There’s been a jump in demand for one and 2-bed flats as renters feel the cost-of-living squeeze, and fewer renters looking for 2- and 3-bed houses
The average rent has increased by £115 per month since last year, reaching £1,051 per calendar month – and accounting for 34.4% of the average income of a single earner
Rental growth has accelerated over the last 12 months – from less than 2% in July 2021 to 12.3% today – although there are signs that rental growth is starting to peak at current levels
In a reversal of a trend seen during the pandemic, rental growth in urban markets (10.5%) is now outpacing that in rural markets (8.5%) as strong employment growth drives demand in cities
There is no real prospect of significantly improved rental supply in the near term as private landlords continue to sell off homes due to tax and regulatory changes and renters decide to stay in their current homes
Renters are being pushed towards smaller properties and lower running costs in the face of higher rents and rising living costs including rising energy prices, according to to Zoopla, the UK’s leading property destination, in its quarterly Rental Market Report.
Chronic shortage of supply pushes rents higher
The average rent has increased by £115 per month since last year, reaching £1,051 per calendar month – and accounting for 34.4% of the average income of a single earner. This surge in rents is heavily impacted by a severe supply and demand imbalance with the stock of homes available to rent standing at just half of the five-year average – while the average letting agent currently has just eight homes available to rent.*
This chronic supply shortage is also impacted by an increase in renters staying put in their properties to avoid rent hikes and landlords continuing to sell properties in the face of tax and regulatory changes. Currently, approximately 3 in 4 renters will decide to stay in their current property and although they will experience lower levels of rental growth of 4% or less – this will squeeze supply in the market as a result.
There’s been an acceleration in demand for one and 2-bed flats as renters feel the cost-of-living squeeze, and fewer renters looking for two and 3-bed houses. Outside of London, the average asking rent is £105 lower per month for a 2-bed flat compared to a 3-bed house.
Renters making decisions about what type of property to rent will also consider running costs and rising energy prices are likely to be playing a role in the shift in demand to smaller homes.
When it comes to energy prices, the amount of gas to heat and run a purpose-built flat for a year is 40% lower than a terraced house and 25% lower for a converted flat.** New-build city centre flats are also becoming increasingly appealing to renters seeking out smaller homes with lower running costs.
Annual rental growth nears its peak
Rental growth has accelerated over the last 12 months from an annual rate of less than 2% in July 2021 to 12.3% today, while rental growth is out-pacing earnings growth in all regions and countries of the UK. Rental growth is ranging from 7.6% in the North East to a staggering 18% in London – however, there are signs that rental growth is close to peaking.
Despite rents in London rebounding from a low base, the pace of rental growth in London is not sustainable at current levels with average rents in London currently 7.8% higher than pre-pandemic.
In a reversal of a trend seen during the pandemic, rental growth in urban markets (10.5%) is now outpacing that in rural markets (8.5%) as strong employment growth drives demand in cities.
The strongest performing urban markets are London (17.8%). Manchester (15.5%), Glasgow (14.4%) and Bristol (12.9%) – where rental growth is standing above the UK average of 12.3%. Rents are also rising faster at the top end of the market with asking rents for 2-bed flats rising more quickly at the upper end (top 25%) of the market in comparison to the lower end of the market where demand is more price sensitive.
What’s the outlook for the rental market?
There is no real prospect of significantly improved rental supply in the near term as private landlords continue to sell off homes due to tax and regulatory changes. Renters renewing their tenancies will also amplify the fierce supply squeeze and keep upward pressure on rents into 2023.
There is headroom for some renters to pay more, especially outside London and the South East, however overall, we expect the headline rental growth to slowly taper over Q4 and into 2023.
Richard Donnell, Executive Director at Zoopla comments: “Rents have surged ahead over the last year but there are signs that the pace of growth is peaking and set to slow into 2023. Renters are responding and looking for smaller, better value for money homes to rent with an eye on energy costs as much as rental levels.
“What the rental market needs to combat these challenges is more new homes for rent. Greater regulation has seen less new investment and a small but growing number of landlords selling up, meaning the rental market has stopped growing since 2016.
“There is a risk that more regulation to improve standards or potential new measures to dampen rental growth, as proposed in Scotland, may compound the supply problem which is pushing rents up in the first place. Policymakers need to tread a careful path between protecting consumers and ensuring a decent supply of homes for rent.”
Hannah Gretton, Lettings Director at LSL’s Your Move and Reeds Rains brands comments: “We are experiencing high levels of demand for rental properties with homes being snapped up within hours of hitting the market.
“With over 270 lettings branches nationwide, it’s a picture that is reflected up and down the country with particular demand in urban areas.
“On average, we are seeing double figures of enquiries per property with a one-bedroom property in Manchester last week receiving over 100 requests to view, highlighting just how busy our branches are and the challenges renters face when it comes to finding an appropriate property.”
It’s only a week since Nicola Sturgeon announced Scotland’s Programme for Government, just seven days since Liz Truss became the new Prime Minister.
Last Thursday, the STUC organised a mass demonstration and rally at the Scottish Pariament to campaign for a better deal for Scotland’s workers.
Coverage of the event was overshadowed by unfolding events at Balmoral, but when Scotland slowly returns to ‘normal’ life after Her Majesty’s funeral on Monday attention will turn once again to the outstanding political issues facing our country.
Responding to the Programme for Government last week, STUC General Secretary Roz Foyer said: “Today’s Programme for Government shows what can be achieved through industrial action and collective campaigning.
“The Scottish Government is to be commended for freezing rents. If implemented correctly – and we are pressing for further answers – this will help thousands of households across Scotland when they need it most.
“When used, the powers of our Parliament can bring positive change This must now extend to Scotland’s tax powers. There are constraints but it simply isn’t true that Scotland has a finite budget. The Scottish Government could raise millions from income, wealth and business taxes. The Local Visitor Levy is a step in the right direction in this regard.
“In a cost-of-living emergency, we need strides – not steps. The Scottish Government could have coupled the welcome increase in the Scottish Child Payment with expanding universal free school meals to all. It’s a political choice not to feed hungry children; a choice we’re unwilling to accept.”
AFTER weeks of growing pressure, the Government has finally announced it will step in to help households and businesses from soaring energy prices.
Under new plans announced by Liz Truss, a freeze will protect tens of millions from bills hitting unmanageable levels.
But the policy, the first major move of Ms Truss’ premiership, comes at a cost. Not just will the Government have to find an estimated £150bn to fund the scheme. There are also fears that many energy providers could look to ration fuel if households don’t reduce their usage over the Winter.
Over the last few weeks, we’ve been bombarded with advice on how to save money on our bills.
Here energy saving expert Jonathan Rolande, from House Buy Fast, condenses them into a brilliant a-z guide which could help households to save thousands of pounds a year.
Jonathan said: “The reality is the full impact of the cost of living crisis is yet to kick in and the full impact of the squeeze will probably be most acutely felt in the next few weeks.
“But there are steps you can take to save money which, if you introduce now into your daily lives, can also help you save money for the rest of your life.”
Here’s Jonathan’s A-Z guide on saving money:
Avoid tumble dryers. They use a shocking amount of energy, and can cost upwards of £300 a year to run based on usage twice a week. You can easily work out how much it costs to run a tumble dryer yourself based on your specific model if you know the kWh. As a more cost-effective alternative consider drying clothes outside on a washing line or even investing in a heated clothes airer which usually costs around 6p an hour to run.
Bleed your radiators. Not only will it release pressure on your finances, trapped air can make your radiators less efficient, so they’ll be slower to heat up.
Draw the curtains. It sounds simple but failing to do so means you can lose a lot of heat at night in every room.
Dusty condensing coils behind your fridge and freezer, which are used to cool and condense, can trap air and create blockages. This is not what you want. Keep them clean and they’ll stay cool and use less energy.
Exhaust fans around the home cost a fortune. Turn off kitchen or bath exhaust fans as soon as possible after you’ve used them.
Fill it up. Don’t worry I’m not referring to the petrol tank. Fill up the washing machine and dishwasher. Research by Thames Water and Gov.uk recently found that 68 per cent of households are only putting the dishwasher and washing machine on when they are completely full in a bid to save energy. It is a savvy move to wait until a washing machine or dishwasher is full as the appliances will use the same amount of energy to clean fewer items. So it’s smarter to wait to do fewer washes with more items, than waste energy on more half full washes.
Going away on holiday or a business trip? Make sure to turn off your water heater while you are gone. Otherwise it will keep heating the water in a “standby mode” costing you money in the process.
Hive is, in my opinion, the best energy saving app on the market right now. Use the app to keep track of what’s happening at home and set schedules or switch any home electrical device on or off rather than leaving them on standby.
Insulate your loft. I know it’s probably a job you’ve had on the to-do list for a long-time but now is the perfect moment. You can save hundreds of pounds a year by creating better insulation up there.
Things may be tight, but consider treating yourself to a jacket – for your boiler… The best come with a recommended thickness of 75mm and help keep your water hotter for longer and reduce your energy bills. A new one is easy to fit – the materials will only cost you about £25 and it could save upwards of £100-£150 a year.
The kitchen is a great place to cook up money saving methods. Consider using slow cookers and pressure cookers during the spending squeeze. They are more economical and you can batch cook dishes like stews, curries and soups that will last for days.
Loft hatches are the forgotten item when it comes to energy saving plans. Attach insulation to the top of it and create a seal with draught proofing around the perimeter. So many people spend a huge amount insulating their lofts, but neglect the loft hatch completely meaning lots of heat escapes up through the hatch. If you are looking for a really simple way to save energy in the home, then ensuring the loft hatch is adequately insulated and draught proofed is a great way to get started.
My Earth App is one of my favourite go-to apps at the moment. Originally created by researchers and students at the University of Wisconsin-Madison School of Human Ecology, the app is designed to help you keep track of your personal energy usage, your savings and your total impact. The app contains five main categories: electricity, recycling, travel, food and usage. It includes day-to-day activities to measure how environmentally friendly your actions are. These activities can range from small measures like recycling your glass bottles to larger tasks like switching your appliances with energy-efficient replacements. It also includes a diary for users to check off their activities and lets you visualise how small steps can add up to a bigger impact environmentally.
Nighttime rates are a must during this ongoing credit crunch. A few energy providers charge less for using electricity at certain times of day or night). These off-peak hours tend to be quieter periods when power demand is at its lowest, for example between 8pm and 8am. The name for this type of charging approach is time of use tariffs. The amount you pay depends on the time of day you use electricity. Ask your provider.
Nothing makes life better than a brew. But don’t overfill the kettle. Boiling more water than necessary each time could save you £36 year, based on calculations from the Energy Saving Trust.
Kettles will vary in the amount of energy they use, but you can easily work out how much it costs to boil a kettle by checking the wattage and price you pay for energy per pence/kWH.
Print on both sides of paper. A friend of mine suggested this to me last year and within a few months I’d saved a packet on my printer ink costs. So many of us now work from home and most schoolchildren need to print off work. By switching your printer settings to double-side you can save money double quick.
Flick on the quickwash settingon a dishwasher. The longer washers soak plates at a lower temperature so are cheaper
Radiators are generally set too high in most homes. turn the thermostat down in unused rooms. If you lower the temperature of your radiator down by just one degree you can save £55 a year.
Showers….Look, I’m not going to force you to get in and out in four minutes. If you can, great. One minute less in the shower could save you up to £80 annually.
But there are other things you could do too – like fitting a water-efficient shower head.
The Energy Saving Trust predicts that a water-efficient shower head could save a household up to £195 a year. One minute less in the shower could save you up to £80 annually.
Modern shower heads use current-limiting technology to save up to 40 per cent water usage, while showering under normal water pressure. This will cost you around £20-£40, but will save you in the long run.
Install tap aerators. These ‘inject’ air into the water as it comes out the tap, so while it looks like there is no impact on the flow rate, a fraction of the water is used. These are especially useful if you are on a water meter.
USwitch, Compare the Market and other comparison sites are a must at the moment. Look at them regularly – once a fortnight if you can – as they will help you check to make sure you’re on the correct tariff
The vehicles we own are increasingly being powered by electricity. Aim to charge your car overnight when you could benefit from a cheaper night-time rate for your power.
Wasting power is a no-no in the current climate and leaving appliances on standby is like pouring money down the drain. It’s widely reported that the average household could be wasting as many as 7,374 hours of electricity every year when a device is left on standby.
It’s easy to do. For example, many of us disconnect our phones but leave the charger plugged in. And some devices, such as TVs, don’t have an easily accessible on-off switch.
But leaving devices on standby uses up power – sometimes known as ‘vampire energy’ – and over the course of a year it can really add up.
These are some indicative annual savings, found particularly among older devices:
· Turning off the light in an unused room – £25
· Television – £16-24
· Set-top box – £20-23
· Games devices – £16
· Smart speakers – £3.45 per speaker
· Microwave – £16
And if you’re working from home, don’t forget about office equipment:
· Printers (particularly those with LED displays) – £3-4 a year
· Laptops – £5 (but make sure you shut down and switch off rather than simply closing the lid)
X4 – that’s the amount more you pay for electric heating compared to gas. If you don’t have a choice opt for infrared or if funds allow, try and push for a heat pump – these two types of electric heating are by far the most efficient.
Yellow light bulbs and other LED saving options are just a great way of saving cash. You can save £2-3 per year for every traditional halogen bulb you switch to a similarly bright LED bulb. If the average UK household replaced all of their bulbs with LEDs, it would cost about £100 and save about £40 a year on bills.
Replacing a 50W halogen with an LED equivalent could cut your energy costs by £75 over the lifetime of the bulb – not including the price all the replacement halogen bulbs you no longer need to buy; of a typical LED costs between £2.50-12.
Zap-map is a brilliant new app. It lists and regularly updates electric charging points for cars. You can download it for free and find available charge points locally by searching the most comprehensive database of charging points, plan journeys, share updates and pay for charging on participating networks.It allows you to locate the 33,000 publicly available charging points in the UK when you are out and about, taking the stress out of electric vehicle driving.
Prime Minister Liz Truss’s opening speech on the energy policy debate in the House of Commons yesterday:
Earlier this week I promised I would deal with the soaring energy prices faced by families and businesses across the UK. And today I am delivering on that promise.
This Government is moving immediately to introduce a new Energy Price Guarantee that will give people certainty on energy bills.
It will curb inflation and boost growth.
This Guarantee – which includes a temporary suspension of green levies – means that from 1st October a typical household will pay no more than £2,500 per year for each of the next two years, while we get the energy market back on track.
This will save a typical household £1,000 a year. It comes in addition to the £400 Energy Bills Support Scheme.
This Guarantee supersedes the Ofgem price cap, and has been agreed with energy retailers.
We will deliver this by securing the wholesale price for energy, while putting in place long-term measures to secure future supplies at more affordable rates.
We are supporting this country through this winter and next, and tackling the root cause of high prices, so we are never in this position again.
For those using heating oil, living in park homes or those on heat networks, we will set up a fund so that all UK consumers can benefit from equivalent support.
We will also support all businesses, charities and public sector organisations with their energy costs this winter – offering an equivalent guarantee for 6 months.
After those 6 months we will provide further support to vulnerable sectors, such as hospitality, including our local pubs.
My Rt Hon Friend the Business Secretary will work with businesses to review where this should be targeted to make sure those most in need get support. This review will be concluded within 3 months, giving businesses certainty.
In the meantime, companies with the wherewithal need to be looking for ways they can improve energy efficiency and increase direct energy generation
We will be bringing forward emergency legislation to deliver this policy. And my Rt Hon Friend the Chancellor of the Exchequer will set out the expected costs as part of his fiscal statement later this month.
I can tell the House today that we will not be giving in to calls for this to be funded through a windfall tax.
That would undermine the national interest by discouraging the very investment we need to secure home-grown energy supplies. You can’t tax your way to growth.
Instead, we are taking an approach which is pro-growth, pro-business and pro the investment we need for energy security.
This is the moment to be bold. We are facing a global energy crisis and there are no ‘cost-free’ options.
There will be a cost to this intervention. However we are also acting immediately to defray the cost of this intervention in three ways.
Firstly, by ramping up supply.
Following on from the successful vaccine taskforce, we have created a new Energy Supply Taskforce under the leadership of Maddy McTernan.
They are already negotiating new long term energy contracts with domestic and international gas suppliers to immediately bring down the cost of this intervention.
We are also accelerating all sources of domestic energy, including North Sea oil and gas production.
We will be launching a new licensing round, which we expect to lead to over 100 new licences being awarded.
And we will speed up our deployment of all clean and renewable technologies including hydrogen, solar, carbon capture and storage, and wind… where we are already the world leader in offshore generation.
Renewable and nuclear generators will move onto Contracts for Difference to end the situation where electricity prices are set by the marginal price of gas.
This will mean generators are receiving a fair price, reflecting their cost of production, further bringing down the cost of this intervention.
Secondly, today’s action will deliver substantial benefits to our economy, boosting growth which increases tax receipts and gives certainty to business.
This intervention is expected to curb inflation by up to 5 percentage points, bringing a reduction in the cost of servicing government debt.
Thirdly, this morning, together with the Bank of England, we will set up a new scheme, worth up to £40 billion, to ensure that firms operating in wholesale energy markets have the liquidity they need to manage price volatility.
This will stabilise the market and decrease the likelihood that energy retailers need our support, like they did last Winter.
By increasing supply, boosting the economy and increasing liquidity in the market we will significantly reduce the cost to government of this intervention.
As well as dealing with the immediate situation we face, we are also dealing with the root causes.
Energy policy over the past decades has not focused enough on securing supply.
There’s no better example than nuclear, where the UK has not built a single new nuclear reactor in 25 years.
It’s not just about supply. The regulatory structures have failed, exposing the problems of having a price cap applied to the retail but not the wholesale market.
All of this has left us vulnerable to volatile global markets and malign actors in an increasingly geopolitical world.
That is why Putin is exploiting by weaponising energy supplies as part of his illegal war on Ukraine.
So as well as the action we are taking today on bills, we will use the next 2 years to make sure that the United Kingdom is never in this situation again.
I will be launching two reviews.
Firstly, a review of energy regulation to fix the underlying problems. We want a new approach which will address supply and affordability for the long term.
Secondly, we will conduct a review to ensure we deliver net zero by 2050 in a way that is pro-business and pro-growth. This review will be led by my Rt Hon Friend the member for Kingswood.
We are delivering a stable environment that gives investors the confidence to back gas as part of our transition to net zero.
We will end the moratorium on extracting our huge reserves of shale, which could get gas flowing in as soon as six months, where there is local support.
We will launch Great British Nuclear later this month – putting us on the path to deliver up to a quarter of our electricity generation with nuclear by 2050.
As a result of these steps on shale and nuclear and the acceleration of renewables, I am today setting a new ambition for our country.
Far from being dependent on the global energy market and the actions of malign actors, we will make sure the UK a net energy exporter by 2040.
And my Rt Hon Friend the Business Secretary will set out a plan in the next two months to make sure we achieve this.
I know businesses and families are very concerned about how they will get through this winter.
That’s why I felt it was important to act urgently to provide immediate help and support, as well as setting out our plan about how we are going to secure the UK’s future supplies.
This is part of my vision for rebuilding our economy.
Secure energy supply is vital to growth and prosperity. Yet it has been ignored for too long.
I will end the UK’s short-termist approach to energy security and supply once and for all.
That is what I promised on the steps of Downing Street.
Today we are acting decisively to deliver that pledge.
This will help us build a stronger, more resilient and more secure United Kingdom.
I commend this motion to the House.
UK GOVERNMENT BORROWING MORE TO BOLSTER OIL COMPANY PROFITS
Environmental campaigners have reacted to the UK Government plans for an energy price freeze funded by borrowing.
The UK Government will open a new licensing round for the North Sea next week, and is expected to give out over 100 permits for companies to look for more climate-wrecking oil and gas. This is despite climate science and energy experts warning that any new oil and gas projects will push the world well past dangerous climate limits.
Independent advisors have made it clear that increasing UK supply of oil and gas will have almost no impact on UK bills as prices are set by the international market.
Liz Truss also announced that her Government will lift the moratorium on shale gas. Scotland has a de facto ban on fracking.
In the first 6 months of 2022, 5 oil companies made over £80 billion in profits: Shell £16.6bn, BP £12.2bn, Exxonmobil £21.7bn, TotalEnergies £15.2bn, Chevron £14.5bn.
Friends of the Earth Scotland’s head of campaigns Mary Church said: “The impact of measures announced today to stop the immediate rise in household bills is welcome, but the approach taken by the new Prime Minister singularly fails to address the fundamental problems of a broken energy system that serves only to enrich oil company bosses and shareholders.
“The money the UK Government is borrowing will be pumped straight into the coffers of oil companies when it could have helped deliver the transition to clean, reliable renewables. People in the UK are being robbed by fossil fuel companies but instead of making them pay for the harm they are causing, Liz Truss has decided to borrow more money to keep paying the robbers.
“This energy price crisis is being driven by the price of fossil fuels and the only sure fire to prevent this happening again is a rapid and fair transition to renewable energy and a scaling up of energy efficiency.”
+ NORTH SEA OIL & GAS LICENCES “Burning oil and gas is driving the climate emergency that sees tens of millions displaced by floods in Pakistan and has brought extreme heatwaves and drought across the UK. The UK Government is denying the reality of climate change by encouraging companies to seek out more fuel for the fire that is engulfing the world.
“The Scottish Government must be willing to stand up to these reckless plans to expand fossil fuels and hand out more licences for oil and gas companies to explore and drill in the North Sea. Ministers at Holyrood must speak out and use all the tools at their disposal to block any plans to further lock us into the oil and gas that is driving both the climate and cost of living crises.”
+ FRACKING “The move to try reopen and force through fracking is a disgrace. Not only is the industry incredibly harmful in climate terms it also brings with it serious local health and environmental risks. Its laughable to suggest that fracked gas will deliver within 6 months. Communities have already successfully fought and stopped it in Northern Ireland, England and Scotland so wherever this dirty dangerous industry is proposed, it will be opposed once again.”
Commenting on the proposals announced by the government today to support households and businesses with energy bills, TUC General Secretary Frances O’Grady said: “Freezing energy bills this autumn is essential for families and to protect jobs and businesses.
“But the Prime Minister is making the wrong people pay. She should have imposed a much larger windfall tax on profiteering oil and gas giants. And she should have required all firms getting help with energy bills to commit to no lay-offs for the lifetime of the help, to protect livelihoods.
“And it’s not just energy bills soaring – so she needs to do more to help families get through the winter. That means a real plan to get wages rising, a big boost to universal credit, child benefit and pensions, and a massive rollout of home improvements to cut bills. And it’s time to bring energy retail into public ownership to make sure this crisis never happens again.”
The TUC says that the government should set out a programme to make UK living standards more resilient and the UK economy more resistant to a future crisis. This should include:
Increase the windfall tax to a fairer level relative to the excess profits oil and gas firms are making.
Rapid rollout of home energy efficiency and taking the energy retail companies into public ownership – including a new approach to energy pricing with a free band of energy to cover basic lighting, heating, hot water and cooking.
A plan to get pay rising for all workers – including stronger pay bargaining rights so that working people and their unions can make fair pay agreements across whole industries.
Increase the minimum wage to £15 an hour as soon as possible – by returning the UK to normal wage growth and having a more ambitious minimum wage target.
Social security that prevents poverty – universal credit and benefits should be raised to 80 percent of the national living wage, along with a significant boost to support for families with children.
Commenting on the Prime Minister’s decision to end the moratorium on fracking, Tom Fyans, director of campaigns and policy at CPRE, the countryside charity, said: ‘Giving fracking the green light is a hideous mistake.
“If the purpose is to tackle bank busting gas prices, it’s an exercise in futility. Even if we were to go full steam ahead on fracking, which nobody wants, least of all rural communities, it wouldn’t make a dent on the cost of energy anytime soon, or ever.
‘Any move to industrialise the countryside and belch yet more fumes into our carbon-soaked atmosphere will prompt a furious response from local communities, drawn out planning delays and nationwide protests. Hardly a proposal to keep families warm this winter, or lower bills in the future.
‘The new Chancellor got it right in March, when he said fracking “would take up to a decade to extract sufficient volumes — and it would come at a high cost for communities and our precious countryside.” Nothing has changed.
‘Proposals to offer local people discounts on their bills in exchange for environmental destruction on their doorsteps need to be seen for what they are – a feeble attempt to bribe vulnerable rural communities to accept an unpopular, unsafe and polluting process that will destroy their tranquility. Local communities need to make their voices heard loud and clear – they were right to resist before and should continue to do so.
‘The answer to the fossil fuel price crisis is to reduce usage with a mass insulation drive, alongside a clean energy sprint. There has never been a better time to transform our energy infrastructure to ensure a future of abundant green power.
‘Renewables are around nine times cheaper and far quicker to plug in than any alternative. Families facing the biggest drop in living standards on record need renewable energy to become the central pillar of a modernised energy system. And they need it to happen fast.’
A LEADING property association has praised the Government’s package of measures to help those unable to afford rising energy costs.
The National Association Of Property Buyers said the Prime Minister’s “swift and decisive intervention” would help many.
Spokesman Jonathan Rolande said: “Looking at the energy and inflation crisis from the perspective of the property market, we welcome the swift and decisive intervention by the government to help households and businesses with the cost of energy by capping annual expenditure at an average of £2500.
“The impact of higher increases jeopardised so many facets of the economy it was almost impossible to over-exaggerate the terrible consequences there might have been – bankruptcies, unemployment, increased inflation, a house price crash – all were very possible.
“Bills and inflation still look set to rise. Interest rates may well do so too. But the cliff-edge has, for now, been avoided. Businesses and homeowners now have certainty about their budgets and can plan accordingly.
“There will of course be a price to pay, perhaps with higher bills or taxes in the future. But today at least, homeowners, businesses, charities and everyone in the property sector will be breathing a huge sigh of relief.”
Under proposals outlined today, a typical household energy bill will be capped at £2,500 annually until 2024.
The huge support scheme could cost up to £150bn, but Ms Truss refused to put a figure on it, saying “extraordinary times call for extraordinary measures”.
Businesses will get support, with bills capped for six months, a shorter period of protection than many had hoped for.
The help will be for everyone in England, Scotland and Wales with equivalent help for Northern Ireland.
But there are concerns the measures are not targeted enough, with no additional support for the most vulnerable. As a result, millions are still expected to be in fuel poverty this winter.
The energy price cap – the highest amount suppliers are allowed to charge households for every unit of energy they use – had been due to rise to £3,549 in October.
To limit the amount customers’ bills go up by, the government will compensate energy firms for the difference between the wholesale price for gas and electricity they pay and the amount they can charge customers.
The final cost of the scheme will depend on the cost of energy on the international energy markets, which can be extremely volatile.
The money to cover the support will be borrowed by the government, adding to the UK’s already large debt pile.
Lorna Slater, the Scottish Greens MSP for Lothian has welcomed the Scottish Government’s announcement of a national rent freeze and an eviction ban until at least March, which they say will provide “vital stability and support” for tenants across Lothian at a time when many are suffering.
The announcement was made as part of the Programme for Government and will help tenants across Lothianwhere the average monthly rent is £942, which is an increase of 41.7% since 2010.
Scottish Green MSP for Lothian, Lorna Slater said: “With soaring inflation and skyrocketing bills, these are desperate times for tenants all across Scotland. People in Lothian have been hit by increasing rents.
“We are facing the biggest social emergency for decades. The rent freeze and eviction ban that the First Minister announced will provide vital stability and support for tenants across Lothianand beyond at a time when many are suffering.
“It is one of the steps we are taking, in partnership with the Scottish Government, to mitigate the damage being done by Downing Street and the energy companies.”
“Improving tenants’ rights and tackling inequality are at the heart of the cooperation agreement that we agreed with the Scottish Government and must be at the heart of our recovery.”
“Over the course of this parliamentary term Scotland will see the biggest expansion of tenants’ rights since devolution, with more rights for tenants to make a house a home by keeping pets and decorating, better protections from eviction and, perhaps most importantly, a robust system of rent controls.”
Assemble 10:30am: Johnson Terrace, EH1 2PW March off: 11am
Rally at the Scottish Parliament 11.30 – 1pm
The Cost-of-Living Crisis is hitting people across the country. Public service workers in particular are facing a fresh set of real terms pay cuts on top of years of stagnating wages.
The STUC and our affiliated unions are campaigning for a range of urgent actions to stem this crisis, including action to reduce energy bills, support for those of all ages on benefits, rent caps and action to reduce transport costs.
The ultimate responsibility for the Cost-of-Living Crisis sits with the Tories at Westminster. However, this does not mean that the Scottish Government is powerless. It needs to start by funding inflation level pay rises for Scottish public service workers.
Join us, as we demand better for the public service workers of Scotland.
HMRC recently confirmed that HMRC’s first Cost of Living Payment to 1.1 million claimant families receiving tax credits will be made between 2 and 7 September 2022. The first HMRC payments will total around £360 million.
We are now letting you know that we have started to issue these payments.
If tax credits customers believe they are eligible but have not received a £326 payment between the published payment dates, they should wait until 16 September to contact HMRC. This is to allow time for their bank, building society or credit union to process the payment.
The UK Government is offering help for households. Customers should check GOV.UK to find out what cost of living support they could be eligible for.
Background:
Details of HMRC’s first Cost of Living Payment to tax credit-only customers, with quotes and scam warning advice, can be found here:
Cost of Living payments were announced in May 2022. Details of DWP and HMRC payments were also publicised in June,JulyandAugust 2022. The latest payment schedule information is available here.
As well as the Cost of Living Payment, other government support includes:
£400 discount from the UK Government to help with the cost of energy bills from October onwards
£300 Pensioner Cost of Living Payment that will be paid alongside Winter Fuel Payments
£150 Disability Cost of Living Payment from 20 September for those receiving an eligible UK disability benefit.
This is in addition to changes to the Universal Credit taper rate and work allowances worth £1,000 a year on average for 1.7 million working claimants; a rise in the National Living Wage to £9.50 an hour; and a tax cut for around 30 million workers through a rise in National Insurance contribution thresholds.
Since the election of a Tory Government there has been such a severe reduction in living standards all over the country that poverty is being seen as normal.
This Tory attack on working people is deliberate policy. How else could these people be so incompetent and so wicked at the same time?
They are responsible for the continuing rise in prices daily. This autumn there has been a massive government-sponsored rise in the cost of living; the rise in electricity prices was a devastating blow to most people in the country; the price of fuel for cars, etc. has rocketed, giving the fuel suppliers millions of pounds in profits which was promptly given to shareholders while the price of heating and food rose.
The Tories now intend to show how much they don’t care as they have already announced a 10% increases later on this winter.
Yes, this is what the Tories will do and continue to do. All workers must do all they can to resist the Tories.
Charity prepares for influx of dogs being given up as new school year begins
As millions of children across the country return to the classroom after the summer break, Dogs Trust, the UK’s largest dog welfare charity, is encouraging dog owners to head Bark to School with their pups in a bid to reduce the number of dogs potentially being handed into rehoming centres.
The charity, which is already experiencing its busiest period on record in terms of handovers due to the rise in the cost of living, is preparing itself for a possible further spike as families return to a post-holiday juggle of work and school, and their young dogs struggle to cope with being left home alone, causing them to exhibit bad behaviours.
Many pups acquired during the pandemic are now well into adolescence, a tricky stage for any dog owner, particularly those short on time and juggling family life, and many families may feel they are unable to cope with problematic behaviour. Many of these issues can be resolved through basic training and education of dog owners.
Last year on September 6th, the start of the new school year in England, Dogs Trust saw an uplift in enquiries from dog owners looking to rehome their dog. The charity received 163 enquiries to handover their dogs on the first day of term – more than any other day during September – and during the first week of September, saw an uplift in enquiries from struggling owners compared to the previous week.
John-Paul Maguire, Head Coach at Dog School Glasgow, explains:“Whilst the majority of dog owners see their dogs as much-valued family members and have loved spending time with their four-legged friends over the holidays, sadly we do see an uplift in handover enquiries as soon as children go back to school.
“In many cases, dogs are not equipped to deal with this sudden change in routine where they suddenly have to get used to having less attention which means they may start displaying undesirable behaviour.”
Aside from the rise in the cost of living, one of the main reasons dogs are handed over to Dogs Trust is because of behaviour-related issues that may have been prevented or managed with training. Which is why the charity is urging dog owners to go ‘Bark to School” and take action now by signing their puppy or adult dog up to training classes to avoid future problems so they can live happily together.
Dogs Trust runs affordable dog training and puppy classes in locations across the UK. Dogs Trust Dog School classes operate nationwide and are available throughout the year. At these classes, owners will learn how to teach their dogs how to meet and greet other dogs politely, walk nicely on the lead, come back when called, overcome chewing and mouthing as well as understand dog body language and what your dog is trying to tell you.
John-Paul adds: “Dogs Trust is always here to help families who are struggling to care for their dog, for whatever reason, but we hope that anyone that is finding their dog’s behaviour challenging after the summer holidays will consider heading Bark to School and sign up to Dog School classes to help their dog fulfil their potential and make sure families and four-legged friends can continue to live happily together.”
A total of £84 million has been paid to families since it was introduced less than 18 months ago.
The payment of £20 per week, unique to Scotland in the UK, began in February 2021 as a direct measure to tackle child poverty. It provides regular, additional financial support to parents and carers to help with the costs of caring for a child.
As of 30 June 2022, it is estimated that 104,000 children were actively in receipt of Scottish Child Payment and 1.4 million payments have now been made.
By the end of this year the payment will increase to £25 per week and extend to include all eligible children under the age of 16 when it is expected that over 400,000 children will potentially be eligible.
Responding to the latest official statistics on Scottish Child Payment published today Deputy First Minister John Swinney said: “We are taking a number of urgent actions to address the current cost crisis.
“This includes efforts to maximise financial support to those most in need so that they get all the money they are entitled to. The ongoing work to extend eligibility for and increase the value of the Scottish Child Payment is a vital part of these efforts.
“We created our game changing Scottish Child Payment to provide direct financial support to tackle child poverty. Every penny of support is absolutely vital at the moment, which is why we are using our devolved powers and resources to make a difference for as many households as we can.
“We doubled the payment to £20 in April and will increase it to £25 when we extend it to under 16s by the end of the year – a 150% rise in this important benefit which is one of five family benefits we are now delivering.
“The Scottish Government want to support families during these difficult times.”
Scottish Child Payment is part of a wider package of five family payments including: Best Start Grant Best Start Grant Pregnancy and Baby Payment, Best Start Grant Early Learning Payment, Best Start Grant School Age Payment and Best Start Foods
