Latest News Headlines
Commercial Credit News
|August's Money Statistics from The Money Charity|
|Tuesday, 09 August 2016|
The Money Statistics August 2016
0.6%: The rate of GDP growth in the second quarter of 2016
5.9%: The average amount in Q1 2016 that households saved from their post-tax income
£2,819: The rise in house prices in May
3.4%: The growth in rental prices in the South East in the year to June
22,503: The number of individual insolvencies in the second quarter of 2016
£3,683: The average consumer credit borrowing per UK adult
£117,162: The amount owed by households with mortgages
4.726 million: The record low number of adult benefit claimants (not in work)
36%: Of households rent privately or socially
Everyday in the UK
The population of the UK grew by an estimated 1,286 people a day between 2014 and 2015.
Net lending to individuals in the UK increased by £173 million a day.
The Government borrowed £260m a day during April 2016 (£3,009 per second).
34 million plastic card purchase transactions were made every day in May 2016, with a total value of £1.57 billion.
The number of people unemployed for over 12 months fell by 301 per day between March and May.
Personal debt in the UK
People in the UK owed £1.484 trillion at the end of June 2016. This is up from £1.444 trillion at the end of June 2015 – an extra £777.90 per UK adult.
Per adult in the UK that’s an average debt of £29,379 in June – around 112.2% of average earnings. This is slightly up from a revised £29,203 a month earlier.
According to the Office for Budget Responsibility’s July 2015 forecast, household debt is predicted to reach £2.551 trillion in Q1 2021. This makes the average household debt £94,481 (assuming that the number of households in the UK remained the same between now and Q1 2021).
Per household, that’s an average consumer credit debt of £6,889 in June, up from a revised £6,833 in May - or £366.15 extra per household over the year.
There were 22,503 individual insolvencies in England and Wales in Q2 2016. This is equivalent to 247 people a day or, one person every 5 minutes 49 seconds. This was up 6.9% on the previous quarter and up 22.4% on the same period a year ago.
Mortgages, rent and housing
Outstanding mortgage lending stood at £1.298 trillion at the end of June. This is up from £1.268 trillion a year earlier.
That means that the estimated average outstanding mortgage for the 11.1m households with mortgage debt was £117,162 in June.
According to the Council of Mortgage Lenders, gross mortgage lending in June totaled an estimated £20.7 billion.
This is 3% higher than June 2015, and up 16% up on May.
The Financial Conduct Authority reports that 68.34% of mortgage lending in Q1 2016 was for 75% or less of a property’s value.
2.72% of lending was for mortgages for over 90% of a property’s value.
The Office of National Statistics say that the average house price for first-time buyers was £220,000 in March 2016, which is an annual increase of 8%.
Spending and Loans
During April 2016 an average of 461 purchases were made in the UK every second using debit and credit cards, based on figures from the UK Cards Association.
According to the AA, it costs 51.60 pence per mile to run a car. This is based on buying a new petrol car for between £13,000 and £18,000, replacing it after 4 years, and averaging 10,000 miles per year.
The average interest rate on credit card lending bearing interest was 18.42% in April. This is 17.92% above the Bank of England Base Rate (0.5%).
British Bankers Association figures show that 57.1% of credit card balances were bearing interest in June 2016.
Savings and Pensions
Around 9.45m (35%) households have no savings, while a further 2.97m (11%) have under £1,500. 68% have less than £10,000 in savings.
The Pensions Regulator estimates that at least 6.411 million employees had joined a pension scheme under auto-enrolment by the end of June 2016.
At the end of November 2015, there were 12.97 million claimants of State Pension, a fall of 12,000 on a year earlier. 43% of claimants were male and 57% female.
Forums International Ltd
Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.
Find out more here.
The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.
CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.
As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.
Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.
GTS Media Ltd
81 Cambridge Road
Registered in England No: 05483197