The Money Stats – July 2019 – “Safe As Houses”…What’s Happening in the UK Market?

Striking Numbers

  • 0.5%: Average increase in house prices in the year to June 2019, according to Nationwide
  • 0.80%: Average interest rate on a cash ISA in May 2019
  • £59,708: Average total debt per UK household in May 2019
  • -5.0%: Change in the average real wage since the pre-crash peak in February 2008
  • 19.99%: Average credit card interest rate in June 2019
  • £2,653: Average credit card debt per household in May 2019
  • £17.93 billion: Public sector net surplus (excluding RBS and Bank of England) in the three months to June 2019
  • 26 years and 9 months: Time to pay off average credit card debt making only the minimum payment each month
  • 2.0%: Increase in Consumer Prices Index in the year to June 2019

Every Day in the UK

  • Net lending to individuals and housing associations in the UK grew by £111 million a day in May 2019.
  • Government debt increased by £197.0 million a day in the year to June 2019.
  • For a lone parent family, the cost of raising a child comes to £27.90 per day.
  • 15 properties were repossessed every day in Q1 2019, or one every 1 hour and 34 minutes.
  • 68 mortgage possession claims and 48 mortgage possession orders were made every day in January to March 2019.

Personal Debt in the UK

  • People in the UK owed £1,640 billion at the end of May 2019. This is up from £1,592 billion at the end of May 2018, an extra £922 per UK adult over the year.
  • The average total debt per household, including mortgages, was £59,708.
  • Per adult in the UK that’s an average debt of £31,099, around 111.3% of average earnings. This is up from a revised £31,034 a month earlier.

Mortgages, Rent and Housing

  • Outstanding mortgage lending stood at £1.423 trillion at the end of May 2019. This is up from £1.380 trillion a year earlier.
  • That means that the estimated average outstanding mortgage for the 10.9 million households with mortgage debt was £130,068 in May 2019.
  • The average mortgage interest rate was 2.43% at the end of May. Based on this, households with mortgages would pay an average of £3,161 in mortgage interest over the year.
  • For new loans, the average mortgage interest rate was 2.09%. Using the latest figures from UK Finance, this means new mortgages would attract an average of £3,490 in interest over the year.
  • According to UK Finance, gross mortgage lending in May 2019 totalled an estimated £21.9 billion, down 0.4% on May 2018.

Savings and Pensions

  • The average interest rate for an instant access savings account, not including bonus interest payments, was 0.43% in May 2019. For a cash ISA, this was 0.80%.
  • In Q1 2019, households saved an average of 4.4% of their post-tax income, including benefits. This compares with 4.1% in Q1 2018. From 2000 to 2015, the savings rate fluctuated mostly in the 6-10% range, with a post-crash peak of 12% in Q3 2009.
  • If someone on the average salary saved 4.4% of their income in an average instant access savings account for a year, they would receive £4.58 in interest after tax. If they saved it in an average cash ISA, they would receive £10.65.

Spending and Loans

  • In the year to May 2019, consumer credit increased by 2.6% according to the Bank of England, while outstanding levels of credit card borrowing grew by 1.8%, significantly down on the rate of growth in early 2018.
  • In Q1 2019, households in the UK spent £111.27 million a day on water, electricity and gas, or £4.05 per household per day. On a seasonally adjusted basis, this was the same as in Q4 2018.
  • The average interest rate on credit card lending bearing interest was 19.99% in June 2019. This is 19.24% above the Bank of England Base Rate of 0.75%.

The Bigger Picture

  • The UK economy grew by 0.3% in the three months to May 2019 compared with the three months from December 2018 to February 2019, according to the latest estimates from the Office of National Statistics.
  • The CPI (Consumer Prices Index) increased by 2.0% in the year to June 2019, unchanged from the year to May 2019.
  • The highest rates of inflation over the 12 months to June 2019 were for communication (4.3%), alcohol and tobacco (3.7%.) and education (3.1%). The lowest was for clothing and footwear (-0.5%.)