UK economy latest news: Govt 'not expecting' planned blackouts; as house prices fall for second time in three months (2023)

Key points
  • Two and five-year fixed mortgage rates rise again
  • What should I do if there's a blackout?
  • Company insolvencies hit highest level since 2009
  • Truss rules out energy-saving campaign amid power blackout warning
  • House prices fall for second time in three months
  • Govt not asking people to use less gas and electricity this winter
  • Energy price cap rises - here's what you need to know
  • Your stories:Mother of disabled child says she'll 'freeze' this winter to keep daughter alive
  • Your dilemmas: Do you have any advice on budgeting for having a baby - what help is available?
  • Helplines:Who to call for help during cost of living crisis

16:55:01

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16:10:01

How is cost of living crisis is affecting business?

Our politics and business correspondent Amanda Akass takes a look at business performance over recent months and how the cost of living crisis is impacting them.

15:40:01

Psychologists warn crisis is having disproportionate impact on women’s mental health

(Video) The Housing Market ‘Is Crashing,’ Says KPMG Chief Economist

Women feel more anxious about paying bills and household costs and depressed about the cost-of-living crisis than men, a survey suggests.

The British Psychological Society (BPS) warned that the crisis is having a disproportionate impact on women's mental health.

YouGov polled 2,006 adults in Britain between 6 September and 7 September for the charity, which represents psychologists in the UK.

It found that 61% of women said they were more anxious about paying bills than they were a year ago, compared with 47% of men.

Three in 10 women said money worries were making them feel depressed, against 26% of men.

The BPS is joining a host of organisations and politicians calling for the government to increase benefits in line with inflation.

Julia Faulconbridge, a chartered psychologist and member of the BPS's division of clinical psychology, said: "We know women often shoulder more of the childcare and home responsibilities and are more likely to be in low-paid and insecure work, increasing their chances of being hit by rising prices, and subsequently experiencing greater anxiety, stress and worry.

"There is a clear causal link between living in poverty and mental health difficulties."

The government has not ruled out a real-terms cut to benefits, with reports suggesting payments could instead be raised in line with the average rise in earnings. A decision is expected in November, to come into effect in April.

15:10:01

Cost of living: The price of hunger

Long before the recent economic woes hitting the pound, mortgages and the price of essentials, a survey in April from The Food Foundation charity revealed nearly two and a half million people had said they'd not eaten for a whole day because they couldn't afford or get access to food.

Those numbers will now be much, much higher.

On the Sky News Daily podcast with Niall Paterson, we examine a snapshot of what is happening in the supply chain - from farm to table - and its impact on all those in it.

14:40:01

(Video) Is Britain Heading into a Major Housing Crisis?

How to light your house in a blackout

While the National Grid has warned that households could lose power for up to three hours at a time this winter if gas supplies run extremely low, the government has said it is not expected to happen.

Sky News looks at ways in which you can keep your home lit if a blackout was to occur.

Torches

Without electricity, you may want to turn on your torches which you keep in various rooms. They're accessible and powered by batteries.

Wind-up lamps

These lamps require a bit of elbow grease but are a good alternative to other light sources. You can charge them up by hand-winding them and they are often water-resistant.

Candles

Candles are another great alternative, although caution must be taken to make sure they are used safely, particularly if you have children or pets.

Head torches

If you're looking for something more mobile, you could use a head torch. You can buy these in stores but also online and they are a good way to keep your home well-lit while walking around.

14:10:01

Analysis: What insolvency means for businesses and consumers

Earlier we reported that the number of company insolvencies in England and Wales hit its highest level for 13 years in the second quarter of the year.

Business expertGemma Godfrey helps to explain what insolvency means for businesses and consumers.

She says: "What we're talking about here is companies that can no longer afford to operate. The reason that it's important is that it can lead to job losses. So insolvent companies are those that can't owe the amount that they owe to different companies. And if we look at the companies that are liquidating they're already selling off their assets to cover the amount of money they owe, so these are companies that can't afford to operate.

"If we look at what's driving this - it's energy bills. The companies that are still operating all are expecting, three-quarters of them are expecting the next time they fix their energy contracts, they are expecting their energy bills to go up by more than double.For consumers where we're going to feel it the most is in arts and entertainment, so things like theatre tickets, cinema tickets, all going up in costs".

(Video) Cost of Living: Mortgage market fears - Analysis

13:40:01

What energy saving measures work best?

As more and more spotlight is shone on ways to save energy this winter, Sky News takes a look at how some of the different measures stack up, as well as which appliances cost the most to use.

When it comes to appliances, electric showers cost the most to use at an average of £3.72 per week. While some of the cheapest appliances to use include electric razors, lamps and vacuum cleaners.

13:10:01

Thieves feared to have slaughtered stolen sheep as criminals 'weaponise' crisis

Ed Lovejoy was the victim of a daring raid on his farm, and an expert tells Sky News that Britain is facing a "potential crime crisis" linked to the soaring cost of living.

A total of 116 ewes had vanished from his flock of 460, and the missing livestock were worth £17,000.

Electricity thefts, shoplifting, insurance fraud and rural crime are among the offences said to be on the increase.

Brazen thieves had staged a daring raid to steal the animals, which are now feared to have been slaughtered and their meat sold on the black market.

It comes amid warnings that Britain is a facing a "potential crime crisis" linked to the soaring cost of living.

Read more on this story from ourhome affairs reporter, David Mercer.

12:39:01

Cheapest supermarket in September revealed

Aldi was the cheapest supermarket in September, according to the latest monthly analysis from Which?.

Prices were compared based on a basket of 48 popular grocery items in September, like Heinz baked beans, milk and tea bags.

The pricing analysis found that shoppers would have paid £75.61 for the shop at Aldi, beating rival discounter Lidl by £1.84.

Which? found that the most expensive supermarket in September was Waitrose, with the 48 popular grocery items costing £99.40 on average, making it £23.79 more expensive than Aldi.

The third and fourth cheapest supermarkets were Asda at £84.87, followed by Sainsbury’s at £86.34.

In the wider analysis – including 149 items across the six 'traditional' supermarkets – we found that you could save £41.13 by shopping at Asda rather than Waitrose.

(Video) Why it's so hard to buy a home in London

12:17:04

Former energy advisor questions why government is against energy-saving campaign

Former government energy adviser Stephen Fawkes says the chance of blackouts this winter is "a small risk, but a real risk".

Speaking to Sky News, he was asked if he thinks the current government plans are sufficient.

He said: "I'm sure they're sufficient within National Grid.

"I think where I would differ from the government is exactly this position of not having at least some campaign to say it would be a good idea and it will help the situation if you take these certain measures to save gas."

Mr Fawkes, who is now managing partner at the energy consultancy EP Group, gave the example of turning down the flow temperature on condensing boilers which he said enables them to condense and save energy.

"It does not affect the comfort.

(Video) The Great Fall Of China's Housing Market: Who Will Pay The Price? | Insight | China Mortgage Boycott

"Just by turning down the flow temperature on condensing boilers you could probably say five percent of your gas bill.

"Well if everybody with a condensing boiler, or even if only half the people with a condensing boiler, did that then that does add up to a significant amount of gas."

FAQs

Will house prices drop in 2022 UK? ›

Average UK property values rose by 8.2% in the 12 months to August 2022, a slight decline on the annual growth rate recorded the previous month, according to house price data from Zoopla, Andrew Michael writes.

Will the housing market crash UK 2023? ›

Base case forecasts -- which heavily influence rates -- are more measured, though Lloyds Banking Group Plc still predicts a 7.9% fall in house prices next year. Barclays Plc and HSBC Holdings Plc are more bullish, both predicting growth in UK property prices in 2023.

Will house prices drop in 2026 UK? ›

But Savills also believed interest rates would “peak” next year and then start to be reduced and as affordability eased UK house prices would steadily rise again, going up by 7% in 2026 and 5.5% in 2027.

Will house prices drop again UK? ›

House prices in the UK are likely to fall by at least 10% next year as mortgage providers pull deals and raise interest payments to levels not seen since before the 2008 financial crisis, property experts have predicted.

How much over asking price should I offer on a home 2022 UK? ›

How much over asking price is too much? In a hot market, experts recommended offering at least 1% to 3% above the asking price in a bidding war. But today's home buyers may face less competition. In June 2022, the average home actually sold for about 1% below its list price, according to Redfin.

Will house prices fall in 2022 2023? ›

Independent economic research consultancy Capital Economics has warned rising interest rates could trigger house prices to go into reverse, suggesting they'll drop by around 5% in 2023 and 2024. While they predict house prices will drop in 2023, they've also suggested price growth will remain strong in 2022.

Will my house be worth less in 2023? ›

Will house prices go down in 2023? Depending on who you ask, the forecast for 2023 is mixed. Most experts in the housing industry predict less buyer demand, lower prices, and higher borrowing rates. Rate increases, along with a shortage of availability, have pushed many purchasers to the sidelines.

Is Britain heading towards a house price crash? ›

There are growing concerns that the UK is headed straight towards another housing market crash. The British Pound has fallen to a record low against the US Dollar, which has seen the Bank of England hike interest rates by 0.5 percentage points to 2.25%.

Is the UK heading towards a house price crash? ›

With unemployment the lowest in almost 50 years, at 3.6%, and only expected to start rising in mid-2023 in the Bank of England's latest forecast, most experts are expecting the housing market to slow, rather than crash.

What will happen to house prices in 2024? ›

When will house prices hit rock bottom? The Centre for Economics and Business Research, a think tank, expects house prices will fall by between 8pc and 10pc over the next year. Karl Thompson, of CEBR, said: “We expect the housing market will bottom out at the end of 2023 and early 2024.”

What will happen to house prices in 2025? ›

House price predictions up to 2026

This sees 2022's 8% price growth followed by 1% for 2023, 2% for both 2024 and 2025, and 3% for 2026.

Will house prices drop in 2025 UK? ›

Prices outside the most exclusive addresses of central London will slump by 12.5 per cent next year with a further one per cent dip in 2024, before a recovery begins in 2025, according to new forecasts from agents Savills.

Are house prices going to drop again? ›

Figures show that house prices are starting to fall. This decline is expected to continue in 2023. There are a number of reasons for this: Interest rates have increased from their record lows at the end of 2021, making mortgages more expensive.

Is now a good time to buy a house UK? ›

The UK's biggest mortgage lender, Lloyds Banking Group, is predicting a housing market slump, with prices dropping 8% in 2023, and then stagnating for the following four years. The property platform Zoopla is also forecasting that house prices will fall next year, and puts the drop at 5%.

Is it a good time to move house 2022? ›

2022 will remain a strong sellers' market

"If you do decide to sell your home in the new year, your chances of a finding a buyer are very high, as we're still seeing huge levels of buyer demand, and not enough homes available to buy," says Tim.

How do you win a bidding war house in 2022? ›

9 ways to win a bidding war
  1. Find out what the seller wants. ...
  2. Get a preapproval or precommitment for a mortgage. ...
  3. Be flexible with the timing. ...
  4. Offer a large earnest money deposit. ...
  5. Be a cash buyer. ...
  6. Offer concessions to the seller. ...
  7. Offer an appraisal gap guarantee. ...
  8. Write a 'love letter' to the seller.
11 May 2022

Do houses sell above asking price? ›

A lmost one in three homes are selling at on or above their asking prices in the capital, according to new research published today. Analysis of Land Registry sales data has revealed that 30 per cent of properties have either matched or exceeded their owners' expectations.

Should you always offer below asking price? ›

Many people put their first offer in at 5% to 10% below the asking price as a lot of sellers will price their houses above the actual valuation, to make room for negotiations. Don't go in too low or too high for your opening bid. If you make an offer that's way below the asking price, you won't be taken seriously.

Will house prices go down in 2022 the Times? ›

Interest rate predictions

This could in turn push average mortgage rates upwards of 8% (while still historically low, that is more than double the 1.6% rate recorded at the end of 2021) Based on this data, Capital Economics has forecast house prices to rise throughout 2022, before falling by 5% in 2023.

Are house prices going to decrease 2022? ›

It said house prices will have risen 6 per cent by the end of 2022 but that they will fall 5 per cent in 2023 and a further 5 per cent in 2024 as a result of the sudden spike in mortgage rates caused by the government's fiscal plans.

Is now a good time to buy a house Martin Lewis 2022? ›

Martin Lewis has issued a fresh warning to home buyers as rates are expected to rise 6% in 2023. The Money Saving Expert founder has advised that first time buyers should not be buying a house right now unless they are prepared and plan to live in the home for the long term future.

Will 2023 be a better year to buy a house? ›

Despite housing prices expected to drop in 2023, it will become more expensive to purchase a home. According to a new projection from Freddie Mac, the for-sale cost of a home is expected to drop . 2% in 2023.

Will 2024 be a good time to buy a house? ›

They predict prices will rebound and rise again in 2024, with the median price ticking up 3.3% to 376,000 by the end of 2024. “The primary driver behind the housing market correction thus far has been sharply higher mortgage rates,” the Wells Fargo researchers wrote.

What should you not fix when selling a house? ›

Fixing cosmetic damage

Sure, peeling paint, a weathered back door and scuffed floors may make things look a little run-down, but if you are looking to save some cash on repairs and renovations, you'll rather want the money to be put to good use.

Will the housing market crash in 2024 UK? ›

The market is likely to continue to cool in the short term and sellers will need to be careful to price their properties accurately.” Nationally, Savills is expecting the average house price to fall by 10 per cent in 2023 with growth resuming in 2024 – totalling 18 per cent up to 2027.

Is a housing crash good for buyers? ›

Buying a home during a recession can be a good idea — but only for people who are lucky enough to remain financially stable. Mortgage rates may drop as the Fed tries to help the economy recover, and with fewer qualified buyers and less competition, home prices can drop as well.

Will the property market in the UK crash? ›

House prices will not crash next year, though the number of transactions will fall sharply, major agency JLL predicts. The housing market is set for 'a correction' in 2023 that will see a 6% reduction in property prices, not the 20-30% drop some feared.

Should I sell my house now? ›

With continued supply shortages and high buyer demand, now is a good time to sell your home. And with interest rates on the rise, it may be better to sell sooner rather than later — if rates spike much more, some prospective buyers may retreat from home shopping. But consider your reasons for selling carefully.

Will mortgage rates go down 2024? ›

"If our forecast for Fed rate cuts is realized, mortgage rates are likely to fall slightly [in 2024] just as cooling inflation pressures boost real income growth. A modest improvement in sales activity should then follow, which will reignite home price appreciation heading into 2024," the Wells Fargo researchers write.

How high could mortgage rates go in 2023? ›

How high will mortgage rates go in 2023? The experts we polled expect average 30-year mortgage rates to land anywhere between 5.0% and 9.31% in 2023 — a huge potential range. Predictions fall between 4.5% and 8.75% for the 15-year fixed mortgage rate.

Will house prices go back up in 2024? ›

A new report from Moody's Analytics forecasts that — given increased borrowing costs, elevated inflation, and a softening labour market — home prices will see a peak-to-trough decline of about 10% by early 2024.

What is the prediction for the housing market in the next 5 years? ›

The CoreLogic HPI Forecast indicates that home prices will increase on a month-over-month basis by 0.0% from September 2022 to October 2022 and on a year-over-year basis by 3.9% from September 2022 to September 2023. Nationally, home prices increased 11.4% year over year in September 2022.

What will happen to house prices in 2026? ›

According to latest predictions from Knight Frank, house prices will then begin to rise, going up by two per cent in 2024 and four per cent in 2026. Overall, this means that over five years house prices will go up by 1.5 per cent.

What will happen to UK property market 2022? ›

29 September: Zoopla Warns Soaring Rates Will Hit Affordability. Average UK property values rose by 8.2% in the 12 months to August 2022, a slight decline on the annual growth rate recorded the previous month, according to house price data from Zoopla, Andrew Michael writes.

Will mortgage rates go down in 2024 UK? ›

Mortgage rate predictions for the next 5 years

The average rate on a five-year fixed mortgage rate is forecast to rise by 0.3 per cent this year, rising further to just over one per cent next year, and over two per cent in 2024.

Are property prices likely to fall UK? ›

Matthew Pointon, a senior economist at the consultancy Capital Economics, said: “With mortgage rates set to remain over 5% in 2023, demand will remain depressed and lead to a 12% peak-to-trough fall in house prices.”

Is the housing market slowing down UK? ›

Despite the strength that the housing market has shown against an abysmal economic backdrop, both data and survey evidence suggest that activity is slowing. The continued rises in energy and food bills are reducing demand in the housing market as people feel their budgets are squeezed.

Is it better to wait until 2022 to buy a house UK? ›

In fact, most house price indexes predict a small increase — up to 5% — over the course of the year. Due primarily to the pandemic and its impact on the economy and household finances, the outlook for the UK housing market in 2022 remains uncertain.

What month is the best to buy a house UK? ›

April or May are generally the best times to buy a house in the UK. There are usually more properties on the market as sellers emerge from winter and consider a move, while the market is generally more active once the weather starts to warm up and the clocks go forward.

Will 2022 be a good time to buy a house UK? ›

Rising inflation and costs do mean house prices could fall, though it is “unlikely that house prices will crash”. Property site Rightmove says that house prices could fall slightly towards the end of 2022, although it predicts that prices could still be 5% higher than they were at the end of 2021.

Is it better to build or buy a house 2022? ›

Is it cheaper to build or buy a house? As a rule of thumb, it's cheaper to buy a house than to build one. Building a new home costs $34,000 more, on average, than purchasing an existing home. The median cost of new construction was $449,000 in May 2022.

Should I sell my house in 2022 UK? ›

House price growth has been ongoing during the pandemic, and it shows no signs of slowing anytime soon. For this reason, 2022 could be a great time to sell your home. In fact, it may be wise to sell before house prices inevitably drop, interest rates rise or buyer demand wanes.

Why you should sell your home now 2022? ›

But rising interest rates and high inflation could slow demand for housing soon, which is why some real estate experts recommend that you sell now. Tomas Satas, founder and chief executive officer of Chicago-based Windy City HomeBuyer, recommended that sellers move quickly to list their homes.

Is 2022 a good year to buy a house UK? ›

The Halifax House Price Index is calculated from its own database of approximately 300,000 mortgage approvals. Recent data shows average house prices increased by 0.4% in August 2022 to £294.260, followed by a slight fall of 0.1% in September 2022.

Are house prices likely to come down 2022? ›

Interest rate predictions

This could in turn push average mortgage rates upwards of 8% (while still historically low, that is more than double the 1.6% rate recorded at the end of 2021) Based on this data, Capital Economics has forecast house prices to rise throughout 2022, before falling by 5% in 2023.

Will house prices come down in 2022? ›

But that would mainly wipe out some of the house price rises experienced during the pandemic while leaving a few negative equity cases. However, it is more likely that house prices will fall by up to 5 per cent in 2023 with mortgage rates falling to 4 per cent, according to the property site's analysis.

Is 2022 a smart time to buy a house? ›

Less Competition For Homes For Sale

Another reason Fall 2022 is a good time to buy a home is that competition for homes is lower. According to the National Association of REALTORS®, more sellers have homes for sale than during any point in the last twelve months.

Should I wait until 2022 to buy a house? ›

Don't expect much relief in the form of lower rates in the coming months. Therefore, it certainly does not seem to be a good time to buy a house as rates have risen much more rapidly in 2022 than most industry analysts and economists had initially predicted.

Is it a good time to buy a house in the UK? ›

The UK's biggest mortgage lender, Lloyds Banking Group, is predicting a housing market slump, with prices dropping 8% in 2023, and then stagnating for the following four years. The property platform Zoopla is also forecasting that house prices will fall next year, and puts the drop at 5%.

Will mortgage rates drop in 2023? ›

How high will mortgage rates go in 2023? The experts we polled expect average 30-year mortgage rates to land anywhere between 5.0% and 9.31% in 2023 — a huge potential range. Predictions fall between 4.5% and 8.75% for the 15-year fixed mortgage rate.

What will happen to house prices in 2023 UK? ›

Lender Lloyds Banking Group (LLOY) has just forecast a near 8% fall in house prices in 2023, but the media jumped on the possibility of an 18% fall in the most extreme scenario. All that means the government's role in what happens next cannot be overstated.

Will 2024 be a good year to buy a house? ›

They predict prices will rebound and rise again in 2024, with the median price ticking up 3.3% to 376,000 by the end of 2024. “The primary driver behind the housing market correction thus far has been sharply higher mortgage rates,” the Wells Fargo researchers wrote.

What is the best month to buy a house? ›

Lowest Home Prices Are Typically in January

Median sales prices are more affordable between October and February compared to other months of the year. For example, January 2021 had sales prices listed at $329,242, which peaked at $385,546 in June 2021.

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