Finance Matters

Posts Tagged ‘Government’

The Confederation of British Industry (CBI) is calling on the Government to launch new initiatives to boost the ailing housing market, suggesting it could help economic growth.

The business lobby group wants Chancellor George Osborne to launch the fresh initiatives in his autumn statement, which will be delivered later this year.

In a speech to the CBI North-East Annual Dinner last night, John Cridland, director-general of the CBI, said: “Without a steady stream of eager first-time buyers the housing market stagnates and our whole economy suffers.”

Mr Cridland added: “A way of helping first-time buyers to access finance to get on the property ladder could be to allow them to access locked savings in their personal pension pots through a loan-back scheme.

“Members of company schemes could borrow money from their own pension pot at a low cost, paying the loan back through their salary at any time during their working life.”

Mr Cridland is calling on the Government to consider introducing a new Mortgage Indemnity Guarantee (MIG) scheme and more shared ownership schemes, in order for many to get onto the property ladder.

Cridland says: “Now is the time to stop the stagnation and get the housing market flowing again. The CBI wants to see a revitalised MIG, to reduce the risk of higher LTV mortgages.”

The UK housing market remains under pressure due to a lack of demand, unaffordability and a lack of mortgage products.

Mortgage approvals are picking up but are well below levels seen prior to the financial crisis.

First-time buyers have to put down an average deposit of 20% in order to secure a mortgage, according to the latest figures from the Council of Mortgage Lenders (CML).

The CML also said with house prices edging higher for the year to date, the average new mortgage has gone back up to £120,000, meaning affordability remains a major issue for first-time buyers and home-ownership becomes out of reach for many.

The CBI believes by boosting activity in the housing market, it could be a “game-changer” for economic growth.

Last month, the business group predicted the UK economy will grow by 1.3% this year, down from its previous forecast of 1.7%, made in May.

The Confederation of British Industry (CBI) is calling on the Government to launch new initiatives to boost the ailing housing market, suggesting it could help economic growth.

The business lobby group wants Chancellor George Osborne to launch the fresh initiatives in his autumn statement, which will be delivered later this year.

In a speech to the CBI North-East Annual Dinner last night, John Cridland, director-general of the CBI, said: “Without a steady stream of eager first-time buyers the housing market stagnates and our whole economy suffers.”

Mr Cridland added: “A way of helping first-time buyers to access finance to get on the property ladder could be to allow them to access locked savings in their personal pension pots through a loan-back scheme.

“Members of company schemes could borrow money from their own pension pot at a low cost, paying the loan back through their salary at any time during their working life.”

Mr Cridland is calling on the Government to consider introducing a new Mortgage Indemnity Guarantee (MIG) scheme and more shared ownership schemes, in order for many to get onto the property ladder.

Cridland says: “Now is the time to stop the stagnation and get the housing market flowing again. The CBI wants to see a revitalised MIG, to reduce the risk of higher LTV mortgages.”

The UK housing market remains under pressure due to a lack of demand, unaffordability and a lack of mortgage products.

Mortgage approvals are picking up but are well below levels seen prior to the financial crisis.

First-time buyers have to put down an average deposit of 20% in order to secure a mortgage, according to the latest figures from the Council of Mortgage Lenders (CML).

The CML also said with house prices edging higher for the year to date, the average new mortgage has gone back up to £120,000, meaning affordability remains a major issue for first-time buyers and home-ownership becomes out of reach for many.

The CBI believes by boosting activity in the housing market, it could be a “game-changer” for economic growth.

Last month, the business group predicted the UK economy will grow by 1.3% this year, down from its previous forecast of 1.7%, made in May.

The Confederation of British Industry (CBI) is calling on the Government to launch new initiatives to boost the ailing housing market, suggesting it could help economic growth.

The business lobby group wants Chancellor George Osborne to launch the fresh initiatives in his autumn statement, which will be delivered later this year.

In a speech to the CBI North-East Annual Dinner last night, John Cridland, director-general of the CBI, said: “Without a steady stream of eager first-time buyers the housing market stagnates and our whole economy suffers.”

Mr Cridland added: “A way of helping first-time buyers to access finance to get on the property ladder could be to allow them to access locked savings in their personal pension pots through a loan-back scheme.

“Members of company schemes could borrow money from their own pension pot at a low cost, paying the loan back through their salary at any time during their working life.”

Mr Cridland is calling on the Government to consider introducing a new Mortgage Indemnity Guarantee (MIG) scheme and more shared ownership schemes, in order for many to get onto the property ladder.

Cridland says: “Now is the time to stop the stagnation and get the housing market flowing again. The CBI wants to see a revitalised MIG, to reduce the risk of higher LTV mortgages.”

The UK housing market remains under pressure due to a lack of demand, unaffordability and a lack of mortgage products.

Mortgage approvals are picking up but are well below levels seen prior to the financial crisis.

First-time buyers have to put down an average deposit of 20% in order to secure a mortgage, according to the latest figures from the Council of Mortgage Lenders (CML).

The CML also said with house prices edging higher for the year to date, the average new mortgage has gone back up to £120,000, meaning affordability remains a major issue for first-time buyers and home-ownership becomes out of reach for many.

The CBI believes by boosting activity in the housing market, it could be a “game-changer” for economic growth.

Last month, the business group predicted the UK economy will grow by 1.3% this year, down from its previous forecast of 1.7%, made in May.

Japan’s industrial output recovered further last month after a record drop in March due to the earthquake and tsunami.

Disruptions caused by the twin disasters resulted in carmakers being forced to halt production as a result of parts shortages.

However, it looks as if the situation continues to improve after output rose by 0.8% last month compared with July, figures from the Finance Ministry showed today.

August represented the fifth consecutive monthly increase but was lower than analysts had expected.

However, the outlook remains uncertain as the yen continues to strengthen, and threatens the recovery of the world’s third largest economy.

A strong yen makes Japanese exports more expensive to overseas buyers.

The currency has been appreciating for some time as global investors see it as a safe haven at a time of economic uncertainty.

However, it has implications and it is forcing manufacturers to consider relocating and some have even suggested moving their operations overseas.

The Government announced it will continue to monitor foreign exchange traders’ positions in order to deter currency speculation – which is the latest intervention by the Government as it seeks to weaken the currency.

In related news this week, Japan’s retail sales slumped last month, which has led many analysts to question the strength of the recovery.

Retail sales fell 2.7% in August on an annual basis – much worse than the 0.6% expected by analysts.

In other news, Japan’s core consumer price index (CPI) rose 0.2% in August on an annual basis, and was up 0.1% compared with July, official data showed today.

Analysts had been expecting an annual rise of 0.1%.

In the meantime, the country’s unemployment rate fell to 4.3% from July’s 4.7% – forecasts were for the rate to remain unchanged.

In comparison, unemployment in the US stands at 9.1%, the UK’s rate is 7.9%, while in the euro zone, it is 10%.

Inflation in the world’s second largest economy eased last month after reaching a 3-year high in July.

According to the National Statistics Bureau, consumer prices rose by 6.2% in August on an annual basis, compared with 6.5% the previous month.

Several other economies throughout the world are battling with higher inflation, particularly in Asia, which are the result of soaring food costs.

A report published yesterday showed global food prices are hovering near an all-time high, according to the UN Food and Agriculture Organization (FAO).

The index hit a level of 231 points in August – a rise of more than a quarter compared with the same period a year ago.

Back in February, the index hit an all-time high of 238 points.

China’s Government has made several attempts to contain prices and it has previously said it will make reining in prices its top priority.

The People’s Bank of China has hiked interest rates several times in the last twelve months in a bid to tame inflation – measures which several other Asian countries have adopted.

Analysts now believe inflation has reached its peak and will fall back during the remainder of the year as policy measures take effect.

Inflation fears are always a concern to Chinese officials due to the potential for price rises to trigger civil unrest.

However, despite the fall in consumer prices, analysts still believe the Government needs to do more to contain rising prices.

According to one economist, the fall in inflation was attributed to a moderation in pork price rises.

However, the news lifted Asian markets with Hong Kong’s Hang Seng Index adding 0.2%, while the Australian ASX Index was 0.2% higher.

However, Japan’s Nikkei Index lost 0.3% after date revealed the economy performed worse than originally thought in the second quarter.

In the meantime, separate figures released today show Chinese industrial output rose 13.5% in August on an annual basis, albeit slower than July.