Bonus harian di Keluaran SGP 2020 – 2021.
The UK house price data released today showed the second steepest monthly decline in house prices since 1968, of 3.7%, knocking around £10,000 off the value of the average home.
Tom Bill, head of UK residential research at Knight Frank, says:
Like a bad Hollywood blockbuster, the UK housing market looks like it will have a predictable finale this year after an explosive start. Demand remains robust and the economic backdrop increasingly has a feel-good factor as Covid disappears into the rear-view mirror.
The key question is by how much supply picks up as autumn approaches. We expect seasonality and needs-driven buyers to play an important role in driving supply higher, which should start to curb house price growth. The monthly decline in July was the largest since 1992 and the second steepest since 1968 and we therefore expect annual growth to end the year in single digits.
On the stock markets, the FTSE 100 index has turned positive and is trading nearly 10 points higher at 7,043, a gain of 0.1%. The other main European indices are in the red, though –
- Germany’s Dax down 0.19% at 15,693
- France’s CAC 40 down 0.57% at 6,614
- Italy’s FTSE MiB down 0.49% at 25,898
The latest official UK house price figures are out. The average price of a property fell by around £10,000, or 3.7%, to £255,535 in July, and the annual growth rate fell to 8% from 13.1% in June, as the stamp duty holiday was phased out.
The main findings are:
- The average UK house price is £19,000 higher than this time last year, following the record high of £265,000 in June 2021.
- Average house prices increased over the year in England to £271,000 (7%), in Wales to £188,000 (11.6%), in Scotland to £177,000 (14.6%) and in Northern Ireland to £153,000 (9.0%).
- London continues to be the region with the lowest annual growth (2.2%) for the eighth consecutive month. House price growth was strongest in the North East where prices increased by 10.8% in the year to July 2021.
Cut-price fashion and homeware chain Primark has committed to making its clothing more sustainable over the next decade, promising that its strategy will not lead to price rises, our business reporter Joanna Partridge reports.
The retailer has pledged to make clothes that can be recycled by 2027, while all of its clothes will be made from recycled or more sustainable sourced materials by 2030.
Just a quarter of the clothing sold by Primark is currently made from recycled of sustainably sourced materials.
The chain, which is owned by Associated British Foods, said it intends to start making its men’s, women’s and kids’ entry-price t-shirts with sustainably-sourced cotton over the next year.
The company has also vowed to make its clothing more durable, so they last longer, as part of its promise to “make more sustainable fashion affordable for all”.
Returning to our main story, UK inflation, my colleague Hilary Osborne, who runs our Money team, has done a handy Q&A.
Here is some reaction to the rebound in eurozone industrial production in July. Peter Vanden Houte, ING’s chief economist covering Belgium and Luxembourg, says:
Eurozone industrial production recovered strongly in July after two months of contraction. As the seasonal adjustment flatters the summer months, it is too soon to dismiss the negative growth impact of supply chain problems. Meanwhile, the drop in labour costs is a statistical quirk.
We have to wait until September to know the extent to which supply chains have normalised and production can pick up more structurally, but recent reports are still qualified in that regard. Don’t get us wrong, the July figures are certainly good and courtesy of the recovery in the services sector, GDP growth is likely to hover around 2% quarter-on-quarter in 3Q, but we anticipate slower growth from 4Q onwards.
Holly Mackay, the chief executive of the website Boring Money, says:
We know that many consumers do not invest because they don’t know where to start or who to trust. Our research confirms that consumers are very aware of the potential for capital loss – in fact they tend to over-estimate potential losses meaning they often see investing as overly risky.
Our findings show 45% of savers with more than £10k in cash say they would consider investing in the future. So while there is a general appetite to in invest, we see a confused understanding of risk and what that actually looks like in practice.
The gender investment gap is well documented and we see women in particular are recklessly cautious in their approach. Any developments which support better, more helpful dialogue with consumers about the longer-term potential of mainstream, diversified investment portfolios have to be welcomed.
The UK’s financial watchdog has today set out a plan, and targets, to tackle investment scams.
Financial scams have rocketed, as more people look for investments on the internet, and since pension freedoms were introduced. Consumers lost nearly £570m to investment fraud in the year to April – it’s tripled since 2018.
The collapse of the investment firm London Capital & Finance forced the government to pay millions of pounds in compensation to investors.
The Financial Conduct Authority has pledged, by 2025:
- Reduce by 20% the number of consumers who could benefit from investment earnings but are missing out. There are nearly 8.6m consumers holding more than £10,000 of investible assets in cash.
- Halve the number of consumers who are investing in higher risk products that are not aligned to their needs. (6% of consumers increased their holdings of higher risk investments during the pandemic, with 45% of self-directed investors saying they did not realise the risks.)
- Reduce the money consumers lose to investment scams perpetrated or facilitated by regulated firms.
- Stabilise the £833m compensation bill for the Financial Services Compensation Scheme, and target a year-on-year reduction in the Life Distribution and Investment Intermediation funding classes from 2025 to 2030.
To achieve these goals, the watchdog will explore changes in rules to make it easier for firms to provide more help to consumers who want to invest in relatively straightforward products.
The FCA is also launching a new £11m investment harm campaign, to help consumers make better-informed decisions and to reduce the number of people investing in inappropriate high-risk investments. And it promised to be more agile in how it “detects, disrupts and takes action against scammers”.
Sarah Pritchard, executive director of Markets at the FCA, said:
Investors have never had more freedom – technology has democratised the market, new products have become available, and people have better access to their life savings than before. But that freedom comes with risk. We want to give consumers greater confidence to invest and to help them do so safely, understanding the level of risk. The package of measures we have announced today are intended to support that – we want people to have greater confidence to invest. We also want to be able to adapt more rapidly to the changing market and be assertive where we see poor conduct and consumer harm.
The FCA has already taken some action to improve the market, for example by banning the mass-marketing of speculative mini-bonds.
Industrial production in the eurozone has come in much stronger than expected. It rebounded by 1.5% in July from June, according to Eurostat, the EU’s statistical office. In June, industrial production – which comprises factory, utility and mining output – fell by 0.1%. Analysts had expected a 0.6% increase in July.
The NHS app is collecting and storing facial verification data from citizens in England in a process which has fuelled concerns about transparency and accountability, in exclusive news reported by my colleague Rob Davies.
The data collection is taking place under a contract with a company linked to Tory donors called iProov, awarded by NHS Digital in 2019, which has yet to be published on the government website.
Privacy campaigners say the opacity of the relationship between London-based iProov and the government raises questions about how securely the information is held, with one saying they were “deeply concerned” about the secrecy surrounding the use of data.
An NHS spokesperson confirmed law enforcement bodies were able to request data, but that a special panel reviewed such requests, taking into account the health service’s duty of confidence.
Spreading some early Christmas cheer, John Lewis has announced that it is recruiting 7,000 temporary workers for the festive period – 2,000 more than last year.
It is offering free food and drink to tempt potential joiners, amid labour shortages in some sectors of the economy.
The employee-owned partnership, which runs 34 John Lewis department stores and 331 Waitrose supermarkets and has a big online operation, is also hiring more than 550 permanent, full-time drivers and warehouse workers.
John Lewis said:
We will offer free food and drinks to partners and temporary workers from 4 October to 31 December to help ensure we can attract the help we need.
Official data out yesterday showed businesses reported more than 1m job vacancies in the three months to August, the highest number since these records began in 2001.
In Italy, inflation nudged higher to 2% in August, less than the flash estimate of 2.1%, according to the country’s statistics institute Istat. Higher energy and food prices were the main factors pushing up the inflation rate. Between July and August, the consumer prices index rose 0.4%.
The surge in the UK’s headline rate of inflation spells further bad news for business hot on the heels of last week’s rise in national insurance contributions, says the real estate adviser Altus Group.
Next month’s CPI rate (September) will determine business rates rises next April for 2022/23. Altus forecasts 3.2% would signal that gross business rates bills would rise by £1.07bn in England, of which £259.33m would be shouldered by the embattled retail sector without government intervention.