2017 Feel the Pinch

It is the start of a brand new year and many of us are back into the swing of things. Some might have set New Year resolutions, while others just want to get on with life. However, the financial back-drop for 2017 looks challenging and our household finances are going to ‘feel the pinch’? What do you need to be aware of in 2017? Read on.

Energy is up!

It is predicted that energy providers are expected to raise their electricity prices and we already see EDF Energy will raise its prices by 8.4% from March. So get in now and lock into the best deal. The average UK household is still spending £1,066 on their annual energy bill, which is £221 more than the cheapest fixed deal. Don’t pay over the odds, there are many comparison sites to go to (Some helpful hints here).

Your car will cost you more!

The cost of keeping your car on the road is going to increase.  Insurance premium tax (IPT) is set to rise in June (up to 12%). On top of that, insurers are charging more to cover growing costs (read more here). Also there is a steady increase in fuel prices leaving us to pay more at the pumps.

Train Travel

What can I say, don’t travel on Southern. Putting that aside the cost of train travel continues to increases. A 2.3% price increase kicked in from January. Over the last 9 years train travel has increased a whopping 23.5%. No wonder the UK has the most expensive train travel in Europe. Does the quality of your journeys improve? That’s another blog.

House Prices are slowing down!

Many are betting on continuous growth from their property to free up some cash, or keep hold of it for retirement. Well after years of strong growth, 2017 will see a slow-down and in some areas a flat-line. Those in the rich areas of London are seeing house prices stall and asking prices on houses dropping. The Nationwide Building Society reported average growth for 2016 in London at 3.7%… below the UK average of 4.5%.

Interest rates, aren’t interesting

2017 offers very little in interest rates and no real sign of increases in bank rates. Peoples’ money continues to sit in bank accounts offering very poor bank rates. Someone tell me about a good ISA to invest in? 1.5% for one year, pitiful. The only positive to this is that mortgage rates remain favourable.

Planning your next overseas holiday?

Well, good luck. The sterling ‘slumped’ after the Brexit vote and has not really recovered. Fundamental, oversea trips cost more and you have less money to spend when it comes to exchanging your money.

Your shopping basket

The Brexit-affect hits again! Last year saw great uncertainty but in 2017 we’ll see the impact with higher inflation and goods costing more. The Bank of England now expects inflation to hit 2.7% from it’s 1% rate for 2016.

Time not to be a landlord.

For those thinking of making their millions as a landlord, think again. The 3% Stamp-duty surcharge is now in place (read more here), you can’t apply a straight 10% wear and tear on their rental profits, can’t claim back interest on your mortgage either. Remember you have to check that your tenants have ‘right to rent’ and don’t forget to fit the smoke and carbon monoxide alarms.

Feel for renters

Demand for rental properties continues and in-turn renters are faced with sky-high rents. Some landlords will try to pass on their costs (as outlined above) so expect more increases.

Summary

Unless households can increase their income they are facing a tough 2017 and their wallets will feel the pinch. Unless you have a clear idea of all your outgoings and commit to making savings and being savvy, this year will cost you more. BeeMyMinder provides the secure storage facility so all outgoings can be saved. Receive your reminder and you can take action before it gets too late.

As we continue to move more and more to a ‘mobile-society’ work is underway to make BeeMyMinder even more user-friendly, accessible and of greater value. On the go, instant access and simple snap-shots on bills and policies is due to be released. Watch this space!

Last updated by Nigel Brokenshire at January 26, 2017.