Homeowners could have problems selling or remortgaging their property in the future because they have overestimated its value, new research from Abbey suggests.

Many Britons are estimating the value of their home at over £35,000 more than it is actually worth, making it extremely difficult to sell or remortgage the house at a later date.

According to a new study by Abbey, the average price of a home as valued by UK homeowners is £190,175. However, this is £37,280 too high when compared with Land Registry figures, which estimate the average cost of a UK home as being £152,895.

“Homeowners looking to remortgage or sell their homes in the near future need to make sure that the value of their home is accurate and has been valued by professionals to avoid problems or disappointment further down the line,” warned Nici Audhlam-Gardiner, director of mortgages at Abbey.

(more…)

Young people are significantly more pessimistic about the state of Britain’s finances than their parents’ generation, Post Office figures reveal.

According to a report published today by Post Office Financial Services, almost one in four 18-24 year olds in Britain believe that living standards will take over a decade to return to pre-recession levels. A further 34% of people in this age group believe that the UK will not experience economic recovery for another five years. The survey found that the younger generation is more pessimistic about Britain’s economic outlook than any other age group.

In comparison, only 5% of 45-54 year olds believe that the recession would go on longer than a decade, possibly because that generation has already lived through a recession and seen Britain’s economy grow since.

(more…)

Some letting agencies in England and Wales are imposing “unjustified and excessive” charges on tenants, says a charity.

A report by Citizens Advice shows that charges levied for services such as administration fees and reference checks could add an extra £600 to the cost of renting a home. Often these charges bear no relationship to the cost of the actual services, the charity claimed.

In the light of the new figures Citizen’s Advice says that it wants new regulations to ensure that landlords and letting agencies to not charge tenants fees additional to their rent. It said that many of these costs were charged for services included in the “routine business” of letting and managing a property.

(more…)

Britain is a long way off from becoming a cashless society, according to the payments association Apacs, and may always use cash as a form of payment.

Recent figures from Apacs show that spending on credit and debit cards has increased, and now outstrips spending with cash. Moreover, the association expects the use of debit cards alone to outstrip cash in the next few years.

However, Sandra Quinn, director of communications at Apacs, says that cash still has its uses and customers are unlikely to drop it altogether.

“People feel comfortable with cash and will continue to use cash,” she said. “It’s a very good way of knowing exactly how much money you have and haven’t got.”

(more…)

The disappearance of Madeleine McCann from an Algarve holiday resort in 2007 is still having an adverse effect on Portugal’s tourism industry, according to tour operator Thomas Cook.

The company, which is the second largest tour operator in Europe after the German-owned TUI, revealed yesterday that bookings for package holidays to Portugal this summer are down 30% on last year. Thomas Cook has also seen a 20% drop in holiday bookings to Spain and a 35% decrease in Italian holidays.

Whilst holiday bookings for the company have decreased in destinations across Europe thanks to the weakness of the pound against the Euro as well as increasing unemployment in Britain, the disappearance of the then three-year-old Madeleine from the Ocean Club in Praia da Luz in May 2007 is still an important factor for families deciding on a destination.

(more…)

Up to 4.8 million UK drivers would be prepared to switch from four wheels to two during the recession, according to a new survey by the Post Office.

The majority of these cited reduced costs as a reason for ditching their car in favour of a moped or motorcycle, with 31% of drivers attracted by fuel efficiency. A further 27% of drivers believe that riding on two wheels is an easier way of getting around.

Whilst UK car sales are in stark decline during the recession, registrations of motorbikes and mopeds are increasing year-on-year, with a 24% increase in these types of vehicles on the road this spring. This trend is hardly surprising when you consider the benefits of riding a motorised two-wheel vehicle. As well as halving their fuel consumption in miles per gallon on a moped or lightweight motorcycle, motorists can benefit from road tax starting from just £15 a year, free parking in the majority of British towns and cities, no congestion charges and lower insurance premiums.

(more…)

Asking prices for homes in England and Wales jumped by a surprise 2.4% in May, according to the property website Rightmove.

The group said that the average asking price for a house rose to £227,441 in May, up from £222,077 in April - the largest April to May jump in six years.

However, as well as indicating fresh optimism in the market among some buyers, the jump also indicates the scarcity of property coming onto the market.

“Sellers may be pricing at this level because they fear that their equity could be eroded to danger levels where they can’t find an affordable mortgage deal on their new purchase, due to lenders’ stricter loan-to-value ratios,” the group said.

(more…)

Today sees the launch of the government’s “cash-for-bangers” car scrappage scheme, which allows owners of a car or van over 10 years old to receive £2,000 off the price of a brand new vehicle when they trade in their old one. It is hoped that the scheme will breathe new life into Britain’s ailing motor industry.

So far 38 manufacturers have signed up to the voluntary scheme, which is being jointly funded by the government and manufacturers. The scheme will last until the end of February 2010, or until the government’s £300 million in funding runs out.

Under the scheme, those who scrap their old car will receive £1000 from the government to put towards the cost of a new vehicle, as well as a similar discount from the manufacturer. Similar tactics have been tried in other European countries, including Germany, where sales of new cars have increased by 40% since the scrappage scheme was introduced.

(more…)

Holidaymakers who purchase travel insurance from a high-street travel agent could pay up to six times more than those who take out a policy online.

As more people look to snap up last-minute holiday deals this summer, consumers are warned not to accept travel insurance offered by a travel agent in a rush without having shopped around first.

Statistics from the Association of British Travel Agents reveal that 40% of travel insurance policies were bought through agents last year, suggesting that many consumers do not spend time shopping around before opting for a policy.

(more…)

The number of UK homes repossessed in the first quarter of this year rose to 12,800 according to figures from the Council of Mortgage lenders.

This represents a 23% rise in repossessions on the previous quarter, and a 50% rise on the 8,500 homes repossessed during the same period last year.

However, despite the massive jump, the CML has admitted that its earlier forecast of 75,000 repossessions in 2009 was ‘pessimistic’, and it expects to issue a lower prediction towards the summer. A total of 40,000 homes were repossessed during 2008.

There was also a sharp rise in the number of people who have fallen behind on mortgage repayments. The number of home loans with arrears of more than 2.5% of the mortgage balance rose by 12% from 182,600 in the fourth quarter of 2008 to 205,300 in the first three months of this year. This was an increase of 62% on the 127,000 in the first three months of last year.

(more…)