Cost of Living

[Boss Hogg]

Well done to all the posters who have come up with practical changes they have made. This thread isn’t about whose fault it is. Doesn’t matter which side of the fence you are on most decent human beings would expect the elderly to be able to heat their homes etc. This is how we live with it for now. Inflation is expected to fall again in about 12 months and be back to normal levels in about 2 years. I think Covid has taught us we can manage without certain things.

[Lancasterclaret]

Well done to all the posters who have come up with practical changes they have made. This thread isn’t about whose fault it is. Doesn’t matter which side of the fence you are on most decent human beings would expect the elderly to be able to heat their homes etc. This is how we live with it for now. Inflation is expected to fall again in about 12 months and be back to normal levels in about 2 years. I think Covid has taught us we can manage without certain things.

Thing is, if everyone is tightening their belts, then the economy is going to suffer

This is where we need the government to make a lot of correct calls on

[aggi]

I suspect we're going to see a lot more in the way of public sector strikes coming up. The government are indicating that they don't want to give pay rises and a lot of workers are starting to think that maybe some applause a few years ago isn't enough to offset real terms pay cuts.

[dsr]

It wasn’t a restaurant, it was a pub and not a fancy pub at that.

I dare say, but if you're paying £20 for fish and chips it's because you want to pay £20 for fish and chips, not because that's the market price.

[deanothedino]

My rent and council tax are a third of my net monthly pay. I really need a cheaper place.

Conventional wisdom was always your accommodation should be about 35% of your monthly pay, so you're not a million miles off it's just the pressure coming from elsewhere that is making that more difficult now.

[CrosspoolClarets]

Many younger people have no idea how devastating inflation can be.

Interest rate risk people are probably aware of, though most will be on a fix. But the pressure on wages will start in the public sector then will trickle into the private sector and affect prices, compounding the impact of energy and other commodities. The pound is already tanking. Combine these impacts and that new Iphone we may have our eye on could be double the price soon.

Pensioners with savings will find those savings are worth less and less at a time when their energy is doubling. Pensioners tend to use far more gas to give them toasty homes and are being quoted fixes far higher than the standard variable rate. The triple lock is not helping them either.

To combat inflation we need growth but we are still in the pandemic, and have spent a fortune already to try and keep going in it. Hard to see how the UK can take on more debt at these interest rates, such as to allow for tax cuts as a stimulant. Business will go bust because people don’t have cash to spend and unemployment will rise once the current record vacancy rate shakes itself out. Hard not to see it putting millions more into poverty.

The good news is we have a service economy now that can bounce back when inflation eases so the impact may be temporary in one sense but will still be hard and have a lasting effect (such as reducing everyone’s net wealth by x%).

So after all that doom and gloom, the worst of which we haven’t seen yet, what can we do as individuals because the above means we have to take it seriously?

Can’t take on more debt, inflation may erode that debt away but the cash from the loan has to earn more than the interest rate, that seems unlikely. I think it’s the basics - ensure our jobs are still there if we can, work out our spending, start looking at food receipts to break down what we spend where, cut down on extravagance, defer home improvements, holiday at home somewhere basic. I really am struggling as regards practical ideas to help people who need it. It may even need things like downsizing, gloomy though that is.

[deanothedino]

Of course the govt may try to manipulate prices which would be a mistake similar to this dumb windfall tax on energy companies that will have all sorts of unintended consequences, lack of investment being one of them.

Several of the big energy companies stated investment wouldn't be impacted and they were saying that when government was absolutely ruling out a windfall tax.

[Burnley1989]

I do think holidays in the UK is a good suggestion as the UK economy needs it, and if you get the weather and location right, I'd argue you'll enjoy it far more than some Spanish holiday resort.

[CombatClaret]

so what i have gathered is that some posters on this thread would rather put their health at risk by eating less food and by turning their heating off rather than give up their internet for a few months as they claim that is an essential these days. jesus wept. no wonder our country is in a mess.

I expect you are deliberately provocative with your opinion because it's so ridiculous but ok...

Most people will be on 18-24 month broadband contracts so they can't "give up their internet for a few months" and to terminate their contract would see them forced to pay upfront early termination fees equivalent to the remaining months.

So pay £100s up front to deny yourself a near essential tool for communication, work, productivity, recreation, cheaper purchasing etc.
Are you Martin Lewis?

[ClaretAndJew]

Conventional wisdom was always your accommodation should be about 35% of your monthly pay, so you're not a million miles off it's just the pressure coming from elsewhere that is making that more difficult now.

Very fair point.

[Billy Balfour]

Slashing fuel duty and VAT would help everyone - it would lower inflation across the board. Can't afford it? Well, the govt seems to be throwing money around like it's water. £1,200 for those on UC and I think we all get £400 off our winter energy bills.


There's also talk of allowing those on Housing Henefits to be able to use that money to pay off a mortgage. No lender will touch this in most cases, so the govt will end up underwriting the mortgages. Does anyone remember subprime? We don't learn, do we.

Want to help renters? Well, build more social housing and don't sell them off because we all know that they won't be replaced like-for-like. The housing associations cannot afford to build a house for every one they are forced to sell. It's just bull and the govt knows this.

As I said, they spend or promise money when they want votes and good headlines, so they really could slash fuel duty. It would help everyone, regardless of car ownership. After all, we all eat food and transport costs are going through the roof.

[distortiondave]

Holidaying in England is a fine idea in principle, but our public transport system is pretty grim so getting to places easily, cheaply and conveniently can be tricky if you don't (want to) drive.

My dad wants to go to Cornwall at some point, but two tickets from Preston to St Ives on four different trains is £900 return.

Going to Morecambe or Lytham for a weekend is great, and my parents love that, but for a 'proper' holiday it's often far more cost effective to go abroad.

[claret2018]

The problem with cutting fuel duty and or vat on fuel is that petrol stations will inevitably gobble that up as extra profit without passing the saving on to the consumer as we’ve already seen

[kentonclaret]

Pensioners with savings will find those savings are worth less and less at a time when their energy is doubling. Pensioners tend to use far more gas to give them toasty homes and are being quoted fixes far higher than the standard variable rate. The triple lock is not helping them either.

At least the government have promised to reinstate the triple lock for 2023, so if inflation is around the 10% mark in September pensioners can expect an increase of roughly £18.50 a week. Not only are savings being eroded by inflation but low interest rates over several years have also had a detrimental impact. Those drawing the State Pension will also receive an additional £300 on top of the current £200 Winter Fuel payment.

[Lancasterclaret]

At least the government have promised to reinstate the triple lock for 2023, so if inflation is around the 10% mark in September pensioners can expect an increase of roughly £18.50 a week. Not only are savings being eroded by inflation but low interest rates over several years have also had a detrimental impact. Those drawing the State Pension will also receive an additional £300 on top of the current £200 Winter Fuel payment.

I'm glad I'm not hanging my hopes in a government promise mate!

[dsr]

Holidaying in England is a fine idea in principle, but our public transport system is pretty grim so getting to places easily, cheaply and conveniently can be tricky if you don't (want to) drive.

My dad wants to go to Cornwall at some point, but two tickets from Preston to St Ives on four different trains is £900 return.

Going to Morecambe or Lytham for a weekend is great, and my parents love that, but for a 'proper' holiday it's often far more cost effective to go abroad.

Suggest he tries Alfa travel. They do a week dinner bed and breakfast with excursions and travel included, for less than £900 for 2.

[claretonthecoast1882]

Holidaying in England is a fine idea in principle, but our public transport system is pretty grim so getting to places easily, cheaply and conveniently can be tricky if you don't (want to) drive.

My dad wants to go to Cornwall at some point, but two tickets from Preston to St Ives on four different trains is £900 return.

Going to Morecambe or Lytham for a weekend is great, and my parents love that, but for a 'proper' holiday it's often far more cost effective to go abroad.

Another option to consider is that you can fly Manchester to Newquay with easyjet and was around £40 each way when we looked previously.

[Lowbankclaret]

Slashing fuel duty and VAT would help everyone - it would lower inflation across the board. Can't afford it? Well, the govt seems to be throwing money around like it's water. £1,200 for those on UC and I think we all get £400 off our winter energy bills.


There's also talk of allowing those on Housing Henefits to be able to use that money to pay off a mortgage. No lender will touch this in most cases, so the govt will end up underwriting the mortgages. Does anyone remember subprime? We don't learn, do we.

Want to help renters? Well, build more social housing and don't sell them off because we all know that they won't be replaced like-for-like. The housing associations cannot afford to build a house for every one they are forced to sell. It's just bull and the govt knows this.

As I said, they spend or promise money when they want votes and good headlines, so they really could slash fuel duty. It would help everyone, regardless of car ownership. After all, we all eat food and transport costs are going through the roof.

The problem for renters, is the big problems the Gov have created for Landlords. A good friend of mine had 4 houses and now has 3 , soon to be 2.
Main big problem, the change from taxing profits to taxing turnover was massive.
In the past if he spent £5000 on repairs he didn’t pay tax on that £5000. Now you pay tax on it.

He went from making 10-12% profit a year on invested money to now earning 4%-5% on money invested.

Then there is Gov forcing them to improve insulation, some saying it could be £15k per house.

Next is the no fault eviction, all landlords use it because it’s the quickest way to evict a tenant. So if a tenant misses two payments they use no fault eviction. Other methods can twice as long.

He tells me he could end up with a tenant he cannot get out for 6 months, that would mean he would make a loss for the year and still pay tax on his turn over.

That’s why landlords are putting up rents, trying to make a good profit.

Others are just selling up and investing the money elsewhere.

[Devils_Advocate]

As a private landlord you pay tax on profits not revenue. The expenses must meet the allowable criteria so making house improvements is excluded but there are lots of expenses you can offset against your revenue before paying tax. Here is a list of the expenses you are allowed to deduct and not pay tax on

letting agents’ fees
legal fees for lets of a year or less, or for renewing a lease for less than 50 years
accountants’ fees
buildings and contents insurance
maintenance and repairs to the property (but not improvements)
utility bills, like gas, water and electricity
rent, ground rent, service charges
Council Tax
services you pay for, like cleaning or gardening
other direct costs of letting the property, like phone calls, stationery and advertising

We don't need policies to make it easier for landlords but we need much more affordable housing so tenants aren't at the mercy of the landlords.

I have bought property as an investment for the future but I understand that I am a small part of the problem as people like myself buying up houses to make profit and invest in the future does nothing to help the people who can't get on the property ladder now and helps drive up property prices and rental costs

[GodIsADeeJay81]

With an estimated 4 million homes owned and rented out by private landlords, something needs to be done to reduce those numbers because they're helping to push up house prices.

Dump 4 million homes onto the open market and prices would soon drop to a reasonable level.

[Billy Balfour]

The problem with cutting fuel duty and or vat on fuel is that petrol stations will inevitably gobble that up as extra profit without passing the saving on to the consumer as we’ve already seen

This is easily solved. The govt fast-tracks legislation through parliament that makes it illegal not to pass on the cut in duty/VAT to the consumer.

[distortiondave]

Another option to consider is that you can fly Manchester to Newquay with easyjet and was around £40 each way when we looked previously.

There's no way my dad will fly from England to England unless it's in a hot air balloon or dirigible.

[dsr]

With an estimated 4 million homes owned and rented out by private landlords, something needs to be done to reduce those numbers because they're helping to push up house prices.

Dump 4 million homes onto the open market and prices would soon drop to a reasonable level.

If you're dumping those 4 million houses onto the open market, then you're also dumping those 4 million tenants (plus families) onto the streets. You can't increase the housing stock by turning a rented home into a owner-occupied home.

[claretonthecoast1882]

There's no way my dad will fly from England to England unless it's in a hot air balloon or dirigible.

in that case there is also the option of a hot air balloon

[claret2018]

This is easily solved. The govt fast-tracks legislation through parliament that makes it illegal not to pass on the cut in duty/VAT to the consumer.

Nice idea but couldn’t possibly work. The government can’t dictate what price a business sells something for.

Although interestingly it does happen with cigarettes in some countries. Not sure it would work with fuel as different businesses have different costs/profit margins.

[aggi]

Nice idea but couldn’t possibly work. The government can’t dictate what price a business sells something for.

Although interestingly it does happen with cigarettes in some countries. Not sure it would work with fuel as different businesses have different costs/profit margins.

They probably can now post-Brexit.

[deanothedino]

Nice idea but couldn’t possibly work. The government can’t dictate what price a business sells something for.

Although interestingly it does happen with cigarettes in some countries. Not sure it would work with fuel as different businesses have different costs/profit margins.

Scotland has minimum pricing on alcohol. The UK in general has some max profit defence contracts. I don’t think it’s beyond their ability to make a cap on petrol station margins.

[Billy Balfour]

Nice idea but couldn’t possibly work. The government can’t dictate what price a business sells something for.

Quite right too. But we are talking about cutting the tax percentage we pay on fuel. This has nothing to do with their cost or profit margins. For instance, VAT is on most things we buy, however, the govt doesn't regulate the prices of those goods and services, only the VAT rate at 20%.

[GodIsADeeJay81]

If you're dumping those 4 million houses onto the open market, then you're also dumping those 4 million tenants (plus families) onto the streets. You can't increase the housing stock by turning a rented home into a owner-occupied home.

You're giving the tenants the option to buy the homes they're in, you're dropping 4 million homes on to the market and taking 4 million buyers right out of it.
There would be a huge drop in house prices and the pressure on the market would be alleviated.

We don't need private landlords owning so many homes, it isn't right and shouldn't be allowed.
We even have new build homes being built specifically for rent, not to be sold to first time buyers etc.

[Nori1958]

As long as I can have 5 foreign holidays a year and a new car all is well

[dsr]

You're giving the tenants the option to buy the homes they're in, you're dropping 4 million homes on to the market and taking 4 million buyers right out of it.
There would be a huge drop in house prices and the pressure on the market would be alleviated.

We don't need private landlords owning so many homes, it isn't right and shouldn't be allowed.
We even have new build homes being built specifically for rent, not to be sold to first time buyers etc.

And similarly, presumably, you don't want tenants living in privately rented houses and that shouldn't be allowed either.

If there are not enough houses, then changing a house descriptor from "rental property" to "owned property" does not mean it becomes two houses. Either Mr Smith continues to live there so the number of buyers and available properties is unchanged, or Mr Smith moves out so the number of buyers and available properties both go up by 1.

[Devils_Advocate]

When properties come on the market they are sought after by people who dont need properties (landlords) as well as those that need them. This pushes prices up as Landlords know they can make a profit and can often outbid first time buyers and then charge them a fortune in rent

To use an exaggerated example if no one could own more than one home then the demand for buying the property (this is different to how many people need a home) would reduce and the people in the market who actually need a place to live would not have the money to spend on a property so prices would come down as the market naturally readjusted itself

There would also be less demand on new housing developments to keep flooding the market and it would be far easier to build up a housing stock of government and local authority owned and managed property's where the object of renting them would be to give people unable to buy a home affordable rents rather than landlords looking to make profits

There is not an easy immediate solution because this cannot be changed overnight but if you think that private landlords dont drive up property prices and rental cost and that the current way the housing market works and is allowed to run doesnt make it extremely difficult for the young and the less financially well off then you just dont have any clue about this subject whatsoever.

[Dy1geo]

I went to a conference and it was amazing when the speaker pointed out that the “full employment” we have now is an issue in that we have more job vacancies that people that can fill them and that the economy is unbalanced and leading to stagflation. He actually said when the unemployment numbers start to rise over in the US and here the markets will start to rise.

He reckoned inflation will peak around October and the Bank of England rate will be 2% in December and 3% at the end of next year and inflation will be sticking at around 4%.

He pointed out that after 2 years of net savings in banks we are seeing outflows but a lot of people the top 3 quartiles have managed to save a substantial amount over the last two years and will be giving that back.

I tend to agree that for many it will mean cutting back from what we were used to but I feel very sorry for the bottom quartile and they are the ones the Govt should be doing everything they can to help out.

[GodIsADeeJay81]

And similarly, presumably, you don't want tenants living in privately rented houses and that shouldn't be allowed either.

If there are not enough houses, then changing a house descriptor from "rental property" to "owned property" does not mean it becomes two houses. Either Mr Smith continues to live there so the number of buyers and available properties is unchanged, or Mr Smith moves out so the number of buyers and available properties both go up by 1.

What I'm saying is if you've suddenly got an extra 4 million homes available for sale to the people who've been renting them whilst trying to save money to buy a new build then the market changes massively.

The people wouldn't need to move, they can buy the house they're in.

The reason we don't have enough houses is threefold -

Landlords buying up as many as they can to then rent out

Council houses being sold at a knockdown price to long term tenants

New houses aren't being built fast enough.


The first issue can be sorted, start forcing landlords to sell off their stock.

The 2nd one can be stopped, because we also have the issue of people living in council homes that are bigger than their current needs, so they need to be downgraded so the larger homes then become available for families on the waiting list, which stands at a approx 1.5 million and growing.
Yes I know people have an emotional attachment to the houses more often than not, but it isn't their house, it's social housing and councils/social housing companies should be more on the ball with their properties and ensure they're allocated more efficiently.

The third issue could potentially be sped up, but the house builders don't want to be quicker because at present they can dictate prices by holding onto parcels of land for long periods of time to prevent other companies buying the land to build on etc.
They want to maximize the money they get for their poorly built new homes and they know that people are desperate to get on the housing ladder so will pay over the odds of they can, whilst also using the part buy part rent schemes ( thats a con btw)

[Swizzlestick]

The problem for renters, is the big problems the Gov have created for Landlords. A good friend of mine had 4 houses and now has 3 , soon to be 2.
Main big problem, the change from taxing profits to taxing turnover was massive.
In the past if he spent £5000 on repairs he didn’t pay tax on that £5000. Now you pay tax on it.

None of this is true. The only major change has been in relation to mortgage interest - this was previously a wholly allowable expense but now isn’t (but you can still claim in the form of a tax reducer at 20%).

It’s not entirely surprising to learn landlords are willing to lie to their friends about their financial responsibilities just as much as they are to everybody else.

[ClaretinJapan]

Quite a few folk (including myself and lady wife) actually
saved a fair amount during Covid. We didn't do much if any socialising or
go out anywhere nor on holiday.
I was quite surprised at how much less we were spending.

We were comfortably off before Covid
and although we're slowly beginning to do some of the things
we used to do prior to Covid we're still not used up all that we saved.

So we're lucky really compared to most but we'll need to
tighten our belts in the Autumn when the next hike in energy prices hits us.

And I feel really sorry for those who are already struggling as I know many are
and where possible we shall do all we can to help them.

But I fear it's going to get considerably worse over the next year or so
as can't see fuel prices dropping much or quickly nor can I see the government
reducing fuel duty or VAT by any significant amount.
Nor can I see the war in Ukraine ending soon either.
But can see inflation getting even higher.

There's little or no good news on cost of living.
But for some it'll be tightening the belt by a notch or two.
But I fear for a lot of folk there's not many, if any notches left.

I'm quite into poetry, nice free verse there. Could use more assonance though.

[jrgbfc]

You're giving the tenants the option to buy the homes they're in, you're dropping 4 million homes on to the market and taking 4 million buyers right out of it.
There would be a huge drop in house prices and the pressure on the market would be alleviated.

We don't need private landlords owning so many homes, it isn't right and shouldn't be allowed.
We even have new build homes being built specifically for rent, not to be sold to first time buyers etc.

Agree with that last part. I think people who want to own more than one property should be made to pay a fortune in tax.

[fatboy47]

There's a mountain of envy flying around this thread.

I rent out a number of properties in Somerset..and in my view I provide an essential service to the community.All properties are of a high standard, well maintained with rents kept only negligbly above inflation rates.

We live in a free market economy not a authoritarian state.

Witchhunts against private landlords are simply turning attention away from the real problems caused by low housebuilding figures.

[ksrclaret]

There's a mountain of envy flying around this thread.

I rent out a number of properties in Somerset..and in my view I provide an essential service to the community.All properties are of a high standard, well maintained with rents kept only negligbly above inflation rates.

We live in a free market economy not a authoritarian state.

Witchhunts against private landlords are simply turning attention away from the real problems caused by low housebuilding figures.

Whatever you need to tell yourself…

[Quickenthetempo]

What happens in a town like Burnley where some of the housing stock is of poor quality?

First time buyers haven't the finance to do it up for living in and landlords aren't allowed to buy?

There's no easy solution and every town will need a different balance in renters/owners.

[GodIsADeeJay81]

What happens in a town like Burnley where some of the housing stock is of poor quality?

First time buyers haven't the finance to do it up for living in and landlords aren't allowed to buy?

There's no easy solution and every town will need a different balance in renters/owners.

Let the council/housing associations have them, they can then refurbish them and use them for social housing.

[Devils_Advocate]

Its not just the balance between renters and owners but the balance between private lets and housing association lets. We build plenty of houses each year in this country but the vast majority is through private enterprise and not HA's

[Foreverly Claret]

It's not the big increases that surprise me..they're usually well documented in the media . Its the many little things .I was doing our shopping in Tesco yesterday and I usually buy an apple pie .Last week I paid £ 1.25 for the pleasure...yesterday it was £ 1.50..that's a 20% increase in a week ! My old dad used to say you can only spend a £ once which is not particularly profound but continuing the pie analogy , that's £ 0.25 that I won't be spending somewhere else and if you extrapolate that the implications for the economy are stark...some businesses will suffer badly .Before I get an avalanche of criticism I really do appreciate that in the current circumstances there are many people who would be very grateful if they could afford a pie anyway but the wider point is the overall impact on the economy .It's scary.

[fatboy47]

A lot of people looking for Socialist solutions in a country that voted for unfettered capitalism.

[Quickenthetempo]

Let the council/housing associations have them, they can then refurbish them and use them for social housing.

I don't think the council have the budget or capabilities to take houses on anymore, so use a private company to deal with social houses.
We use Calico in the Burnley area.

In Padiham, we have had social housing built by Calico in recent years and made private house builders provide houses to Calico.
The big downfall to that, is residents who have moved in haven't been from the town. They have come from all over neighbouring towns.

They wouldn't uproot and move towns if they could private rent.

[deanothedino]

There's a mountain of envy flying around this thread.

I rent out a number of properties in Somerset..and in my view I provide an essential service to the community.All properties are of a high standard, well maintained with rents kept only negligbly above inflation rates.

We live in a free market economy not a authoritarian state.

Witchhunts against private landlords are simply turning attention away from the real problems caused by low housebuilding figures.

Not every private landlord is bad, but if you can’t see that there’s a significant number who are only in it for themselves and provide poor quality housing, or refuse to do the minimum level of maintenance because they don’t care for their tenants, then you are kidding yourself.

[Quickenthetempo]

Not every private landlord is bad, but if you can’t see that there’s a significant number who are only in it for themselves and provide poor quality housing, or refuse to do the minimum level of maintenance because they don’t care for their tenants, then you are kidding yourself.

Unfortunately our politicians refused to vote through all rented houses had to be of a liveable standard.

[basil6345789]

I’m trying harder than ever to persuade family and friends not to vote for the Tories ever again

Isn't all this China's doing?

[Paul Waine]

Exciting times.

Hi 47, I thought about it for a while, then decided your post deserved a "like." Yes, there are similarities in seeking to tackle financial challenges as we are experiencing following the end of the pandemic and the challenges BFC faces in meeting the challenges of maintaining a football club in the Premier League and the Championship.

UTC

[GodIsADeeJay81]

I don't think the council have the budget or capabilities to take houses on anymore, so use a private company to deal with social houses.
We use Calico in the Burnley area.

In Padiham, we have had social housing built by Calico in recent years and made private house builders provide houses to Calico.
The big downfall to that, is residents who have moved in haven't been from the town. They have come from all over neighbouring towns.

They wouldn't uproot and move towns if they could private rent.

That's why I said housing companies and not just councils.

We have a similar set up here in Oxfordshire and also next door in Berkshire.
Every lot of new builds round here has to have X amount made available for social housing as part of the deal.
Where my ex lives with our daughter is one such house, she was the first tenant to move in (she only got it because others didn't want it because it wasn't on a bus route and a mile or so from any shops )

In regards to people moving towns, I met a woman from London who'd been bribed to move out of London by her local council, to free up social housing there and her family picked Burnley.
That was nearly 20yrs ago and they're still in the area last time I saw her.
This trick has been tried again and it made the national news recently because people didn't want to go live in Stoke etc, they wanted to remain in London.