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According to research from uSwitch.com, the recession has resulted in an increasing number of energy efficient households, thus positively affecting the environment. In fact, 78 percent of those surveyed concurred with being more energy efficient now than this time last year. For 36 percent, this has been the direct result of attempts to keep costs down rather than having concerns over ‘green’ issues, which are only the primary motivation for 9 percent of respondents.

Energy saving methods were found to be varied, with 91 percent switching off lights when they are no longer needed and 79 percent refraining from filling their kettles with more water than is necessary. In addition, 78 percent only use their washing machines and dishwashers with a full load, and 69 percent are now completely switching off electrical equipment after use as opposed to leaving it on standby.

Despite consumers now incorporating such energy saving measures into their daily routines, their reluctance to make longer-term financial investments remains apparent. At a time when budgets are generally tighter, 64 percent of respondents without solid wall insulation in their home admitted that they cannot afford it. It is a similar story for ‘energy saving recommended’ white goods. 60 percent of respondents realise that these would be cost effective in the long run but 35 percent would ultimately use price tags as a basis for deciding whether or not to make the purchase.

It would not seem as though a disbelief in the benefits of energy efficiency is to blame, judging by the fact that less than 1 percent of respondents are of the opinion that energy efficient appliances do not have any significant impact on actual usage. However, uSwitch report that costs do not have to be particularly great for consumers to be deterred from going green. 29 percent would not pay more for a fully renewable electricity plan and, of the 31 percent that would pay more, 17 percent would only pay up to an additional £20 per year.

Director of Consumer Policy at uSwitch.com, Ann Robinson, commented: “This is a double-edged sword. Consumers are reacting to the recession and the high cost of energy by cutting back on energy usage. They are taking simple steps, but they are not buying into the major energy efficiency measures because they are worried about the costs involved, are confused about what is available and don’t understand the savings they could make. As a result they could miss out on the longer-term savings to be made from investing in making their homes more energy efficient. This caution is natural, but it smacks of a missed opportunity.

“The Government will also be concerned as the cost of going green could stop consumers getting behind its drive to make Britain’s households more energy efficient and reduce carbon emissions. The Government should work with the energy industry and particularly with individual suppliers to ensure that consumers are getting the information and reassurance they clearly need to make them feel confident about making the investment.

“Consumers who are worried about costs can cut their energy bills by ensuring they are paying the lowest possible price for their energy and learning to use less of it. Move to dual fuel, pay by direct debit and sign up to an online energy plan to save up to £350 on your annual household energy bill. Some people might then find it possible to invest money in major energy efficiency measures. Under the Carbon Emission Reduction Targets (CERT) scheme we are all paying an extra £19 a year on gas and £18 on electricity to provide funding to support energy efficiency measures. Speak to your supplier to find out if you can benefit from this too.”

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Homeowners that would like to invest in long-term energy saving measures, and who are looking for the funds to pay for them, could consider taking out a home improvement loan to fund the desired work. A home improvement loan could facilitate an array of projects from solid wall insulation to the replacement of draughty doors and windows. A home improvement loan could also be used to fund solar panels which could be introduced to the property’s exterior so as to capitalise on the sun’s natural power.

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The recession(newpression) is not finished with us yet:

Foreclosure Woes Mount for Those With Good Credit: A record 12 percent of homeowners with a mortgage are behind on their payments or in foreclosure as the housing crisis spreads to borrowers with good credit. And the wave of foreclosures isn't expected to crest until the end of next year, the Mortgage Bankers Association said Thursday. The foreclosure rate on prime fixed-rate loans doubled in the last year, and now represents the largest share of new foreclosures. Nearly 6 percent of fixed-rate mortgages to borrowers with good credit were in the foreclosure process. At the same time, almost half of all adjustable-rate loans made to borrowers with shaky credit were past due or in foreclosure.

The worst of the trouble continues to be centered in California, Nevada, Arizona and Florida, which accounted for 46 percent of new foreclosures in the country. There were no signs of improvement. The pain, however, is spreading throughout the country as job losses take their toll. The number of newly laid off people requesting jobless benefits fell last week, the government said Thursday, but the number of people receiving unemployment benefits was the highest on record. These borrowers are harder for lenders to help with loan modifications.

President Barack Obama's recent loan modification and refinancing plan might stem some foreclosures, but not enough to significantly alter the crisis.
"It may be too much to say that numbers will fall because of the plan. It's more correct to say that the numbers won't be as high," said Jay Brinkmann, chief economist for the Mortgage Bankers Association.

The half term holidays are upon us. Soon families will be wondering what activities they can enjoy that will not cost too much. But it’s even better if the activities are free. We always feel that we should always have lots of money to spend on going out. With this guide you won’t need it. Not when we have the outdoors, friends, and our imagination.

• The library

Libraries offer much more besides books. Go there for talks, DVDs, music and even free or discounted internet access. If you’re lucky they might even have exhibitions and poetry evenings. Find a public library in your area.

• If you go down to the woods….

The UK has plenty of beautiful walks that the entire family can enjoy. There are trails for all different skill levels and you could even find a hiking trail that’s best suited to wet weather.

You could also create and map your own walks or explore parts of your local area that you’ve left previously undiscovered.

• A picnic

Pack a picnic basket and enjoy. You need not even go far, the local park is as good as anywhere. Find a picnic spot, enjoy the scenery and try to squeeze in some people watching and maybe even a game of rounders.

• A crafting day

Get the children to create their own gifts and haberdashery. This could keep them entertained for hours – days even – and they’ll have something to show their friends when they go back to school.

• Cook or bake

This doesn’t have to be an expensive experiment. Much will depend on the children’s age and skill level. They could help you to bake scones, muffins or even cake. Or they could bake it themselves. The BBC website has lots of ideas for cooking with children.

• Museums and galleries

Find a museum in your area and let them learn about life in the 19th century or about the Art Deco period

• The beach

Find a beach close by and take sporting equipment with you. Or find out whether you can rent what you need.

• Cinema

Take your little ones to see films at the local cinema or attend one of the many film festivals that take place throughout the year. Many of the film festivals offer independent films for free or for a small amount. Libraries also offer DVDs and this could be another free form of entertainment – or education if they’re keen on watching documentaries.

• Play with friends

Let them play with their friends, cousins and the neighbours’ children. It’ll strengthen their social skills, cognitive learning and keep them out of trouble … we hope!

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According to uSwitch.com, their regional recession index has revealed that Britain’s rural and industrial areas have been subject to the greatest impact of the recession. By examining salaries, levels of unemployment, property prices and council tax within 98 of the biggest local authorities over the past 2 years, several findings came to light.

The area to have suffered the most significant blow is reported to be Swindon, where house prices have fallen by 16 percent and unemployment has increased by 197 percent in the past year. In contrast the national unemployment level stands at 6.7 percent. The reason behind the 197 percent increase in unemployment in Swindon is down to the closure of numerable local manufacturing firms, thus resulting in the most significant number of people to be claiming job seekers allowance in the country.

Rhondda was also found to be adversely affected with the number of people claiming job seekers allowance rising by 105 percent. Combined with council tax increases of 5 percent and a 13.5 percent drop in house prices, this area of the Welsh Valleys would not appear to be thriving.

On the opposite end of the scale, and described as ‘recession proof’, is Brent where a 12 percent salary rise is recorded to have taken earnings from £22,506 to £25,220. The area is also home to a below-average increase in claims for job seekers allowance. In addition, Brent has seen council tax increases of just 1.9 percent compared to the average increase of 2.5 percent.

Where recession proof locations are concerned, in joint second place came Sefton and Enfield. The former experienced a 7 percent increase in average earnings, combined with just 46 percent more claims for job seekers allowance which is 20 percent less than the average nationwide increase.

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Homeowners who have found their living costs increase with rising council tax bills and increased energy prices, could consider reviewing their finances. If a large proportion of monthly income is being used to make monthly credit card and hire purchase payments, then they could consider grouping these debts together with a debt consolidation loan. A debt consolidation loan will put all debts into one, so rather than having multiple bills for credit cards, store cards and hire purchase agreements, homeowners will just get one bill. What’s more, with a debt consolidation loan, they will know the exact amount and date payments need to be made each month. It should be remembered that consolidating debt may increase the amount you pay back overall and extend the repayment period of your debts.

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According to moneysupermarket.com, workers that are not able to stay in credit are now going into their overdrafts 20 days after pay day – an entire week earlier than in 2007.

Two years ago the same price comparison website conducted similar research and it was found that workers were then avoiding going into the red for 27 days following pay day. When comparing this with the present figure of 20 days, it becomes apparent that people are currently struggling somewhat with their finances.

During the past 12 months, over 50 percent of the workforce became overdrawn on at least one occasion, whilst for 17 percent this was a common occurrence. The latter marks a 10 percent increase on 2007.

Head of banking at moneysupermarket.com, Kevin Mountford, commented: “The 20th is now the date each month that Britain goes overdrawn.

“These findings are a little disconcerting, especially given the direction interest rates have been heading lately.

“We have found the difference between overdraft rates and in-credit rates has increased by nearly four percentage points over the past year - with it now averaging 12.4 per cent. This is most definitely a time for prudence with your current account.

“Your overdraft can be a murky place to reside - especially if you are close to the edge of your authorised limit. Unauthorised rates are higher and have sharp penalty fees of up to £35 for breaching your agreement.
“The Office of Fair Trading has been investigating current accounts for some time now, but many banks still levy these hefty charges for exceeding your limit.

“People who continually find themselves in the red should look closely at their spending to see where they can save. Anyone who fears they may exceed their overdraft needs to speak to their bank to see about temporarily increasing their limit to avoid being stung by unauthorised charges.

“If, like 53 per cent of the population, you are often in the red, you need look out for the best overdraft deals, such as from the likes of Abbey and Alliance & Leicester.”

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Homeowners whose finances are tight may wish to consider taking out a secured loan. Such a finance option could be used to consolidate existing debts, such as credit cards, into one manageable monthly repayment as opposed to juggling several. In addition, monthly outgoings could also be reduced. When taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.

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According to the first Halifax review of the affordability of housing in the UK, there has been a significant improvement since mid 2007. This conclusion was drawn further to an assessment of home affordability within 407 local authorities, including 32 London boroughs. The assessment was conducted by means of an ‘affordability calculation’, which measures the level of difficulty faced by a prospective home buyer, and several findings came to light.

The amount of disposable income that is dedicated to mortgage payments has considerably fallen during the course of the past 18 months. The typical mortgage payment for a new borrower in the third quarter of 2007 stood at 48 percent of their average disposable earnings. However, this reduced to 31 percent in the first quarter of 2009. Mortgage payments in relation to earnings are now less than the long-term average of 37 percent, which was recorded over a period of 25 years.

Since the third quarter of 2007 affordability has improved within each of the 12 regions, with Northern Ireland and London seeing the most significant reductions in average mortgage payments as a proportion of average disposable earnings. The former experienced a drop from 63 percent to 37 percent and the latter experienced a drop of 56 percent to 34 percent. The areas in which mortgage payments account for the most minimal proportion of disposable earnings are Yorkshire & the Humber and Scotland at 26 percent.

All UK local authorities have been subject to improved levels of affordability since mid 2007 as a result of falling house prices and reduced mortgage rates. In fact, between the third quarter of 2007 and the first quarter of 2009, there has been a fall in mortgage payments as a proportion of average earnings within 217 of the 407 local authorities. This reduction has been recorded as being at least 25 percent, whereas for 6 local authorities it has been recorded as being a minimum of 40 percent.

The local authority to have experienced the greatest improvement in affordability since the third quarter of 2007 has been East Hampshire. In this area, mortgage payments as a proportion of average earnings have gone from 62 percent down to 35 percent. Following East Hampshire, Ards in Northern Ireland, West Devon and Chiltern have encountered the next greatest improvements.

In terms of the most affordable local authority in the UK, this is noted as being Copeland in Cumbria where typical mortgage payments in the first quarter of 2009 stood at 22 percent of average earnings. In second place at 23 percent came the Shetland Islands and Renfrewshire in Scotland. On the opposite end of the scale, the least affordable local authority in the UK is North Cornwall at 63 percent. Second to this is South Buckinghamshire at 62 percent, and in third place is Guildford at 58 percent. Local authorities in this category tend to be commuter areas or those in which a large number of second homeowners reside.

Housing economist at Halifax, Martin Ellis, commented: “There has been a marked improvement in housing affordability across the UK over the past 18 months. The significant reduction in mortgage payments paid by a typical homebuyer has resulted largely from the combination of the decline in house prices and the cut in interest rates to record lows. As a result, housing is at its most affordable for almost seven years.

Notably, mortgage payments for a typical new borrower as a proportion of average earnings are now below the average for the past 25 years.

“Despite the improvements in affordability, conditions in the housing market are likely to be tough during the remainder of 2009. Increasing unemployment, low consumer confidence and the constraining effects of the continuing dislocation of the financial markets on the availability of mortgage finance are all likely to exert downward pressure on the market over the coming months. Prospective homebuyers should factor the likelihood of further house price falls into their calculations when deciding whether or not to buy.”

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Those that have taken advantage of improved levels of affordability by getting on the property ladder, or indeed by moving up it, may wish to consider taking out a secured loan to fund any required, or purely desired, home improvements. A secured loan could pave the way to creating that ideal living space. For some this may come in the form of a new kitchen or bathroom, whereas others may be keen to expand on their property by means of a conservatory or extension. A secured loan could even be used to landscape a neglected garden in preparation for long summer days. A secured loan is one of many options to fund home improvements.

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The short answer is yes and no, depending on what you do. Taste is subjective. Painting all the walls black and removing a bedroom to have a second living room is unlikely to be appealing for most buyers! On the flipside, certain home improvements may cost more than what they would add to the property. Whereas other relatively cheap home improvements could add considerable value.

The best home improvements are those that future homebuyers will want. The worst home improvements are those that only the current homeowners want.

Make these improvements
There are a few things that you can do to your property that add value over the long-term.

• Repainting: nearly all the research that had been done by banks confirms this is the single most effective home improvement project.
• Decorating: you can do this cheaply and it shouldn’t even take long. This includes things such as re-plastering bumpy walls or ceilings and adding new carpets or flooring.
• Central heating: this is especially effective if the property does not have central heating installed already.
• Second bathroom: consider this even if you can only build half a bathroom.
• Adding an extra room: this could be a conservatory or a study or even a bedroom. Extra space is nearly always a good addition to any property.
• Loft conversion: you could convert the space between the roof and the ceiling into a study or a second bedroom.
• Tidy up the Garden: a well cared for garden is appealing to buyers.

Reconsider these improvements
While these extensions may not push up the value of your property, they do offer homeowners other less tangible benefits. Feel free to alter your property but be aware that future buyers may not need these extras or in fact, want previous features removed. Some alterations you should shy away from include:

• Removing period features such as cornicing, fireplaces and sash windows.
• Cheap laminate flooring
• Woodchip wallpaper. If you have it, get rid of it.
• Patterned carpets. Big in the 70s and in Las Vegas casinos but not in a buyer’s dream home.
• Paved over gardens.

Improvements that have little or no affect on the value
A new kitchen could go either way – good or bad. The best kitchens are ones which make best use of space, have all the desirable features and are neutral. If you’re pressed for space, a washer/dryer could be stored elsewhere. Or if you’re really lucky, white goods such as these are best stored in the utility area.

What to consider before renovating
The very first thing you should consider is the area in which the property is located. Does the area justify high-end renovations? Scale down a bit if you stay in a more modest area.  Stay true to the property’s character and stay within budget. Do not add something that is too high-tech such as wiring the whole house with speakers and an intercom system. In high end new builds, features such as these are used as selling tools but in reality, any value add is minimal. Above all, do your research.

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According to The Co-operative Bank Current Accounts, the majority of people tend to spend their wages by the 20th of each month. This information comes as a result of new research, which also indicates that many people are embracing a ‘live for today’ attitude – irrespective of the currently challenging economic conditions. Such individuals are spending in excess of half of their wages on nights out and shopping trips within 11 days of being paid.

Once an appropriate sum of money has been put to one side to cover bills, most people are left with less then 10 percent of their wage for the rest of the month. In many cases, this then means them relying on credit cards and overdrafts to get by.

John Barker, Head of Current Accounts at The Co-operative Bank, commented: “The research shows that many people are still looking to go out spending straight after being paid every month, but with the current economic downturn, it clearly leads to a much more difficult time later when many cannot get their wages to stretch until they are next paid.

“In the present economic climate developing a household budget is essential to keep spending in check and to identify ways costs can be trimmed. Keeping a much closer eye on their bank account will help people to know exactly what they have to spend”.

The study, which was based on an average monthly wage of £1,583, revealed that the majority of Brits spend at least £80 within 24 hours of being paid. This figure then increases to £228 within 48 hours, the equivalent to practically 15 percent of the average monthly wage. By day 11, the average person has spent 50 percent of their wages, which equates to £792 in monetary terms. The study showed that once money has been put aside in preparation for paying bills, the average worker is left with just £48 for the remainder of the month.

With regard to knowing how much money is possessed, the research reveals that, in addition to not having a firm grip on their spending, 40 percent of workers are not aware of the amount of money held within their bank account. This comes down to a failure to check their balance upon withdrawing money and, for 10 percent, a disregard for bank statements.

It would seem that when faced with a shortage of money, 62 percent will refrain from dining out and 36 percent will commence shopping in budget supermarkets. A further 55 percent will put their social life on hold by staying in, whilst 14 percent will switch to eating at their parents’ or in-laws’ houses. As well as this, 18 percent will eat tinned food as opposed to fresh, and 9 percent will get lifts to work with their colleagues.

In light of the current economic climate, The Co-operative Bank Accounts offer five pieces of advice for making your money go further. Firstly, prioritise the reduction of debts. Secondly, devise a monthly budget and do not veer away from it. Thirdly, ensure that you are aware of the amount of money within your bank account by checking it on a regular basis. Fourthly, set aside money for potential future emergencies if feasible. Finally, economise wherever possible.

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Homeowners that are looking to re-organise their finances, particularly following a period of heavy reliance on credit cards, may wish to consider taking out a secured loan to consolidate existing debts into one manageable monthly repayment. Borrowers will no longer need to juggle multiple confusing debts. When taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.

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In one of our previous posts we asked whether home improvements could add value. The answer was a mix of yes and no. Homeowners should make improvements that future home buyers would appreciate. Homeowners should not make any drastic alterations to their properties which only have a market appeal of one (you).

What are value-adding alterations?

Such alterations could be anything that ups your chances of selling the property at a higher price relative to the amount you have had to invest.

Do it when you have spare cash available, or when you can get a home improvement loan at a good rate.

Consider the area in which the property is located. Can you get away with high-end renovations? Stay away from anything that others could consider to be over the top, ostentatious (think Jacuzzi in the front garden) especially if you stay in a more modest area.  Stay true to the property’s character and stay within budget.

Do these improvements because they’ll bring more enjoyment to you and your family. Do not expect to double the value of your property after installing a high-tech kitchen.

Value adding improvements

Most of the banks’ research pundits cite repainting and decorating as the improvements that have the biggest value-adding potential. It’s also the cheapest improvement you can make. According the GE money, a good DIY project could add as much as £22,300 to the value of your home.

Repainting: The Halifax bank confirms this as being one of the most effective home improvement projects.

Decorating: This can be very cheap. Everything from storage solutions to covering up exposed cupboards or re-plastering a bumpy wall. Whatever you do, do not over spend in this area and keep it neutral.

Central heating: Not the most inspiring or visible of the home improvements, but it can add up to 13% to the value of your house, according to Nationwide.

Second bathroom: Consider this even if it’s only a shower room. En suites and wet rooms are increasingly popular although wet rooms can be expensive. En-suite bathrooms are well worth the extra money. Just ensure the finishes and materials are of a similar standard to those used in the main bathroom(s).

Adding an extra room: This could be a conservatory or a study. Extra space is nearly always good.

Loft conversion: You could convert the space between the roof and the ceiling into a study or a second bedroom. This was the improvement estimated as adding the most value to a home.

Parking space: Some report that adding a garage could up the value of your home by around 11%. Off street parking is very appealing to buyers, so long as you don’t have top pave over the whole garden to make it happen. Bear in mind that the cost of a garage or driveway could cost £8 upwards.

New Kitchen: Is your kitchen looking tired and dated and without the mod cons that so many of us have come to expect? A kitchen is said to be the heart of the home, so one that appeals to buyers and is accommodates their needs (such as feeding a family) is well worth the investment.

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