you are here: Homepage > News Archive > April 2007 > 21st April >

Assetsure news 21st April 2007 Changes in Lifestyle mean more Houses required - Despite the high costs of homes in Britain and the associated costs involved with moving, we are moving house more often than ever according to statistics released by the Centre of Future Studies.  The original pattern of home life was to live with your parents, move out when you married in to your own family home, then sell up and buy a smaller property when your own children moved out Today, we are healthier and living longer and our lives involve more stages, thus we require more homes. By 2026 it is claimed that instead of the traditional 5 cycles of house living, our lives will include nine cycles. These additional cycles include living on our own, sharing with friends etc. The higher incidence of divorce in the United Kingdom has led to an increased demand for rented property as more and more people decide to live alone. If these people decide at some stage to remarry, then a further home is purchased thus adding once more to the cycle. For anyone that is interested , the new home life cycles are  as follows.   Live with parents ( try to make this last as long as possible) Move out and rent a property with friends Live on your own Share with a partner Buy a property and start a family Divorced, live on your own Step Household, sharing with step children or elderly relatives Live on own, children have grown up or moved on Widow/Widower. Fixed rate mortgage deals proving popular - In a sure sign that the market believes that mortgage rates are going to increase, lenders have started to push up rates for fixed rate deals. Borrowers have started to rush to lock themselves in to new deals before  the suspected interest rate increase which could occur as early as next month. Halifax and Abbey still have some fixed rated deals available at 5.2% but it is expected that these will not last for too much longer. The use of interest rates to curb house price inflation is a contentious matter, although it puts increasing pressure on homeowners already struggling with monthly payments, it is seen as necessary to prevent prices increasing even further.  Banks & Building Societies traditionally withdraw fixed rate deals when there is anticipation of a rate increase, they do this to protect their own borrowing costs. It is expected that interest rates will rise by 0.25% and it is thought that this will have the desired effect on cooling the housing market.  We're all going on a summer holiday - This week sterling climbed to a 26 year high against the dollar, provoking fears that the UK economy was in danger of over heating. However, on a lighter note it does provide Holiday makers and anyone wishing to travel to the United States need holiday home insurance, with a fantastic opportunity for some consumer spending. Anyone about to embark on a holiday to the United States is likely to receive $2.00 for every £1.00 sterling. The dollar has fallen as much as 15% of late and shopping in New York can save you as much as 70% on some products. Flights to the USA have never been cheaper, Home ownership by Brits in Florida is as popular as ever with the prices of Holiday homes considered more reasonable than on the Spanish Costa. People buying goods online are being warned though that goods imported from the USA are likely to incur import duties and VAT and these are levied and collected by the post office. Many persons have bought goods online from auction sites such as  Ebay only to find that the Royal Mail have an unwelcome surprise for them when the goods arrive. Landlords Deposit Rules-  Assetsure have previously written about the new Tenancy deposit rules for Landlords and the sterling work being carried out by such organisations as ARLA to help their members understand their responsibilities. There is a feeling though that many Landlords still do not fully understand what is required of them and there is much confusion as to exactly what needs to be done to comply with the legislation. Many Landlords are worried about breaking the law and are turning to letting agents to help them achieve compliance. Any Landlord seeking information on this topic could read our previous article which has some links to web sites that may give a better understanding of the matter.   Tax Amnesty - This week HM Customs and excise announced a tax amnesty for  Brits with undeclared income held offshore. It is anticipated that this amnesty will raise up to 5 billion pounds for the government and a similar scheme aimed at undeclared Uk income could raise even more.  Their is a general misconception that money in foreign bank accounts often put their just to pay bills on unoccupied property or holiday homes is not subject to income tax. However this is not the case and if you are a UK citizen, living in this country you are expected to declare interest earned in foreign bank accounts. Anyone having concerns on the tax issues surrounding Holiday Home ownership, should seek professional advice.   back to top   Copyright Assetsure Limited 2007