We are all now more than familiar with the rigors and strife of this unceasing economic slump, but could 2012 be the year when things change….?
It has been announced today that some consumers will be seeing cuts in the price they pay for their gas and electricity, with Scottish Power cutting their price for gas by 5% and E.on cutting the price for electricity by 6%. While many consumers may view this reduction as almost laughable, especially when compared to their recent huge price hikes, it may come as some relief to increasingly pinched British consumers, especially considering wholesale prices remain buoyant. With the tensions manifest in the Middle-East, oil and gas prices appear to be firmly on the rise as the possibility of further NATO military action could put many of the major oil routes increasingly under fire. Iran has already threatened to close the Straights of Hormuz, a major trade route, as retaliation if any action is taken against them. The effect of this on the world economy would be huge affecting all nations reliant on Middle Eastern oil, hopefully the global policy makers will work towards preventing this occurrence. But with action against Syria remaining firmly on the table things remain on a knife edge.
Could the recent up-turn in mortgage lending be those long missed and oft’ spoken ‘green shoots’.
The Council of Mortgage Lenders have announced that the rate of lending increased by just under 5% in November, up to 47,000, and higher by 3% than the previous year’s figures. While coming as a positive indicator, November’s figures pale in comparison to the number of borrowers before the credit crisis. With the temporary exemption from stamp duty for first time buyers ending in March figures are expected to increase further, but long term prospects remain bleak, with many major economic obstacles.