a week, would sit on top of a self-contained car park as part of a plan to maximise use of space in crowded metropolitan areas.

The houses, which are called Zedpods, would have a net zero carbon output and are designed for use in large cities such as London. Dunster claims that the houses can be assembled in just one week, with costs starting from £35,000 for the smallest units.

Aimed at young professionals eager to purchase property but unable to deal with rising prices across the UK, the houses’ low purchase and running costs are viewed as major selling points, as is their ability to be built in busy commercial areas.

The compact houses are part of a growing trend towards flat pack residential units, which are pre-built and assembled on site. Flat pack houses have become a more popular choice in the last decade as homebuyers face growing prices for existing properties.

The Zedpods are distinguished from other flat pack homes by two key factors: their high-profile design, which prioritises efficient use of space, and their construction on stilts above a car park.

The homes are designed to be constructed over existing parking spaces, allowing for increased efficiency in the usage of space in major cities. Building over existing car parks also reduces the cost of home ownership by avoiding the need to purchase land.

Dunster believes that the homes can be offered for sale at competitive prices, or for rent. He has confirmed that Zedfactory is currently considering sites in London, Bath, Cardiff and Oxford as it moves towards producing the first homes for customers.

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Caffeine price analysis highlights best value for UK coffee drinks

Elliot

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10 March 2016

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Caffeine price analysis highlights best value for UK coffee drinks

An independent price and caffeine comparison study of the UK’s best known coffee brands has revealed Costa as the best choice for coffee drinkers in search of the high street’s biggest caffeine rush.

The cost and caffeine content of a standard 12 fl.oz. cup of Americano coffee was compared by money saving website Voucherbox.co.uk at the UK’s most popular coffee shops, with Costa providing the highest caffeine level overall, at 195mg per serving, and the best price per 100mg of caffeine (£1.00).

At the other end of the scale Caffè Nero coffee contained the lowest caffeine content for a 12 oz. Americano (80mg), which makes it the most expensive outlet in the study for getting a caffeine hit (£2.56 per 100mg of caffeine) – two and half times more expensive than Costa.

Greggs was the second best retailer for cost versus coffee strength, at £1.06 per 100mg coffee, followed by Pret a Manger (£1.30 per 100mg of caffeine) and Starbucks (£1.40 per 100mg of caffeine).

The research also looked into the cost of caffeine if consumed by drinking Coca-Cola, Red Bull and a good old fashioned cup of tea, with Red Bull fairing well in the comparison table and the claim that ‘there’s more caffeine in tea than coffee’ well and truly dismissed.

	Coca-Cola	Tea	Caffè Nero	Red Bull	Pret a Manger	Starbucks	Greggs	Costa
Caffeine (mgs)	31	63	80	109	137	150	161	195
Cost of drink	£0.73	£2.45	£2.05	£1.55	£1.75	£2.10	£1.70	£1.95
Cost per 100 mg caffeine	£2.35	£3.89	*£2.56*	£1.37	£1.30	£1.40	£1.06	*£1.00*

The difference in caffeine levels amongst the main coffee shops relates to factors such as the number and size of espresso shots in each serving, the blend of bean used and the preparation method in each case.

Cost alone may not always be the dictating factor in where the caffeine thirsty consemer heads for their drink, but understanding the varying caffeine levels per brand or drink helps coffee aficionados calculate a healthy intake limit.

The European Food Safety Agency state 400mg as the recommended maximum daily caffeine level. For pregnant women they are advised to keep caffeine intake to a maximum of 200mg per day.

Shane Forster, UK Country Manager for Voucherbox.co.uk commented, “Many of us have a favourite place for our prized cup of coffee, but if it’s a caffeine rush you are looking for it is well worth taking into account the hugely varying levels of coffee strength and considering what you get for your cash at the main coffee shops on the high street. Also, from a health perspective two Americanos at Costa would take the coffee drinker close to the daily caffeine limit, whilst the guidelines permit the thirsty amongst us to indulge in up to five Americanos a day at Caffè Nero, if our budget goes that far!”

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VW US president Horn resigns with immediate effect

News

Elliot

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10 March 2016

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VW US president Horn resigns with immediate effect

The boss of the US division of German car manufacturing giant Volkswagen Michael Horn resigned “effective immediately” on Wednesday, 9^th March, with the company continuing to struggle to deal with the fall out of its emissions cheating scandal.

The news of Horn’s departure comes six months after the scandal was made public, with VW still wrangling with the US government to agree a settlement over damages and fines relating to the matter.

Horn is to be temporarily replaced by Hinrich Woebcken, who recently took over as head of VW for North America. Herbert Diess, CEO of Volkswagen, commented: “I want personally to say ‘thank you’ to Michael Horn for the great work he has done for the brand and with the dealers in the United States. During his time in the US, Horn built up a strong relationship with our national dealer body and showed exemplary leadership during difficult times for the brand.”

Horn, had been VW’s US president and chief exec since 2014. Announcing his immediate departure from the firm after more than 25 years of employment VW stated that Horn’s resignation had arrived by “mutual agreement” and that he would “pursue other opportunities effective immediately”.

Horn has appeared to struggle with VW’s international handling of the emissions crisis. Speaking to US Congress in October, he claimed no prior knowledge of the ‘cheating’ software.

VW have reportedly allocated €6.7bn to deal with the fixing the affected vehicles globally, but the US lawsuit Volkswagen are facing may reach a total of $20bn. Indeed some commentators have even suggested that the total cost of the debacle could set VW back as much as €78bn.

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Shop designs adding to consumer experience to boost retail performance

Elliot

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4 March 2016

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Shop designs adding to consumer experience to boost retail performance

In the past, shop designs were focused on getting in as many products as possible with very little thought given to what the consumers actually wanted. The common theme was a crowded house mentality. All of that has changed today. Consumers are looking for a tidy, uncomplicated yet sophisticated and engaging shopping experience and only shops deigned with this in mind can attract and retain them. How can you achieve a shop design that sells?

Focus on creating space

As mentioned above, the days of crowded shopping are long gone. Consumers want a shop layout that allows them to peruse your offerings comfortably. Very few people will return to your shop if they have to bump into other people or if your shopping space evokes the feeling of congestion. Many people will turn back at the door! To ensure a spacious design, cut down on the number of cabinets and counters and ensure adequate spacing within your shop. Use SlatWall Hooks to hang some merchandise that would ordinarily be in a cabinet. It is however, important to avoid leaving too much space around. It could give off the feeling that your shop is under stocked.

Create relaxing spots around the shop

Customers like to socialise in a relaxing manner at all times. This is why most shoppers today appreciate a shop layout that offers them a space to sit and relax – here are some great designs to check out for a while during the shopping process. If you can find space in your shop layout for some relaxing cushions for your customers, you should embrace it. Alternatively, you can have some chairs just outside your shop. This gives your customers the message that they are always welcome to hang around your shop.

Display your social responsibility goals and achieved targets

Sustainability, ecological friendliness and giving to worthy causes are factors consumers watch out for today when patronising any retail outlet. You should highlight these aspects of your business by devoting a portion of your shop’s layout to displaying awards, achievements, goals etc. Consumers today are often happy to know that their preferred shopping outlet is ecologically friendly or a patron to a worthy cause.

Embrace warm colours

In the past, shop designs featured neutral white lighting, white walls and cool colour tones. Today however, more consumers are showing affinity for warmer tones and brands are now changing in line with them. A warm atmosphere as offered by a warm colour theme has been proven to help consumers feel at home and spend more time in shops.

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Years of quantitative easing and low interest rates may have cost savers ‘£160bn’

Elliot

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3 March 2016

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Years of quantitative easing and low interest rates may have cost savers ‘£160bn’

The post global economic crash era has seen seven years of quantitative easing and record low interest rates, which has potentially cost savers cost savers an estimated £160bn according to financial firm Hargreaves Lansdown.

The Guardian newspaper and additional editorial titles have published Hargreaves Lansdown’s findings, with the huge figures said to have been missed out on by savers somewhat offset by gains in property, stocks and bonds, state the new study.

This Saturday (5th March) will see the seventh anniversary of moment the Bank of England made interest rate cuts to their current historic low. With up to £106bn being held in accounts paying no interest, this economic policy has ‘annihilated’ ROI.

Low interest rates have been put in place by financial institutions and regulators around the globe as economists, bankers and policy makers have looked to reverse the trends of the 2008 financial meltdown. Low interest and quantitative easing help to encourage lending and borrowing and to keep cash flowing in stagnating economies, but the policies have pros and cons.

Laith Khalaf, a senior analyst at Hargreaves Lansdown, said: “Loose monetary policy has supported rises in stock, bond and property prices over the past seven years, while annihilating the returns on cash. Mortgage costs have fallen significantly from pre-crisis levels, but this positive effect is laced with an underlying risk.

Khalaf continued, “If borrowers get too comfortable taking on high levels of debt at low interest rates, they could be in for a nasty shock if and when rates rise.”

The analysts calculate that average mortgage payments have fallen by 31% over the last seven years, meaning homeowners pay an average of £270 a month less on a £200,000 mortgage. Access to lower cost mortgages has boosted the property market, leading to a 32% rise in house prices over the same period.

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