Looking for light in the economic gloom

Tag : Household Light

Declining house prices mean that other, previously profitableimprovements – such as extensions – are now expected toresult in negative "net value added" of between minus £13,806and minus £20,232.
Not that everyone is down in the dumps – there are still somewho are trying to convince themselves that everything is fine.
One mortgage broker I caught up with last week insisted that theproperty market won’t come off by more than 20 per cent. Thefact that my flat has been put on the market at 20 per cent belowwhat I would have got 18 months ago doesn’t alter hisopinion.
For me the housing crash is a reality, not a prediction. But Idigress; let’s get back to being positive – or at leasttrying to be.
Well, I suppose we could invest in a pizza chain as it would appearthat tens of thousands of families are spending their nights infront of the telly with a deep-pan Hawaiian instead of dining out.Domino’s said last week that pre-tax profit had risen by 33per cent to almost £11m.
Or perhaps you could invest in bike shops. Higher car taxes,soaring petrol costs and an urge to be kinder to the environmenthave seen people ditch four wheels for two. Halfords, for instance,said profits were ahead of expectations – and few retailerscan say the same at this juncture.
I ought to remind those with plenty of cash under their mattressesthat banks and building societies are still desperate for yourmoney because the financial crisis has put a strain on theirbalance sheets. As a result, savings rates are at highs not seenfor almost seven years. A one-year fixed-rate bond from the PostOffice, for instance, is paying 7.05 per cent gross.
And if you don’t want to take up pedal power, now is also agreat time to buy used cars. A one-year-old Range Rover Sport 4.2would have cost around £46,000 a year ago – today onewould cost nearer £42,000. A 12-month-old Mercedes-Benz E220is £2,000 cheaper and a VW Golf 1.9 a grand cheaper.
Need a new three-piece suite? Now’s as good a time as any toreplace it. The price of furniture really starts to come down whenthe housing market is on its knees – Laura Ashley, Habitatand Heal’s (sale ends today!) are just three stores offeringup to 70 per cent off.
The tide continues to turn in the mortgage market. Ten days agoHalifax and Nationwide reduced rates and more cuts have followed– including Halifax again, which has cut 16 rates, reducingby up to 0.3 percentage points. Bank of Scotland has cut 29 ratesby up to 0.45 of a point. A Bristol & West customer with a£150,000 mortgage could be £87 better off each monthafter its cut of 0.7 percentage points.
Finally, oil prices have fallen a little, triggering a forecourtwar between the big supermarkets with petrol down by 5p a litre,which is a start at least. The problem I have is that while I sithere tapping away at my keyboard, another energy-hike press releasehas landed.
Dreaming up reasons to be cheerful often feels as though you areclutching at straws, but it may give one or two of you some reasonto raise a smile.
Don’t mix bollards and bikes
Perhaps Halfords will be getting a visit from the leader of theOpposition on the hunt for a new bike.
Poor old David Cameron had his six-year-old mountain bike stolenlast week when he popped into a shop near his west London home.
He chained it to a two-foot-high bollard, but the culprits simplylifted the bicycle and its lock over the bollard and made a fastgetaway.
Whether Cameron had his bike covered under his household insuranceis not known – but even if he had, he is unlikely to find anally in his insurer.
With 110,000 bikes reported stolen in England and Wales every year,you might want to think carefully about where and how you lockyours.
Norwich Union, Britain’s biggest insurer, said it would notpay out if a bicycle were locked to a bollard as it would not beconsidered "secure".
Give us a U-turn on means testing
The Association of British Insurers has published a report urgingthe Chancellor to promote saving and stability.
I could wax lyrical about insurers putting the kibosh onstakeholder pensions, but in fairness the report does raise theissue of means testing.
In short, the means-testing system is a barrier to people wantingto save, because they realise they may not be any better off thanif they claim benefits.
It also deters those planning for long-term care. If they have noassets, the state will pay. If they have assets, savings or eventheir home, this will have to be used to reimburse the state.
The Government has made many a U-turn – one on means testingwouldn’t go amiss.