Private rentals more expensive than ever

Rents in England and Wales are now more expensive than ever after they reached the milestone of £ 757 per month of September-a level that is "devastating" for tenants, according to housing charity Shelter.

The figure for September-1.8% on August and an increase of 2.1% per year-is £ 13 per month more than the previous record high set in October 2012, according to LSL services index of buy-to-let.

The number of new leases increased by 6.5% in September compared with August and 9.2% compared to September 2012.

Rents went to nine out of 10 regions between August and September, with the fastest recorded rate in the Southeast, where rents have increased by 3.3%.

The Northwest experienced an increase of 2.7% monthly, followed by West Midlands at 2.6%. The only region where rents have fallen was the East of England, where there was a decrease of 0.8%.

Every year, the region was the only one to experience a fall in lease-up 1.4 percent from September last year.

However, rents in Wales, West Midlands, East Midlands, North West, Yorkshire and the Humber, London and the South East are now at unprecedented levels. Only the North East, East of England and Southwest have never seen above them.

David Brown, sales manager of LSL Property Services, said: "a new peak tenant demand drove rents to new heights, well above previous records. The highest rents in nearly every region show that, despite the Government systems, buying a first home is still an aspiration. This is not only to increase low pay, but also a general supply shortage-that is the underlying reason why the houses are always more expensive.

However, Roger Harding, a spokeswoman for the charity Shelter, said: "this is a devastating news for tenants of 9 million. As more and more people are priced out of home ownership and waiting lists grow longer, too many families are left trapped in unstable and expensive rental market.
"Every day refuge hear from people who are having to cut essentials are struggling to pay rent each month. With wages flat-lining, the fact that rents reached record levels mean that even more people will find it harder and harder to make ends meet. "

Meanwhile, gross yields on a typical rental properties rose to 5.4 percent in September, from 5.3% in August-taking the annual total returns to 7.4% in September, compared to 6.1% a month earlier. In absolute terms this equates to an average return for £ 12,129 owners, with rental income of £ 8,164 and capital gain of £ 3,965.

LSL said that if Property Rental prices continue to rise at the same pace they have in the past three months, the average investor buy-to-let in England and Wales could expect to make a return of 13.6% total annual next year-or £ 23,028 each property.

The catch-all term applied to investors who purchase the property with the sole intention of let to tenants, rather than living in themselves, with income from let usually used for repayment of the loan. Buy-to-let investors have to take specialized loans that carry higher interest rates and require a much larger store than a standard mortgage. Other expenses may include legal fees, income tax (on profits you hire), tax capital gains (if it sells the property) and "void" periods when the property is unlet.

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Ofcom to improve TV subtitles

Communications regulator OFCOM is to begin monitoring the quality of TV subtitles from next year, to help improve the service for spectators deaf and hard-of-hearing.

Following a consultation in subtitling, launched in may 2013, Ofcom is to force broadcasters to measure their quality of subtitling on live television every six months for two years. The objective is to publish the data and "encourage" broadcasters to address any issues where the quality can be improved.

More than 1 million people with hearing problems use subtitles to watch TV. However, in a recent study that Ofcom has found that 7.6 million people have used subtitles TV – many people without hearing loss subtitling to add clarity to use TV.

In its consultation, Ofcom has found that pre-prepared subtitling is generally of good quality, "but viewers claim that" there are continuing problems with speed, accuracy, and presentation of live subtitles ".

With direct programming, subtitles are delayed a few seconds and are subject to errors as furiously attempting to screen subtitling subtitlers transmitting what is happening in the program. Ofcom said live subtitles even scroll across the screen, rather than appear as blocks of text, which says it is more challenging for viewers.

The regulator is therefore encouraging issuers to use multiple block subtitles and consider whether, in programs that are not time-sensitive, broadcasters could introduce delays in the transmission to make it easier to insert subtitles of better quality.

Claudio Pollack, Director of Ofcom's consumer group, said: "we are making important steps towards improving the quality of subtitling live programs for viewers deaf and hard-of-hearing.

"Ofcom provides regular reporting by broadcasters to help improve the subtitles from time to time, as well as allowing us to identify exactly which areas need more progress."

About 70 channels are required by Ofcom to provide subtitles. If broadcasters attract a share of more than 0.05% you must provide subtitles, provided they can meet the estimated cost to pay no more than 1% of their turnover.

The quantity of subtitling is increased by 10% on most channels at 80% or more in 2013.

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British Gas hikes prices by more than 10%

British Gas (BG) is to raise prices by an average 9.2%-three times the rate of inflation-insulting further misery on cash-strapped families.

The increases, including an increase of 8.4% for gas and 10.4% for electricity, will affect 7.8 million customers and introduced on 23 November. Annual dual fuel Bill of the average customer will increase by £ £107 to 1,297.

The Government expressed its disappointment at the announcement and said the figures used by British Gas to justify its price increases "doesn't add up".

Ian Peters, CEO of British Gas residential energy, said: "we have not taken this decision lightly, but what is pushing energy prices at the moment are costs that are not directly under our control, such as global energy prices, taxes that we have to pay to use the national network that supplies energy to the home and the cost of social and environmental programmes of the Government.

But the Government's Energy Secretary, Edward Davey, accused BG of not being transparent, when calculating the price increase. He said: "this is very disappointing news for customers of British Gas and the company must justify this decision openly and transparently.

"I recently wrote to energy companies, asking them to publish their costs of delivering the energy company obligation (ECO). Today's announcement shows why this is necessary, because only numbers of British Gas ECO is doesn't add up when you look at what other energy companies, saying their costs. "

BG is the second energy supplier to raise prices after the announcement of SSE on October 10 that customers will pay $ 8.2% more for their gas and electricity by 15 November.

Compare prices of energy and switch to ISP

Energy experts reacted with dismay to the announcement-and warned that further rises may come from the remaining six big energy groups.

Clare Francis of Moneysupermarket.com said: "it was only a matter of time before British Gas inflicted the blow to its customers and has announced price increases. Largest energy company in the United Kingdom had warned that prices would have to rise, but the novelty will be a bitter pill for them to swallow.

"And will not stop there. We can expect another four main suppliers-EDF, e.on, npower and Scottish Power-even announce prices hikes in the coming weeks. "

An increase in the general price level that persists over a period of time. The inflation rate is a measure of the average change over a period, usually 12 months. If inflation is 4 percent, this means that the price of goods and services is 4% higher than a year earlier, requiring extra 4% and spend to buy the same things that we bought 12 months ago and that any savings and investments need to generate 4% (after taxes) to keep pace with inflation. Since 2003, the Bank of England has used the consumer price index (CPI) as its official measure of inflation (see also retail price index).

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The Treasury Department plans to Cap Isa savings?

The Treasury might consider capping the amount that can be held in ISAS, according to the Telegraph newspaper reports.

The Government says it is looking into tax efficient savings vehicles popular amid concerns about a growing number of ' Isa ' millionaires.

The amount that can be saved in an Isa grew by £ 7,000 a year when they were launched in 1999 to £ 11,520 in the current fiscal year.

While the best someone who had made full use of the deduction every year since 1999 could have put in ISA is around £ 130,000, the Telegraph says wise investment decisions and the effects of compounding could mean that some vessels are now worth more than £ 1 million.
While the number of people with pots amounting to much is thought to be very small, that with pots in the region of £ 100,000 2%-account or tens of thousands-of Isa savers, according to the newspaper.

While the Treasury has denied that it is planning to introduce a CAP, some pensions experts are already cringe at the thought of such an intervention.

Find the best cash Isa account or savings for you

Patrick Connolly, a financial planner at Chase de Vere, said Moneywise: "it is well known that as a nation we are not saving enough to provide adequately for ourselves. The general population has a wide distrust of pensions, largely due to the constant meddling and changing rule of politicians.

"While people did not trust the pensions trust Isas and so unfathomable that the Government wants to change something that continues to gain momentum and clearly is working on it."
He added: "while £ 100,000 sounds like a plug aspirational for many people this is not necessarily the case, especially for those who make a habit of saving early. A Fund of £ 100,000 Isa would provide an annual income of less than £ 100 every week and I also remember that many people are using ISA as a means to pay interest only mortgages that could be considerably greater than £ 100,000. "
Andrew Hagger of MoneyComms.co.uk has also expressed its concern for savers. "I think that would be another blow to an already struggling economy. The £ 100,000 limit will affect only a minority of investors but it's a slippery slope once the Government starts tinkering with the limits and allowances ".

Connolly added: "We hope that these will prove to be little more than scare stories. If not then the future financial perspective for those in the United Kingdom, which is already quite about it, could get a whole lot worse. "The Treasury plan to Cap Isa savings?

Invidivual savings accounts were introduced in the April 6, 1999 to replace personal equity plans (PEP) and special savings accounts tax-exempt (TESSAs) with a plan that covered both the stock market and savings products, where yields are tax-free. The ISA is not an investment product. Rather, it is a "wrapper" tax-free when you put, investments and savings up to a specified annual allowances where the yields (growth of capital, dividends, interest) are tax-free (you don't need to declare ISAS and their contents on your tax return). However, any dividends are taxed within the investment, and that cannot be recovered.

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Neil Woodford leaving Invesco Perpetual

Star fund manager Neil Woodford is leaving Invesco Perpetual in April 2014 after 25 years, a move which causes concern for thousands of investors in income trusts.

Private investors have ploughed billions into Woodford after funds reached market-beating returns. Invesco Perpetual high income, for example, has invested £13,9 billion in it, while the income fund is worth £10,6 billion.

The high income fund returned an average of 12.2% per year over the last 10 years (at the end of September 2013), while the income fund has returned the 12% per year, according to Morningstar.

Mark Barnett, head of Directorate-UK Strategic Income Fund, is the man chosen for the role of Woodford. He will replace Woodford as head of UK equities and take control of several funds from Woodford including: Invesco Perpetual high income and Invesco Perpetual income fundsand Invesco Perpetual Fund UK Equity Pension.

Delivery to Barnett will occur during a transitional period of six months prior to the departure of Woodford.

But Ciaran Mallon, current manager of income growth fund &, has already begun to manage UK equity elements of Woodford Invesco Perpetual monthly income Plus and Invesco Perpetual distribution fund.

In a statement, Invesco Perpetual said: "both [Barnett and Mallon] are expert and fund managers with experience that have the same active investment approach, based on the assessment and focus in the long term as Neil. The team will continue to strive to offer good long-term returns for investors ".

Mark Armour, chief executive of Invesco Perpetual, added: "they designed for succession for many years and have built a world-class culture of investments that develops and supports experienced managers and talent".

Woodford said: "leave the company on good terms and remain fully committed to my responsibilities at the Fund Manager Invesco perpetual until my departure.

"My decision to leave is a personal based on my views about where I see long-term opportunities in the Fund management sector. My intention is to establish a new fund management assets serving institutional and retail customers as soon as possible after the April 29, 2014 ".

Independent financial advisers urged investors not to panic. Patrick Connolly of Chase de Vere, said: "this is terrible news for Invesco perpetual and will be cause for concern for many investors who are confident their investments and pensions with Neil Woodford.

"It will be impossible for Invesco Perpetual Woodford replaced with someone of similar stature because, especially in the world of UK equity income funds, there is nobody like calibre. However, there is no reason for investors to panic. Woodford is still running investment funds the same today as it did yesterday and this will continue until next April.

"We recommend investors to invest money not new funds of Woodford. Those with existing companies should review how they currently with Woodford and if necessary trying to diversify into other funds. Suggested alternatives include Artemis income, Threadneedle UK Equity income and Rathbone income. "

Darius McDermott of Chelsea financial services added: "if as is rumored, by Neil intends to launch a new asset management activity, imagine will generate an incredible amount of interest – not to mention activities – from launch. However, I doubt very much that he will be able to take £ 33bn, so investors are facing a tough choice.
"No single alternative Fund will be able to deal with the switches that probably will come from this ad, then I suggest you some! Artemis income, income Rathbone and Threadneedle UK Equity Alpha income. "

A catch-all phrase that can range from assessing the price of a property or vehicle before it offers for sale or the net value of its assets in an investment portfolio for stock prices on the stock exchange.

An individual employed by an institution for the management of investment funds (unit trusts, investment trusts, pension fund or hedge funds) to meet pre-determined goals (usually to generate capital growth or maximizing income) prescribed geographic areas or sectors of investment (e.g. the United Kingdom more small businesses, technology or raw materials). The handler also carries responsibility for general supervision of the Fund, as well as daily trading activity monitoring and developing investment strategies to manage the risk profile of the Fund.

An interchangeable term for shares (UK) or (US) stocks. Holders of capital shares in a company are entitled to earnings and activities of a company after all Prior charges and capital requirements of the company (mainly his debts and liabilities) have been counted. Get equity in any business is to own a piece of it, so the holders of shares of a corporation actually own a piece proportional to the number of shares that they hold. (See also actions).

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Bank loans to households on the rise

Bank loans to individuals increased by £2,9 billion during the three months to August 2013, according to the Bank of England (BoE).

Borrowing increased at a faster rate during the quarter than it did in the first six months of the year, largely as a result of higher mortgage loans.

NET mortgage lending also rose during the quarter, with mortgage approvals for house purchases to their highest level in three months leading up to February 2008.

Meanwhile, the Council of Mortgage Lenders (CML) said gross mortgage lending in September was an estimated £16,2 billion, 41 percent higher than September of last year (£ 11.5 billion).

It also said mortgage loan for the third quarter of 2013 was an estimated £49,3 billion, the highest amount since the third quarter of 2008.

The first part of the Guide on a Buy -equity loan in England and Scotland – and the financing for the loan of the regime are believed to be behind the rise. Families also find it easier to gain access to unsecured credit during the three months to August 2013; While effective interest rates on new personal loans fell.

Paul Hunt, CEO of Phoebus Software, said: "there has been a substantial jump of mortgages over the past nine months. It's great to see so many new signs of life in the real estate market that has been static for a bit.

Find the best mortgage for you

"While the economy continues to grow, the whole market is gaining strength and lending should continue to rise. We have started to see impressive on month increases in mortgages and high loan-to-value loan is 60% higher than last year. Mortgage rates are set to remain low for the next three years. Clearly, conditions have eased for borrowers. "

However, the Bank of England reported a fall in lending to businesses by £ 2.3 billion in the three months to August.

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Annuity rates to a maximum of two years

Annuity rates are now at a maximum of two years, having improved 12% since January and 6% in the third quarter of the year, according to MGM advantage annuities index.

The 6% quarterly increase was the largest of its kind since the index launched in August 2009.

It means the average income today would pay 11% more in income compared to the equivalent available a year ago, or £ 6,111 in additional income over the course of someone's retirement (based on a pot of £ 50,000 purchased by someone aged 65).

The difference between the higher rate best and worst standard annuity annuity is about 38%, "meaning many people with medical conditions or lifestyle might be missing out on thousands of pounds of income," according to MGM.

While up to 70% of people upon retirement may qualify for a better rate because of a health condition or lifestyle, MGM has found that only 6% of consumers who bought an annuity in the second quarter of the year, without the Council bought a higher pension. This compares to 45% when advice is provided or people who bought.

Aston Goodey's at the company said: "annuity rates had a very bumpy path, but we have seen a steady improvement this year with rates hitting a two-year high, largely driven by the returns available on bonds and gilts. This is great news for people looking to build a retirement income, even though it always pays to shop around for the right shape not only of income, but also the highest rate.

Find the best annuity rate for conditions

However, he added: "the increases we've seen this year must be viewed against the 2012 record minimum and the general trend of a decline in rates. The pressure on rates continue to cause SolvencyII, improve longevity and low yields on gilts and bonds, which will dampen job growth down a recovery of short-term rates ".

The colloquial name given to securities issued by the British Government and published to raise funds to fill the gap between what the Government spends and what it receives in revenue. In 1997, the entire stock of outstanding gilts was £ 275bn; from October 2010 it had passed £ 1, 000bn. Gilts are issued throughout the year the Office of debt management and are essentially the investment bonds backed by HM Treasury and customs & considered a very safe investment because the British Government has never defaulted on its debt, and this is reflected in the rating AAA United Kingdom for his debt. Gilts work similarly to the bonds and are another variation of fixed-income securities.

In Exchange for any lump sum – usually the pension fund – an annuity is "bought" by an insurance company and provides an income for life. When you die, income stops. Annuity rates vary and depend on your daily sex (although by December 21, 2012 insurers won't be able to use sex as a factor in the calculation of annuities), age, health and a number of other factors, so you have to choose the right one and, once bought, its terms cannot be altered, and then seek financial advice.

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