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M S N: Britain Is Simply Just Too Expensive

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http://money.uk.msn.com/MyMoney/Insight/Mo...cumentid=827869

Has Britain become unaffordable?

By Nic Cicutti, MSN Money Special Correspondent

August 23 2006

Earlier this month, millions of homeowners came in for a nasty shock: the Bank of England’s Monetary Policy Committee (MPC) decided to raise base rates by 0.25 percentage points...../

Energy prices

In the past two years, prices have rocketed. All suppliers have tended to follow each other in pushing up costs to consumers, but the most obvious example of this price surge can be seen by looking at British Gas, one of the UK’s largest suppliers....../

Council tax

For several years now, council tax bills have been going up at well above twice the rate of inflation in England....../

Petrol prices

Continuing political instability in the Middle East coupled with a series of natural disasters has meant that the cost of a barrel of oil has more than doubled from about $33 two years ago to about $72 at present......./

Mortgages

This is an interesting one.

On the one hand, interest rates have hovered at historical lows in recent years. They have been at or below 5% since early 2001. Even if rates were to go up another 0.25 percentage points in the near future, they would still be much cheaper than they were in 1990, when they spiked at about 15%.

But the real issue is not so much rates but prices. Back in 1996, a typical mortgage was for about £60,000. Today, that sum is closer to £150,000......../

Food

In an interesting article recently, Brian Durrant, a Cambridge economics graduate and investment director of the Fleet Street Letter, points out that while low food price increases have kept overall headline inflation rates low, this may soon change......../

Higher education costs

With thousands of A-level and Highers students preparing to go to university, one factor that has not yet been considered is the effect of higher tuition fees......./

Inflation again

No wonder the Bank of England’s governor, Mervyn King, warned recently that there was a 50-50 chance of inflation rising above 3% during the next six months

As a result, the MPC may well be forced to raise interest rates again to try to curb inflation. And if that happens, mortgage prices will rise again…

It feels like a merry-go-round, doesn’t it? Hold on to your wallets there is a Scotsman about.

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http://money.uk.msn.com/MyMoney/Insight/Mo...cumentid=827869

Has Britain become unaffordable?

By Nic Cicutti, MSN Money Special Correspondent

August 23 2006

Earlier this month, millions of homeowners came in for a nasty shock: the Bank of England’s Monetary Policy Committee (MPC) decided to raise base rates by 0.25 percentage points...../

Energy prices

In the past two years, prices have rocketed. All suppliers have tended to follow each other in pushing up costs to consumers, but the most obvious example of this price surge can be seen by looking at British Gas, one of the UK’s largest suppliers....../

Council tax

For several years now, council tax bills have been going up at well above twice the rate of inflation in England....../

Petrol prices

Continuing political instability in the Middle East coupled with a series of natural disasters has meant that the cost of a barrel of oil has more than doubled from about $33 two years ago to about $72 at present......./

Mortgages

This is an interesting one.

On the one hand, interest rates have hovered at historical lows in recent years. They have been at or below 5% since early 2001. Even if rates were to go up another 0.25 percentage points in the near future, they would still be much cheaper than they were in 1990, when they spiked at about 15%.

But the real issue is not so much rates but prices. Back in 1996, a typical mortgage was for about £60,000. Today, that sum is closer to £150,000......../

Food

In an interesting article recently, Brian Durrant, a Cambridge economics graduate and investment director of the Fleet Street Letter, points out that while low food price increases have kept overall headline inflation rates low, this may soon change......../

Higher education costs

With thousands of A-level and Highers students preparing to go to university, one factor that has not yet been considered is the effect of higher tuition fees......./

Inflation again

No wonder the Bank of England’s governor, Mervyn King, warned recently that there was a 50-50 chance of inflation rising above 3% during the next six months

As a result, the MPC may well be forced to raise interest rates again to try to curb inflation. And if that happens, mortgage prices will rise again…

It feels like a merry-go-round, doesn’t it? Hold on to your wallets there is a Scotsman about.

To the average person yes, once the upper middle classes start feeling the pinch due to less housing equity etc it will be interesting to see the fallout.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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