UK house prises continue to rise due to a shortage of family homes, the Halifax reports

UK house prises continue to rise due to a shortage of family homes, the Halifax reports

Despite the worst recession since the second world war, the price of the average home in the UK has rocketed by £43,577 since the start of the first lockdown two years ago, the Halifax has said.

The UK’s biggest mortgage lender said the 18.2% rise increased the cost of an average home to £282,753.

Buyers seeking more space saw a 21% rise in the price of detached homes compared with a 11% rise in flat prices over the same period.

Higher mortgage rates will start to reduce buyer affordability and the amount people can borrow, which may dampen prices.

Increased living costs will inevitably affect how much first-time buyers can save, borrow and spend on a property.

As we enter the traditional springtime buyer activity season, estate agents are already reporting continued demand and a shortage of larger family houses, which means sellers can obtained higher prices.

Full article

Funeral plan provider goes bust – what do you now if you have a prepaid plan?

Following the recent utility providers bankruptcies, another inflation-led disaster is brewing in the funeral industry. Safe Hands, a UK ‘prepaid funeral plan’ provider, has collapsed into administration, leaving thousands of customers worried about what to do now, plus many others concerned that other companies will follow suit amid soaring costs and inflation.

Insurance vs Prepaid Funeral Plans

The other way of providing for future funeral costs is the traditional method of taking out insurance which pays out on your death.

I have far more confidence in insurance companies, like Legal and General and Sun Life, that have been around in some cases for over a hundred years than a funeral plan provider.

Insurance companies are heavily regulated and employ actuaries to calculated liabilities years into the future. They also have reserves which can see them through the bad times like world wars, recessions and depressions.

Funerals can easily cost in excess of £5,000 excluding the burial plot.

Safe Hands, Dignity Funerals Limited will provide existing customers with funeral care arrangements until 20 April 2022, and customers should contact the customer services team on 0800 640 9928. There is no confirmed plan in place after 20 April.

Worryingly, six funeral plan providers have not even applied for authorisation

See the FCA website to find a published list detailing which firms have yet to apply for authorisation, as well as those who are transferring their books to other providers.

There are six companies who have not yet applied for authorisation are:

If your provider does not get authorised by the FCA you have no protection from the FSCS should your funeral plan provider go into administration before 29 July, or if it has its FCA application refused.

In the meantime, customers will have greater protection when taking out a prepaid funeral plan on or after 29 July this year.

Other Financial News

NI tax rises kick in, most employers and employees will pay an extra 1.25p in the pound, but lower paid will pay less due to recent threshold changes in Rishi Sunak’s budget.

Economic winter

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