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Key proposals of new cap on payday lenders

The Financial Conduct Authority's cap on the interest charges and fees set by payday lenders will ensure customers will never be hit with loan costs higher than the amount borrowed.

ITV News Business Editor Joel Hills has tweeted the FCA's key proposals:

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FCA caps interest charges on payday loans and default fees. Overall cost of payday loan "will never exceed 100% of amount borrowed".

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FCA says cost of borrowing a £100 payday loan for 30 days (repaid on time) will never exceed £24. It's currently £30.

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FCA says default charges "cannot exceed £15". Wonga's was £30 but was recently lowered to £20.

FCA to impose payday lender price cap from January

The interest rates leading payday loan companies like Payday UK can charge is expected to be significantly reduced. Credit: Rui Vieira/PA Archive

The Financial Conduct Authority has announced plans to impose a price cap on payday lenders from January 2015.

The FCA confirmed earlier this year it planned to cap the total cost of credit for all payday loan firms from early next year following pressure from the Government.

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Payday loans interest cap expected

Restrictions on the amount payday loan companies can charge on interest are expected to be announced by the industry watchdog later today.

Read: Wonga name new chairman after fake letter scandal

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Payday loan companies have been accused of trapping customers in a cycle of debt with high interest rates. Credit: PA

The Financial Conduct Authority (FCA) will impose severe restrictions on the amount of interest which each company can charge, as concerns over the excessive cost of fast credit spiral.

FCA chief executive Martin Wheatley will set out details of an industry consultation which will lead to a cap being in place by the start of next year.

Payday loans have proved a controversial business model, with many accusing companies like Wonga of "legal loan sharking" and exploiting those struggling to make ends meet.

Read: Clampdown on payday lenders begins

77% of tenants 'have never switched energy supplier'

Over three quarters of tenants have never switched electricity provider, according to the latest data from Ofgem's 2014 Consumer Engagement Survey.

Read: Watchdog probes £16bn government energy deals

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Over three-quarters of renters would have stuck with the same electricity provider to heat their home, Ofgem found. Credit: PA

The poll revealed one in five tenants did not know they could change energy providers in what the industry regulator dubbed the "sheer lack of awareness" of renters' rights to shop around.

A further 74% admitted to never switching to another gas provider.

Ofgem said that although renters often thought they had to accept the energy suppliers already in place when they moved in, this was very rarely the case.

Read: 'Almost 4m households' in debt to energy provider

London houses prices 'fastest growing since 1980s'

The average house price in London is now £400,000.
The average house price in London is now £400,000. Credit: PA

London's house prices are growing at the fastest pace since the late 1980s, according to property economist Matthew Pointon.

Mr Pointon, who works for Capital Economics, said mortgage approvals have now been falling for four months in a row.

He warned: "The risk of a damaging house price correction at some point in the next few years is growing."

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UK house prices still set to rise 'four to five per cent'

House prices could increase by as much as seven per cent by 2015.
House prices could increase by as much as seven per cent by 2015. Credit: PA

Despite being at an all-time high experts predict a further four to five per cent rise in house prices by the end of 2014.

Howard Archer, chief UK and European economist for IHS Global Insight, said this could increase to seven per cent in 2015.

He said: "At the moment, house prices still look more likely than not to see clear increases over the coming months, although it is looking increasingly probable that there will be some easing back in house price gains from the recent very strong increases."

House prices: Gap in London and rest of UK 'widest ever'

The gap in house prices in London and the rest of the UK is the widest it's ever been, reports ITV's Business Editor Joel Hills.

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Gap between house prices in London and rest of the UK is widest it’s ever been, both in cash and percentage terms. http://t.co/S9o5Fmsq3q

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See the chart below for a national breakdown.

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House prices in London now 30% higher than pre-financial crisis peak, but not everywhere. http://t.co/Z7mkLs6Xn4

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Average London house price over £400,000 for first time

House prices in London have soared by 30 per cent since 2007.
House prices in London have soared by 30 per cent since 2007. Credit: Chris Ison/PA Wire

The typical price of a London property is now more than double the average UK house price breaking through the £400,000 mark for the first time, Nationwide said.

Cambridge saw the biggest surge in house prices with a 20 per cent increase putting the average cost of a house there at £419, 187.

While the value of properties in St Albans rose 18 per cent reaching an average of £451, 800.

Newcastle was named as the worst-performing city with only a three per cent increase in house prices taking prices there to £181, 473 typically.

In Wales property prices are up almost 10 per cent on a year ago now standing at £145,812.

And in Scotland, typical prices rose to £141,872, figures show.

However, In Northern Ireland, where the housing market is still recovering from some sharp falls in the wake of the financial crisis the average house price now stands at £117,150.

This is around half the level they were at their peak.

Typical UK house price now £188,000

House prices across the UK are at an all-time high.
House prices across the UK are at an all-time high. Credit: PA

The typical house price across the UK has risen 11.8% to reach an all-time high of £188,903, Nationwide has reported.

Last month figures from the Office for National Statistics found first-time buyers have to pay even more to get on the property ladder with a typical starter home now costing £199,000.

Read more: First-time buyers face surge in house prices

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