Millennials are projected to become the wealthiest generation in history, according to the upcoming annual Wealth Report by Knight Frank. The report states that a significant transfer of wealth and assets will occur in the next 20 years as the silent generation, baby boomers, and older members of Generation X pass away, leaving behind over £2.5 trillion tied up in their homes. Liam Bailey, global head of research at Knight Frank, highlights the profound impact this transfer will have on society, as millennials prioritize environmental sustainability and make different choices in terms of housing and investments.
In other news, Halifax has announced an increase in mortgage rates, reversing its previous cuts from last week. New and remortgaging customers will face higher interest rates on two and five-year fixed deals, with some exceptions for higher loan-to-value levels. Robert Timm, managing director at Sunland Mortgages Ltd, expresses concern over the continuous rate increases and hopes for relief in the upcoming budget.
Bitcoin continues its upward trajectory, reaching $60,000 for the first time since November 2021. The cryptocurrency has experienced a resurgence, driven in part by new investment products in the US that allow indirect exposure to Bitcoin’s price. However, the Financial Conduct Authority reports that 45% of UK cryptocurrency investors suffered losses in the year leading up to April 2022.
Pensioners are urged to check if they are eligible for a £299 cost of living payment, which expires next week. The payment is available to those claiming pension credit and can provide additional support to low-income individuals who have reached state pension age. The Minister for Pensions, Paul Maynard, encourages eligible individuals to use the online pension credit calculator to determine their entitlement.
Data released by London Councils reveals that councils in London have spent £90 million per month on temporary accommodation for homeless individuals in the past year. The significant increase in spending on short-term housing, coupled with a severe shortage of affordable accommodation, has put a strain on local authority budgets. Councils warn of a growing risk of financial instability and potential bankruptcy without additional government support.
Thames Water has reportedly requested permission from the government and regulator Ofwat to increase bills and face lower fines in order to avoid a taxpayer bailout. The water company is facing financial strain due to higher interest rates and its substantial debt. The government states that it prepares for various scenarios across regulated industries, including water.
The CEO of Kellogg’s, Gary Pilnick, faces criticism for suggesting that poor people should eat cereal for dinner to save money. Pilnick made the comments during an interview discussing the company’s efforts to appeal to cost-conscious consumers. The remarks have drawn backlash, with critics arguing that corporations should address affordability issues rather than suggesting inadequate solutions.
Taylor Wimpey, the most valuable UK housebuilder, reports a 49% drop in annual profit and plans to build fewer homes. The company’s shares decline, reflecting concerns over high borrowing costs and inflationary pressures impacting sales rates and profit margins. Wealth manager St James’s Place also experiences a significant drop in share price after setting aside funds for potential client refunds and reducing shareholder payments.
The Local Government Association warns that neighbourhood services in England will face cuts due to budget deficits. Councils anticipate the need for savings in various areas, including waste collection, road repairs, library services, and leisure services. The LGA calls for additional funding in the upcoming budget to mitigate the impact of these cuts.
Overall, millennials’ projected wealth, mortgage rate increases, Bitcoin’s surge, pensioner payments, homelessness challenges, water company financial concerns, Kellogg’s CEO remarks, housebuilder profit decline, and anticipated cuts to neighbourhood services are among the latest developments in the UK’s economic landscape.
