SourceWire: Personal Finance https://pressreleases.responsesource.com Tue, 13 Jun 2023 11:06:00 +0100 hello@responsesource.com (ResponseSource Press Release Wire) support@responsesource.com Copyright2023 ResponseSource Ltd. https://static.responsesource.com/favicon.ico <![CDATA[ResponseSource Press Release Wire: Personal Finance]]> https://pressreleases.responsesource.com Zend Framework Zend_Feed en-us http://blogs.law.harvard.edu/tech/rss 60 https://www.responsesource.com/news/104146/-unsustainable-pay-inflation-is-driving-a-need-for-better-benefits/ <![CDATA[‘Unsustainable’ pay inflation is driving a need for better benefits]]> https://feeds.feedblitz.com/~/745772966/0/sourcewirepersonalfinance~%e2%80%98Unsustainable%e2%80%99-pay-inflation-is-driving-a-need-for-better-benefits/ https://www.responsesource.com/news/104146/-unsustainable-pay-inflation-is-driving-a-need-for-better-benefits/       ]]>


John Pearce, SVP Payroll Operations at CloudPay, commented:

“It’s clear that the rising cost-of-living is continuing to put significant pressure on businesses as staff and potential new recruits seek higher pay packages in what remains a tough economic climate. However, with inflation creating a scenario where this salary inflation is having little to no impact on household budgets, firms are seemingly facing an unsustainable level of demand for pay increases.



“The challenge, of course, is that employers are already struggling with skills shortages, meaning that many are having to use pay inflation as an attraction and retention tool. But this can only be sustained for so long and businesses will need to find an alternative soon. We do anticipate that benefits packages which are more cost-effective for businesses longer-term will be increasingly relied on. That includes flexibility around pay solutions that allow individuals to control when and how often they access their pay to help mitigate against some of the budget challenges that the UK population is facing.



“Whatever the solution, something does need to change to shift this heavy reliance on pay inflation to something that adds more value to employees without breaking the bank for businesses.”



-Ends



Press contact

Vickie Collinge

vickie@bluesky-pr.com

01582 790705
      
]]> Tue, 13 Jun 2023 11:00:00 +0100 https://www.responsesource.com/news/104111/only-in-european-firms-scale-up-more-than-annually-new/ <![CDATA[Only 1 in 10 European firms scale up more than 10% annually – new report showcases the best strategies to do so]]> https://feeds.feedblitz.com/~/743795021/0/sourcewirepersonalfinance~Only-in-European-firms-scale-up-more-than-annually-%e2%80%93-new-report-showcases-the-best-strategies-to-do-so/ https://www.responsesource.com/news/104111/only-in-european-firms-scale-up-more-than-annually-new/       ]]>
The report, Cracking the Growth Code: Traits and Strategies of High-Growth Firms in Europe, is a collaborative European Scaleup Monitor, and was launched at the Institute’s inaugural conference at Nova Business School, Portugal. The conference welcomes academics and practitioners across Europe to engage in discussions to strengthen and build a knowledge community around scaling up.

The European Scaleup Institute is a collaboration between leading academic experts in Europe including: Erasmus Centre for Entrepreneurship & Rotterdam School of Management (Erasmus University Rotterdam), Netherlands; ESADE Business School, Spain; ESSEC Business School, France; Luiss Business School, Italy; NOVA Business School, Portugal; University of Galway, Ireland; Vlerick Business School, Belgium; WHU Otto Beisheim School of Management, Germany.

The collaborative European Scaleup Monitor analyses the dynamic landscape of high-growth firms (HGFs) and reveals a multitude of growth paths across Europe. The monitor sheds light on the traits and strategies of HGFs across the European scaleup ecosystem, providing valuable insights for (scaleup) entrepreneurs, governmental organisations, knowledge institutions and policymakers to address the scaleup gap.

Only one in ten companies in Europe manages to scale on average by more than 10% annually, over a three-year period. When it comes to high growth (more than 20% annual growth), this shrinks to one out of twenty-four. Consistent scaling is even more difficult to achieve: only 1.13% of all European companies are able to scale by more than 20% for two years out of the three-year period.

The European Scaleup Monitor also identifies some interesting trends regarding high growth in Europe:

Younger HGFs tend to achieve higher (consistent) average annual growth rates: they are, on average, 20% faster than their mature counterparts.
The higher the growth rate, the larger the firm size: firms with more than 50 employees experience more than twice the growth rate of their smaller counterparts.

Although HGFs are well spread across different industries, ICT and service-based industries remain in the lead.
Only 10% of Hypergrowers (40% consistent growth)are funded and tend to receive a surge of late-stage funding in the third year of the hypergrowth, implying hypergrowth to be a catalyst for funding.

Three out of the top five countries (in terms of HGF concentration) are from the Nordics, while Helsinki is a major hotspot for both high- and hypergrowth, together with Dublin and Munich.
“Together with the European Scaleup Institute, we want to address what is often referred to as ‘’the scaleup gap’’, in which less SMEs are said to be able to achieve high growth in Europe when compared to similarly crowded entrepreneurial ecosystems in the rest of the world.” - Leonardo Fuligni, Executive Director of the European Scaleup Institute.

According to European Scaleup Institute's Academic Director, prof. dr. Veroniek Collewaert: “All too often, scaling, scaleup and high-growth firms tend to be equated with young, tech firms, who have all raised millions of Euros in Venture Capital. Yet, our statistics show that these firms come in many more colours, shapes and sizes. It is absolutely key that we map and understand this diversity in high-growth firms as they may require substantially different strategies, processes and support to achieve their high growth.”

The European Scaleup Institute is a platform of academic experts and practitioners in Europe for scaleups, high-growth firms, governmental organisations and policymakers to address the scaleup gap. Their mission is to enable Europe to become a leading global scaleup ecosystem. The European Scaleup Institute aims to do this through joint research and educational initiatives across borders, sharing best practices and building a strong knowledge community around scaling up.

If you would like more information or to receive the report, please contact Peter Remon at BlueSky Education - peter@bluesky-pr.com +44 (0) 77 235 228 30.
      
]]> Thu, 01 Jun 2023 09:30:00 +0100 https://www.responsesource.com/news/104101/the-search-is-on-for-a-brilliant-cancer-research-student/ <![CDATA[The Search is on for a Brilliant Cancer Research Student to Win a Bursary Worth up to £12,000]]> https://feeds.feedblitz.com/~/743661521/0/sourcewirepersonalfinance~The-Search-is-on-for-a-Brilliant-Cancer-Research-Student-to-Win-a-Bursary-Worth-up-to-%c2%a3/ https://www.responsesource.com/news/104101/the-search-is-on-for-a-brilliant-cancer-research-student/       ]]>
Red Trouser Day, a UK bowel/colorectal cancer charity, run by volunteers, has put out the call to postgraduate research students. Paul Finch, founder of the charity, says, "It is only through research that we can improve the treatment of cancer, and hopefully one day, see the elimination of this disease. Few know that bowel cancer is the third most common cancer worldwide, and the second most common cause of cancer fatalities, leading to almost one million deaths per year. Our award is open to all postgraduate students whose research can impact bowel cancer outcomes."

The Red Trouser Day charity, founded in 2017, is run solely by volunteers. Many of these fundraisers have had their lives affected by bowel cancer. Paul speaks on behalf of all the volunteers, "We know that an exceptional student is out there in one of the UK's excellent universities. Only by going public with this search, will this substantial bursary help a well-deserving student with their research into bowel cancer."

Everyone involved with the Red Trouser Day charity is aware that finding funding for postgraduate research is becoming increasingly difficult. Nationwide cutbacks affect everyone, including students; this is why they have prioritised this award. 95% of all the Red Trouser Day funds raised,(excluding event costs), goes to sponsor research and awareness. Paul stresses that funding is one of the most common difficulties facing postgraduate students, "Just one student, free from financial constraints, could have a major effect on fighting cancer. That talented person, with the freedom to fully focus on developing new solutions, could potentially lead to new insights."

Last year's Red Trouser Day award allowed an exceptional research student from City, the University of London, to focus solely on her work. She had been holding down two part-time jobs just to pay for her living expenses, until the Red Trouser Day charity stepped in with a bursary.

The year’s award will go to a student whose research work shows promise in furthering the understanding of bowel cancer and contributes to preventing, improving the early detection of, or improving the treatment of colorectal cancer, aligning with the charity’s goals.

So we encourage everyone to get the word out there, that the search is now on!

In addition, there are two further discretionary awards available to help students. There is a travel award of £500, for undergraduate and postgraduate students researching cancer worldwide. This bursary can be used to fund travel to conferences, seminars, or for visits to the UK to further bowel cancer research. A final award of up to £1,000 will be available for funding research consumables.

The closing date for all applications is August 31, 2023.

Contact & Further Information:

To contact the Red Trouser Day Press Office, please email: info@redtrouserday.com

Full details of our bursaries, terms & conditions, and an application form, can be found on our website: https://redtrouserday.com/
      
]]> Wed, 31 May 2023 13:30:00 +0100 https://www.responsesource.com/news/104075/can-ai-help-investing-newbies-curb-their-fears-meet-nemo/ <![CDATA[Can AI help investing newbies curb their fears? Meet Nemo AI, one of the world’s first GPT powered investing market navigators]]> https://feeds.feedblitz.com/~/742664927/0/sourcewirepersonalfinance~Can-AI-help-investing-newbies-curb-their-fears-Meet-Nemo-AI-one-of-the-world%e2%80%99s-first-GPT-powered-investing-market-navigators/ https://www.responsesource.com/news/104075/can-ai-help-investing-newbies-curb-their-fears-meet-nemo/       ]]>
Backed by over 25 years of industry experience and setting out with an aim to ensure their users ‘Never Miss Out’ on investment opportunities, the recently-launched investment brand Nemo has already pioneered their use of Nemes – investing opportunities identified by real world trends.

Now the brand has utilised the power of AI to help investors find the answers to their burning questions at the tap of a button – launching one of the world’s first ever GPT powered financial assistants, Nemo AI.

On the launch of their latest venture, Nick Scott from Nemo had this to say:

“At Nemo, we’re committed to connecting individuals with opportunities in the financial markets.

“We know that many potential investors feel held back by a lack of knowledge, and that’s where Nemo AI comes in. By leveraging the latest in AI tech, we’ve created one of the world’s first GPT powered financial assistants, empowering new investors around the world with the knowledge they need to make informed decisions.

“We’re really excited for the future of Nemo AI, and can’t wait to see where the technology is able to go from here.”

Nemo AI will act as a virtual assistant, balanced financial analyst, and stock market expert, all in one within the Nemo platform. It provides straightforward answers and real-world statistics by utilising a combination of the GPT AI system - trained on 175B parameters - alongside live market data.

Nemo AI can handle both general and specific questions about investing, companies, and stock performance. The AI will provide answers ranging from how to get started, to insight into more niche investment possibilities. Nemo AI will give clients balanced answers and statistics, rather than conclusive opinions, allowing clients to make informed decisions that are right for them.

Try Nemo Assistant for yourself, it’s available worldwide.

Bringing the power of AI to the investing space, Nemo is the latest venture from Exinity, a global fintech with over 25 years’ experience providing trading and investing services to individuals.
      
]]> Thu, 25 May 2023 13:00:00 +0100 https://www.responsesource.com/news/104061/an-axe-a-stuffed-snake-and-a-tortoise-are-not/ <![CDATA[An Axe, a Stuffed Snake and a Tortoise are NOT the Weirdest Things Left in Wills According to a New Survey from Estatesearch]]> https://feeds.feedblitz.com/~/742201694/0/sourcewirepersonalfinance~An-Axe-a-Stuffed-Snake-and-a-Tortoise-are-NOT-the-Weirdest-Things-Left-in-Wills-According-to-a-New-Survey-from-Estatesearch/ https://www.responsesource.com/news/104061/an-axe-a-stuffed-snake-and-a-tortoise-are-not/       ]]>
Ben Furlong, Customer Services Director, Estatesearch confirms: “Much of our work is about supporting clients in identifying the full extent of a person's estate, in a bereavement or loss of mental capacity case. This was a serious study to ascertain how easily people can locate or already know the whereabouts of assets like life insurance, pensions, savings, premium bonds and share certificates. It revealed that 30% of people can’t easily locate or don’t know the whereabouts of their personal pensions for example, the same applied to 32% when questioned about other policies such as life insurance. A further 38% of people had not, or were unsure, if they had informed their next of kin where to find information pertaining to a National Savings and Investments account.

“We also discovered less than half the respondents have a will (47%) and of these, less than a third say that it is up to date (28%).”

Further findings included:

• There is a clear gender disparity with well over half of male respondents confirming they have a will (54%) compared with only 41% of women.
• Well over a third (38%) of people have made, updated or considered making a will due to the COVID pandemic. In the 18-24 year old age group this rose to more than half (51%), compared with only 21% of those over 55 years of age.
• Londoners are most likely to have a will (58%) while those in the North West are least likely (39%) compared to East Midlands 46%, East of England 46%, North East & Cumbria 43%, Scotland 48%, South East 49%, South West 51%, West Midlands 44%, Yorkshire & Humber 45%, Wales 43%.
• As expected, younger people are less likely to have a will. In the 18-24 year old age bracket 38% of respondents have a will compared with just over half (51%) of 55-64 year olds and 70% of those over the age of 65.
• 40% of respondents in London store financial documents digitally compared with North East & Cumbria 29%, Scotland 27% and West Midlands 24%.
• More than half (52%) of respondents hadn’t or didn’t know if their will had been registered with a will registry service. Only 36% of Londoners hadn’t or didn’t know if their will had been registered with a will registry service compared with 52% in the West Midlands, 61% in the South East, 52% in Scotland.
• If a spouse or significant other passed away, 35% of respondents said they would not be able to locate all their assets.

Ben Furlong continues: “Inspired by the Bond film Skyfall, where Judi Dench’s character M left James Bond a ‘Bulldog figurine’ in her Will, we also decided to find out what interesting or unusual items people had inherited. Further answers included: a boat, a cutlery set, an egg timer, a penny, a torch, a handmade hair spray can cover and a gun!

“Although this question was designed to be lighthearted, our survey highlights the real challenges which families and their executors face when it comes to identifying and locating the assets of the deceased. Over time, it’s easy to lose track of pension pots, premium bonds or life insurance policies. It is estimated that there is over £200 Billion in unclaimed assets in the UK including £1.45 Billion in banks and building societies and £3.4 Billion dormant assets in National Savings and Investments. In 2016, there was £15 Billion in unclaimed pension funds, while there are a further £640 Million in dormant share registrations[1].

“On behalf of one solicitor, our asset and liability search recently identified an unknown bank account containing over £75k, and this meant those funds were able to rightfully distributed to the beneficiaries. Away from our core services, Estatesearch are also committed to promoting awareness of the issues faced by private client practitioners to the wider financial industry, facilitating conversations between financial institutions and legal membership groups. As one of the founders of the Vulnerable Banking Group, we are developing technology to help firms comply with Consumer Duty and ultimately improve outcomes for vulnerable people at what can be a difficult time. The results of this research will now be used to educate and inform private client solicitors about the challenges and solutions available to support their due diligence processes in identifying estate assets.”
For further information please visit: Services - Estatesearch

- Ends –

Notes to Editors:
[1]: Source: The Reclaim Fund Ltd
[2]: Source: Dormant Asset Commission Report 2016
[3]: ‘Gone Away’ figures from a 2016 FCA Thematic Review suggest £15bn. Extrapolated to 2023, we estimate that the figure could be closer to £200bn
To access a summary presentation of the overall market research findings, please see: http://www.estatesearch.co.uk/wp-content/uploads/2023/05/Est...

Interviews with Ben Furlong are available on request.

Survey Methodology
Using an online methodology, Danebury Research conducted a nationally representative survey of 2,000 UK residents aged between 18 and 65. Fieldwork was conducted from 20 April 2023 to 26 April 2023.


About Danebury Research
Danebury Research is a global full-service market research company based in Stockbridge, Hampshire. It works with both agencies and clients on a global level. With access to a panel of over 200 million respondents, Danebury Research is dedicated to empowering brave decisions through the provision of reliable, accurate, and representative data. Services offered by Danebury Research include market research, brand research, customer satisfaction surveys, employee surveys, and PR surveys. www.daneburyresearch.com.


About Estatesearch
Estatesearch, a legal technology company for private client practitioners working on bereavement and loss of mental capacity cases and one of the founders of the Vulnerable Banking Group, has long been an advocate of protecting those who are most of risk. Estatesearch is now the largest provider of Asset & Liability Searches in the UK and has been pioneering new data and technology to help private practitioners identify assets and liabilities since 2018. For further information please see: Simplify Estate Due Diligence with Estatesearch

About the Vulnerable Banking Group
The Vulnerable Banking Group was formed by representatives of leading membership bodies and technology businesses working in the Legal Sector, to help bridge the gap between the financial industry and consumers, the goal being to strengthen communication and develop services which help to provide the best outcome for vulnerable people. For further information please see: Vulnerable Banking Group

For further information / high resolution images contact:
Mel Betts
Grapevine PR Ltd
01544 318546
melanie.betts@grapevinepr.com
      
]]> Tue, 23 May 2023 10:00:00 +0100 https://www.responsesource.com/news/104047/of-young-mortgage-borrowers-believe-that-they-will-access-a/ <![CDATA[49% of young mortgage borrowers believe that they will access a better interest rate by paying a mortgage broker fee]]> https://feeds.feedblitz.com/~/741334865/0/sourcewirepersonalfinance~of-young-mortgage-borrowers-believe-that-they-will-access-a-better-interest-rate-by-paying-a-mortgage-broker-fee/ https://www.responsesource.com/news/104047/of-young-mortgage-borrowers-believe-that-they-will-access-a/       ]]>
New independent research conducted on behalf of Boon Brokers, a fee-free mortgage and equity release brokerage, questioned 1,000 mortgage borrowers across the U.K on the topic of mortgage broker fees in the industry.

Does Paying a Broker Fee Result in a Better Interest Rate?

Boon Brokers found that almost half (49.4%) of mortgage borrowers between the age of 18 and 24 believe that they will have access to a better interest rate if they pay a broker fee. Just over a third (33.5%) of mortgage borrowers between the ages of 25 and 34 share this belief. The older the borrower, the less likely they are to take this view. Just 6.7% of mortgage borrowers over the age of 65 agree.

The data differs significantly when filtered by the city of the respondent. In England, Manchester has the highest percentage of respondents sharing this view– at 46.3%. This falls to 34.4.% in Bristol, 34.2% in London, 31.4% in Nottingham, 25% in Leeds and 25% in Norwich.

Gerard Boon, Managing Director of Boon Brokers, commented: “These statistics are worrying. Mortgage borrowers need to understand that there is no link between a brokerage’s fee structure and their product access. A fee-free whole-of-market broker is likely to have the same product access as a whole-of-market broker that charges client fees.”.

Will Paying a Mortgage Broker Fee Result in a Better Service?

Almost a fifth of respondents (18.2%) are aware that fee-free mortgage brokers exist but believe they will receive a better service from mortgage brokers that charge a fee.

The younger the borrower, the more likely they are to believe that paying a broker fee will result in a better service. At the extreme ends of the data, this view is shared by 28.6% of mortgage borrowers between ages 18 and 24 compared to just 3.3% of those over the age of 65.

There is a significant difference in the research on the topic depending on the location of the borrower. Glasgow, Belfast and Manchester have the highest percentage of respondents that share this view, at 24.4%, 22.2% and 23.1% respectively, compared to just 9.4% in Bristol and 10% in Sheffield.

Mr. Boon commented “It’s concerning that young people believe that paying a mortgage broker fee will result in a better-quality service. This is likely to be because they have less experience in the market compared to older borrowers. Younger borrowers may believe in the adage that “you get what you pay for”, even though there is no evidence to prove that this is the case in the mortgage broking industry.

Do You Have to Pay a Mortgage Broker Fee?

Boon Brokers found that many mortgage borrowers believe that they must pay a fee to use a broker service.

Over a tenth (14.3%) of mortgage borrowers questioned are unaware that some mortgage brokers do not charge a broker fee. Once again, the data shows that younger mortgage borrowers are more likely to make less informed decisions than older borrowers due to their lack of understanding of the industry. Considering the UK’s cost of living crisis, most mortgage borrowers will be seeking means to cut their expenses to maintain their living standards.

Due to the cost-of-living crisis, 8.6% of respondents confirmed that they would search for a reputable broker with lower broker fees than their current mortgage adviser when they require their service. This plan of action is especially prominent for younger borrowers between the age of 18-24 (15.6%) and 25-34 (13.5%) compared to older age groups. Only 4.4% and 6.2% of respondents between the age of 35-44 and 45-54, respectively, confirmed that they will search for a cheaper mortgage broker due to the cost of living crisis. This indicates that older borrowers are more loyal to their existing mortgage broker than younger borrowers, even if they could switch to a cheaper alternative.

Mr. Boon commented: “With the cost-of-living crisis looming in the U.K, mortgage borrowers need to understand that they do not need to pay mortgage broker fees to access broker services. There are many reputable fee-free, whole-of-market, authorised firms in the market that borrowers can access. Not to diminish the work of brokers that charge client fees, as there are excellent firms in the market that charge, but mortgage borrowers need to understand their options in order to make an informed decision.”

Should Mortgage Brokers Charge Fees?

11.8% of respondents from the Boon Brokers study agree that mortgage brokers should not charge fees to clients because they receive a commission from the lender. The results show that the older the borrower, after the age of 45, the more likely they are to take this view. 20% of respondents over the age of 65 agree.

Boon Brokers found that there was a difference in the level of broker fees charged to each age group. Young borrowers between the age of 18-24 represented the largest age category of borrowers that were charged a client fee of £1,000 or more in the past – at 10.4%. This statistic fell sharply for other age groups:

25-34 – 3.7%
35-44 – 2.2%
45-54 – 2.1%
55-64 – 2.8%
65+ - 1.7%

Mr Boon commented: “It is worrying that young borrowers between the age of 18-24 represent the highest portion of borrowers paying broker fees of £1,000 or more. Asymmetric information is a significant problem in the mortgage sector among young borrowers, as they are the least experienced in the market of any age category. These statistics indicate that intermediaries charging such large fees may be taking advantage of young borrowers’ lack of knowledge and experience of the mortgage process. The FCA’s new Consumer Duty regulation should ensure that all borrowers are treated fairly regarding fees. Hopefully these statistics become more evenly distributed among the age groups in the future.”

ENDS
For further media information please contact: Molly Hatch on digital@boonbrokers.co.uk or 01603 859 007


Notes to editors:

Boon Brokers Limited is an independent mortgage, insurance and equity release brokerage based in East Anglia. Co-founded by Gerard and Michael Boon, the company’s vision is to offer professional advice and arrangement of financial products whilst simultaneously providing the highest quality of advice.

Being independent and directly authorised by the FCA means that advisers can advise and arrange cases on a whole-of-market basis, identifying the most suitable lender/product in the UK to meet a clients’ requirements. The company does not charge any client fees for mortgage or insurance cases. Free consultations are provided nationally.

With over 60 years of experience in the industry, the company is always seeking to innovate with new technology and systems to enhance a clients’ experience.

For more information visit www.boonbrokers.co.uk
      
]]> Wed, 17 May 2023 16:00:00 +0100 https://www.responsesource.com/news/104036/latest-ons-data-demonstrates-a-need-for-flexibility-in-payroll/ <![CDATA[Latest ONS data demonstrates a need for flexibility in payroll and payments]]> https://feeds.feedblitz.com/~/740899283/0/sourcewirepersonalfinance~Latest-ONS-data-demonstrates-a-need-for-flexibility-in-payroll-and-payments/ https://www.responsesource.com/news/104036/latest-ons-data-demonstrates-a-need-for-flexibility-in-payroll/       ]]>
John Pearce, SVP Payroll Operations at CloudPay, commented:

“With the ONS data suggesting that the first quarter of 2023 saw the employment rate in the UK increase, driven by self-employed and part-time workers, businesses are going to increasingly face a need for flexibility in payroll and payments. In fact, in our recent Global Payroll Efficiency Index (PEI) report, we found that First Time Approval Rates (FTA) had decreased in the last year for the first time in the Index’s history, driven by the extra complexity of managing more part time and temporary workers.

“While this trend is to be expected in the current economic climate when employers are arguably more reluctant to increase permanent headcount and are, as a result, relying on temporary workers, it is likely to place further pressure on payroll teams to provide more flexible pay solutions. The administrative burden that increased numbers of part time and temporary workers can have on employee pay solutions is significant.

“Now more than ever, the ability to be able to seamlessly adapt and flex pay solutions to suit the constantly changing needs of the workforce is key. Delivering this will be underpinned by access to the right technology to help alleviate some of the pressure facing payroll teams.”

Ends

Press contact
Vickie Collinge
vickie@bluesky-pr.com
01582 790705
      
]]> Tue, 16 May 2023 12:00:00 +0100 https://www.responsesource.com/news/104028/independent-review-signals-stronger-protection-for-new-build-home-buyers/ <![CDATA[Independent Review signals stronger protection for new build home buyers]]> https://feeds.feedblitz.com/~/740768711/0/sourcewirepersonalfinance~Independent-Review-signals-stronger-protection-for-new-build-home-buyers/ https://www.responsesource.com/news/104028/independent-review-signals-stronger-protection-for-new-build-home-buyers/       ]]>
The Review, commissioned by the Code’s Management Board as part of its triennial refresh of the Code, involved extensive liaison with industry and consumer stakeholders, as well as an online survey which was open to all interested parties, including home buyers.

Bridgeman’s report concludes the Code is doing a good job of protecting consumers and driving improvements in customer service standards, with highlights including:
• The Government-approved Independent Dispute Resolution Scheme which is free for consumers to access.
• Full accreditation through the independent Consumer Codes Approval Scheme.
• The sanction regime, including the ability to exclude companies from warranty schemes for failure to comply.
• Its informative website and government-approved contact centre to aid consumers.

However, the report also highlights the need to address gaps and recommends several enhancements to improve the protection offered. These include:
• Aligning different code schemes and simplifying access to complaint advice for consumers (supported by 95% of respondents to the Code Review stakeholder questionnaire).
• Raising the maximum financial compensation threshold, as well as the individual amount that can be awarded for distress and inconvenience.
• Incorporating new requirements for home builders to improve how snagging issues (non-structural defects identified in the first two years post occupation) are dealt with, tackling some of the most common causes of complaint from new build home buyers.
• Broadening the scope of the Code to include shared ownership and strengthening requirements to support vulnerable customers.
• Outlawing financial incentives to complete on properties that haven’t yet met warranty standards and requiring any commissions for recommending products and services to be declared.

The Review also makes recommendations for the wider industry and policymakers to consider, including a cash retention scheme to give consumers extra leverage, as well as an industry compensation fund to underwrite awards made to consumers.

Report author, John Bridgeman CBE, said:
“Buying a new home is one of the most significant purchases we can make which is why proper protection of consumers is essential. My recommendations are designed to deliver enhanced protection, greater levels of financial recompense and a more cohesive approach to customer service and support across the industry.”

Originally due in 2020, this review was delayed due to expectations that the Government may introduce a single statutory code of practice and statutory new homes ombudsman. With this now unlikely to happen in the foreseeable future, it has become more important to align existing Codes where this benefits consumers, to minimise confusion.

Code Chairman, Noel Hunter OBE, said:
“This Review reinforces the importance of robust consumer protection for the buyers of new build homes. The Code’s Management Board has accepted most of the recommendations and we will shortly be consulting on an updated Code. We will also work with policymakers and the wider industry to support the broader recommendations which sit outside our remit.”

The Code review took place from August 2022, involving a wide range of stakeholders, including consumers and consumer advisory groups, industry bodies, developers, agents, and those involved in the wider home building industry. The recommendations were delivered to the Code’s Management Board in March 2023 and the updated Code, incorporating recommendations from the Review, is due to be launched in early autumn, post consultation. Home builders will be given time to transition to the new arrangements and all homes built prior to the launch of the updated Code will continue to benefit from the existing cover in place at the time of purchase (until two years after occupancy). Updated training and support materials will be provided on the Consumer Code for Home Builders website to explain the new recommendations and protection available.

The full report and Code’s Management Board response are available to download in full:
Independent Review of the Consumer Code for Home Builders by John Bridgeman CBE
Code Review Board Response

For more information, contact:
T: 0345 608 9797
E: enquiries@consumercode.co.uk

About the Consumer Code for Home Builders
The Consumer Code for Home Builders (“the Code”) was established in 2010 in partnership with the leading home warranty providers, the Home Builders’ Federation and consumer rights organisations. The supporting Home Warranty Bodies are NHBC, Checkmate, LABC Warranty and Premier Guarantee.
The Code sets mandatory Requirements that most home builders registered with the supporting home warranty bodies must meet in their marketing and selling of new homes and their after-sales customer service. The Code also provides access to an Independent Dispute Resolution Scheme, provided by the Centre for Effective Dispute Resolution (www.cedr.com).
The Code publishes information for consumers and shares guidance and learning from complaints with developers via its website www.consumercode.co.uk
      
]]> Mon, 15 May 2023 13:00:00 +0100 https://www.responsesource.com/news/104020/it-will-cause-more-misery-to-millions-of-homeowners-and/ <![CDATA[“It will cause more misery to millions of homeowners and tenants, who often see rents rise in line with the cost of their landlord’s mortgage.”]]> https://feeds.feedblitz.com/~/740053268/0/sourcewirepersonalfinance~%e2%80%9cIt-will-cause-more-misery-to-millions-of-homeowners-and-tenants-who-often-see-rents-rise-in-line-with-the-cost-of-their-landlord%e2%80%99s/ https://www.responsesource.com/news/104020/it-will-cause-more-misery-to-millions-of-homeowners-and/       ]]>
“The rise today is very disappointing. The Bank of England has very limited tools to combat the inflation that is making life so difficult, raising interest rates is one of them.

“Housing costs such as mortgages and rents have rocketed in the last two years – up 26% on average. The rise in rates may help to control these increases eventually but in the short term, it will cause more misery to millions of homeowners and tenants, who often see rents rise in line with the cost of their landlord’s mortgage.

This is the 12th increase in a row and is one that could potentially snuff out the mini-recovery that has begun this spring. We must hope there isn't a 13th.”
      
]]> Thu, 11 May 2023 12:00:00 +0100 https://www.responsesource.com/news/104017/latest-payroll-efficiency-index-report-suggests-firms-are-looking-for/ <![CDATA[Latest Payroll Efficiency Index report suggests firms are looking for financial flexibility to support staff as household budgets are squeezed – but payroll teams are feeling the pressure]]> https://feeds.feedblitz.com/~/740038955/0/sourcewirepersonalfinance~Latest-Payroll-Efficiency-Index-report-suggests-firms-are-looking-for-financial-flexibility-to-support-staff-as-household-budgets-are-squeezed-%e2%80%93-but/ https://www.responsesource.com/news/104017/latest-payroll-efficiency-index-report-suggests-firms-are-looking-for/       ]]> Global Payroll Efficiency Index (PEI) report shows decline in First Time Approval Rates, driven by spikes in off-cycle staff payments as rising costs of living squeeze household budgets
- Overall payroll performance remained positive last year with data input errors and payslips issues dropping as firms seek to improve payroll experiences for workers
- Technology and integration with Human Capital Management systems improving payroll efficiencies, with a joined-up approach from payroll to payment reducing errors and issues

Global economic instability and the rising costs of living have led to firms making additional payments to employees throughout the month, with First Time Approval (FTA) rates for payroll teams dropping last year, but payroll teams are feeling the pressure to improve the process from payroll to payment. That’s according to a new report issued today by global employee pay company, CloudPay.

The PEI report benchmarks payroll processing KPIs across 130+ countries, analysing FTA in conjunction with Data Input Issues, Payroll Calendar Length, Supplement Runs and Issues per 1,000 payslips. Now in its fourth year, the PEI report demonstrates a decline in global FTA of 0.87%, with the EMEA region noting the greatest fall (2%), largely due to the economic instability noted in the region.

According to CloudPay, this drop in First Time Approval rates is indicative of payroll teams making additional off-cycle payments as firms increasingly look at ways to support staff during the cost-of-living crisis. This is further evidenced by additional research from CloudPay which revealed that the use of on-demand pay services last year increased, with withdrawal amounts doubling as users continued to use these solutions as digital ATMs.

Technology and Integration Driving Performance Improvements
Despite the fall in FTA, the PEI study reveals that payroll performance has improved overall globally, largely driven by tech innovation and better integration with Human Capital Management Systems (HCMs). This connection is providing a joined-up approach throughout the entire pay process that is leading to greater efficiencies from payroll to payment.

A 3.6% reduction in payroll data input errors was noted worldwide, with the Americas region leading in improvements with a 10.2% reduction in issues noted last year. Issues per 1,000 payslips also fell to a global average of 8.64 – the lowest rate ever recorded by the PEI report. These improvements are no doubt a direct result of software and technology developments in the payroll sector which is further evidenced by the fact that Treasury teams reported that payments had been made on time in 99.02% of cases.

John Pearce, SVP Payroll Operations at CloudPay, commented: “The overall positive picture that we’re seeing in payroll performance is reflective of an increased desire and, indeed, ability, to innovate the pay process due to better tech integrations and a more joined-up approach on a global and local basis. Delivering a modern pay experience that is underpinned by technology, simplified for the end-user and flexible, is a top priority for global payroll teams.

“While the latest PEI report does indicate a fall in FTA which is generally considered a catch-all KPI for payroll efficiency, this is more likely a result of businesses providing additional financial support for employees as rising costs of living impact household budgets. We expect that the adoption of new technology will only serve to improve pay efficiency further and, perhaps more importantly, bolster employee experiences on a global scale.”

-Ends-

Press contact
Vickie Collinge
vickie@bluesky-pr.com
01582 790 705
Approved boilerplate

CloudPay is an organisation united by a single purpose – to modernise the pay experience for business and people, raising the importance of pay processes beyond an operational function to become a true business advantage.

With a proud heritage of over 25 years, we are trusted to manage the pay processes of 250 global organisations, processing over 2.5 million payslips a year in 130 countries and handling over $24bn of payments in 168 currencies. Our integrated portfolio of payroll, funding, payments and pay on-demand solutions are delivered through a single cloud-based platform that can be deployed anywhere in the world.

By unifying payroll, treasury and HCM functions and leveraging the latest technology, we can transform pay processes, making them fast and friction-free. We’re also making payroll more flexible and bringing certainty, with end-to-end compliance, always-on global data analytics and error-free automated operations, so however complex an organisation may be, payroll is one thing that can be relied on.
      
]]> Thu, 11 May 2023 10:00:00 +0100 https://www.responsesource.com/news/104018/will-a-ban-on-cold-calling-make-any-real-difference/ <![CDATA[Will a ban on cold calling make any real difference to the scam industry?]]> https://feeds.feedblitz.com/~/740035889/0/sourcewirepersonalfinance~Will-a-ban-on-cold-calling-make-any-real-difference-to-the-scam-industry/ https://www.responsesource.com/news/104018/will-a-ban-on-cold-calling-make-any-real-difference/       ]]>

- About the ban on pension calling being expanded to all financial services

- Fraud accounts for 40% of all crime in the UK

- With most scams originating from overseas, why we are so powerless to stop them – some new ideas

- Why scammers are so convincing and how the UK setting up foreign call centres in the past helped to train the scammers who are causing so many problems today – some new thoughts

- Why this is a growing problem so unlikely to go away – some new ideas

- What can we do to fight scammers – includes some new ideas

- How to avoid being scammed


---------------------------


The level of financial scams in the UK has now reached such a level that the Government is planning to extend the current ban on cold calling, in relation to pensions, to cover all financial products, as a further step to try to protect the public.

In 2019 the ban was introduced on pension cold calling, in a bid to eliminate the devastating impact on lives caused by pension scams, which saw people cheated out of their life’s savings. Action Fraud found that the average victim of pension fraud lost a staggering £75,000.

Despite efforts to improve public awareness of scams, fraud still accounts for around 40% of all crime in the UK, with the cost estimated to be in the region of £7bn a year. As a key source of funding for organised crime, the importance of stopping financial scams has never been greater. KIS Finance has looked into whether the new legislation will make any real difference or whether the scam industry has become too imbedded to be defeated so easily.



Rebuilding public confidence in the finance sector

The public’s confidence in the finance sector is being undermined by the fear of falling victim to a scam and it’s for this reason that the Government is now looking to stop the scammers at source. By outlawing cold calling on all financial products, including insurance and cryptocurrency, the plan is to make it more difficult for scammers to contact their victims in the first place. Anyone receiving a cold call, in relation to any form of financial product, can be confident that the call is a scam and that they are not dealing with a legitimate finance company, as a legitimate company would not be making an illegal call.

Of course, scammers can sound very convincing but the advice to anyone receiving a cold call is to simply hang up and report the matter.



Why are scammers so convincing?

One of the biggest challenges to tackling scams is that many of those perpetrating these crimes are extremely convincing. This can in part be traced back to where a large part of the scam industry originates from in India.

The early 2000s saw a massive growth in overseas call centres for numerous banks, building societies and insurance companies, who invested heavily in technical and customer services training for the large teams they employed there. However, when the market shifted away from using overseas centres, the scammers moved in. With high unemployment and the associated poverty, the market was just right for scammers to exploit the skills that had been left behind.

With unemployment currently running at around 10% and over 37 million people looking for work in India, it’s hardly surprising that scammers are able to recruit the numbers they need to operate on such a huge scale. With few job options for the young and educated, scammers have been able to build a strong base and very profitable industry, that they are unlikely to walk away from any time soon.



What other steps are being taken to tackle scammers?


Unfortunately, the more aware people have become of scams, the more sophisticated the scammers have become in their attempts to fool people into thinking that they are dealing with a legitimate company. The Government plan to work with Ofcom to try to clamp down on “spoofing”, where scammers impersonate legitimate UK phone numbers to fool the recipient into believing that they are in contact with the genuine UK based company and not speaking to someone thousands of miles away where the UK police have no jurisdiction.

The proposals will also cover banning “SIM farms” which fraudsters use to simultaneously text thousands of recipients with scamming messages.

The new National Fraud Squad is being introduced to replace the current Action Fraud service, to try to improve public confidence that the issue of scams is being dealt with effectively. This will involve the recruitment of 400 new specialists, whose goal will be to crack down on those committing the offences, as without the legitimate threat of action being taken there is currently little to deter the fraudsters. However, this is unlikely to have any impact on the large proportion of scams which originate abroad.

With 96% of crimes reported to Action Fraud being closed without a successful outcome, it is questionable whether the new National Fraud Squad will have any more success in deterring the scammers.



Will the new legislation make a difference?

Whilst the new measures may help, the key will be raising public awareness so that anyone contacted by phone or text will immediately know that the call is not legitimate. However, scammers have long relied on finding new ways to commit fraud and with 41 million adults in the UK targeted by suspicious calls and texts last summer alone, the risk is that they will still manage to exploit the vulnerable.

With a large part of the scam industry originating abroad and therefore outside of the jurisdiction of UK legislation, the question is whether the new legislation will actually do much to reduce the number of scam victims who fall prey to the ever-evolving scam sector.



Phoebe Griffits, fraud expert at KIS Finance says:
“Raising public awareness is the key to defeating the scammers. Despite all the efforts to date, the problem still persists as people continue to fall for the scammers’ stories and lies.

If the Government wants the new legislation to really make a difference, they need to invest in a large scale public awareness campaign, to reinforce the message that if you receive a cold call in relation to your finances it’s a scam - no matter how convincing they sound!

It’s often the elderly who are prime targets for the scammers, so any information campaign needs to think about how this group receive their news. On-line information is not enough. Public information on TV and radio will be key to reaching this demographic and reinforcing the message that they should always hang up the phone if they receive this type of call.

Potentially trusted organisations, such as Age UK, could support an information campaign to help get the message out to the most vulnerable. Ironically, it could even be that a telemarketing campaign could be an effective way to reach those who would entertain a sales phone call.


If people are concerned about a call that they have received, they should ring their bank or the relevant body direct themselves, using the telephone number provided on their bank card or on other paperwork that they have received. Never call back on a number provided by the caller as this will all be part of the scam.

Those with elderly or vulnerable relatives would do well to help protect them by reinforcing this message and advising their relative to speak to them if they are concerned over any calls that they have received.
It will only be by actively working to raise awareness and reducing their success rates, that we will be able to stamp out the scammers and stop them in their tracks ”



The key ways to avoid being scammed


Always hang up on cold calls

Genuine finance companies and bodies such as HMRC will never call you or text you out of the blue to either offer you a financial product or to discuss your personal financial situation. If you receive a call just hang up. If you receive an email or text don’t respond as it is likely to be a scammer on the lookout for victims, so just ignore it. If you are worried that an email might legitimately be from your bank, then don’t reply to the email, but go to their official website and message them from there.


Don’t give out personal details

Never give out your personal details on the phone, even if the caller says they are from your bank or another business that you use. Hang up and call the bank / company back using the correct contact details from their website.

However, be wary of calling straight away from your own phone, as the fraudster might still be on the line and able to listen in on your call. Instead, use a different phone to ensure that your personal information stays safe.



If it seems too good to be true it’s almost certainly a scam

If you are offered an amazing rate of return on an investment or a chance to invest in an unusual opportunity, then do your homework. If something looks too good to be true it’s almost certainly a scam and designed to draw you in. Never part with your money without looking into things carefully and perhaps discuss it with a trusted friend or relative if you are in any doubt.


Take your time

If someone is pushing you to make a quick decision or is telling you the offer is only available for a limited period of time, then be cautious. Legitimate companies won’t pressurise you to make a decision.


Further guidance on fraud prevention and avoiding becoming a victim of scamming are available in the detailed guides on our website.

https://www.kisbridgingloans.co.uk/guide-to-fraud-prevention...



[ENDS]


full report at:

https://www.kisbridgingloans.co.uk/guide-to-fraud-prevention...


About KIS Finance:

KIS Finance are an independent finance broker specialising in bridging finance, development finance, commercial mortgages, equity release, and secured loans. Their team of advisors have considerable experience across multiple different areas of the finance sector, as well as insurance and compliance.


Contact details:

Sue Andrews
sue@kisfinance.co.uk
01884 669099
      
]]> Thu, 11 May 2023 09:00:00 +0100 https://www.responsesource.com/news/103998/the-memory-remains-mourners-will-place-greater-importance-on-ashes/ <![CDATA[THE MEMORY REMAINS: MOURNERS ‘WILL PLACE GREATER IMPORTANCE ON ASHES THAN COFFIN’]]> https://feeds.feedblitz.com/~/739396190/0/sourcewirepersonalfinance~THE-MEMORY-REMAINS-MOURNERS-%e2%80%98WILL-PLACE-GREATER-IMPORTANCE-ON-ASHES-THAN-COFFIN%e2%80%99/ https://www.responsesource.com/news/103998/the-memory-remains-mourners-will-place-greater-importance-on-ashes/       ]]> The direct cremation specialist has published a report from its landmark research, the Big Future of Funerals Survey which compiled responses from a staggering 17,135 pre-paid funeral plan customers to shed light on how UK consumer attitudes towards funerals will evolve.
One key finding is that 52% of respondents want to express their life through the ashes’ final resting place – marking a fundamental shift in the way family and loved ones say goodbye.
Over the past three decades there has been a steady decline in the number of families choosing formal disposition of the ashes in a cemetery as the bereaved look for sites that are more meaningful to them.
Catherine Powell, co-founder and Owner of Pure Cremation, said: “A cremation funeral is ‘unfinished’ until the ashes have been laid to rest. Families have long taken care of this themselves, without the help of clergy or funeral directors, so making this element the focus for the farewell is a very natural evolution.”
Catherine added: “Direct cremation gives families new freedom to reflect their loved one’s life story at a favourite place, such as a garden, the forest where they walked their dog every day, or the beach where they proposed. Using the ashes as the focal point makes it much easier to choose the perfect farewell location and creating this deeply personal connection could provide greater closure than a ceremony at a specialist ‘death venue’ such as a church or a crematorium.”
Pure is one of the UK’s leading providers of direct cremation – where the deceased is collected, cared for, and then cremated without a service or mourners present. Demand for direct cremation has more than quadrupled in the last four years and is expected to match the demand for burials within the next three years.
Editor’s Note: For further information contact Celeste Clarke at Century PR on 07799064066 or email celeste@centurypr.co.uk.
      
]]> Tue, 09 May 2023 09:00:00 +0100 https://www.responsesource.com/news/103996/zinc-group-limited-named-in-grant-thornton-s-warwickshire-limited-report-/ <![CDATA[Zinc Group Limited named in Grant Thornton's Warwickshire Limited report.]]> https://feeds.feedblitz.com/~/738664031/0/sourcewirepersonalfinance~Zinc-Group-Limited-named-in-Grant-Thorntons-Warwickshire-Limited-report/ https://www.responsesource.com/news/103996/zinc-group-limited-named-in-grant-thornton-s-warwickshire-limited-report-/       ]]> The report seeks to recognise and celebrate some of the most successful, privately owned businesses in the regions, providing them with the recognition they deserve for their contribution to the UK economy.
As a leading company in Warwickshire and the UK, Zinc Group Limited has been recognized for its contribution to the local and national economy, and its dedication to providing high-quality services to its clients. The company's inclusion in the report is a testament to its commitment to excellence and growth.

"We are delighted to be included in Grant Thornton's Warwickshire Limited report," said Dougie McManus, CEO of Zinc Group Limited. "We appreciate being recognised for our hard work and contributions to the economy, and we are grateful for the opportunity to showcase our success alongside other great businesses in the region."

The Zinc Group Limited is a receivables management company that has been providing excellent service to its clients for over 15 years. With a strong commitment to innovation, quality, and customer service, the company has become a leader in its industry and a valuable contributor to the region's economy, working with large national and global brands across Financial Services, Utilities, Telco, Retail & Health Care.
For more information on Zinc Group Limited, visit www.thezincgroup.com

Contact: Craig Proctor – Group Commercial Director – cproctor@thezincgroup.com
      
]]> Thu, 04 May 2023 10:45:00 +0100 https://www.responsesource.com/news/103991/cloudpay-partners-with-perkbox-in-first-of-its-kind-collaboration/ <![CDATA[CloudPay partners with Perkbox in first of its kind collaboration]]> https://feeds.feedblitz.com/~/738655070/0/sourcewirepersonalfinance~CloudPay-partners-with-Perkbox-in-first-of-its-kind-collaboration/ https://www.responsesource.com/news/103991/cloudpay-partners-with-perkbox-in-first-of-its-kind-collaboration/       ]]>
ANDOVER, UK – 4th MAY 2023 - Global employee pay company, CloudPay, has partnered with the global reward and recognition platform, Perkbox, to empower HR leaders across the globe, by offering their employees financial flexibility and control

The partnership, which is the first collaboration of its kind, means that Perkbox admins worldwide will now be able to access CloudPay NOW as a workplace perk, as part of a broader reward package.

CloudPay NOW is a low-cost, high-value employee benefit that empowers workers by giving them on-demand access to their earned wages via a mobile app. Giving employees access to their wages instantly and offering complete visibility over their earnings, it puts the power in the hands of the employee to decide when and how often they are paid. Most importantly, it helps makes a positive impact on financial wellbeing.

Emma Streatfield, Chief Revenue Officer at CloudPay commented: “This is a very exciting opportunity for both businesses to continue building on our mutual goal of putting more choice into the hands of employees worldwide. CloudPay NOW was created because of a clear need for fast and flexible access to pay which has seen further demand due to the rising costs of living. Providing solutions that support employee wellbeing and create greater autonomy of choice in the workplace is key to us at CloudPay. So, partnering with a company like Perkbox that is equally as committed will help continue our journey to modernise the employee pay experience on a global scale.”

“This mutual partnership will also mean that Perkbox will be offered to CloudPay’s growing customer base. CloudPay customers will also be given the opportunity to opt-in to the global reward and recognition programme in addition to their ongoing payroll and employee payments services.

Andrew Woolnough, General Manager at CloudPay Treasury Services said: “Thanks to this partnership, employees will now have full flexibility and fast access to their earned pay when it’s needed which in turn will deliver much needed help with their financial wellbeing. Together, we’re really supporting the creation of a unique global workplace environment that gives employees greater choice in how they work contextualising their salary as part of their reward package.”

According to Joel Tobias, Strategic Alliances Director at Perkbox, this new partnership allows businesses to offer flexible pay solutions globally: “Partnering with CloudPay really is a ‘better together’ moment. We pride ourselves on partnering with like-minded businesses that offer maximum choice for employees and we’re really excited to offer this as an added service to our clients. Thanks to the CloudPay NOW technology we’ll not only be able to offer financial flexibility and wellbeing but also a seamless integration with Perkbox that supports a fast and easy experience for all.”

Ends

Press contact
Vickie Collinge
vickie@bluesky-pr.com
01582 790 705
      
]]> Thu, 04 May 2023 09:30:00 +0100 https://www.responsesource.com/news/103985/people-exposed-to-war-and-destruction-place-less-value-on/ <![CDATA[People exposed to war and destruction place less value on housing and homeownership - even decades later]]> https://feeds.feedblitz.com/~/738465176/0/sourcewirepersonalfinance~People-exposed-to-war-and-destruction-place-less-value-on-housing-and-homeownership-even-decades-later/ https://www.responsesource.com/news/103985/people-exposed-to-war-and-destruction-place-less-value-on/       ]]> Frankfurt School of Finance & Management.

Jonas Happel, Prof. Yigitcan Karabulut, and Prof. Larissa Schäfer, from Frankfurt School, and Prof. Selale Tüzel from USC Marshall School of Business, used the residential destruction of Germany during World War II (WWII) to study the impact of negative housing experiences on household attitudes and preferences toward housing and homeownership.

Individuals were divided into cohorts based on whether they were directly exposed to WWII (i.e., born before 1940) or born after 1951 and only experienced the consequences of the war.

By examining household-level data from 1985 to 2017, the researchers studied the degree of variation in destruction across cities and its long-term impact on households' homeownership decisions. The researchers found that those exposed to war in highly destructive areas were significantly less likely to be homeowners decades later.

They find that this variation in housing market participation is driven by people's negative attitudes toward housing and homeownership. The researchers show that war-exposed households tend to occupy smaller homes and value non-housing consumption goods and services, such as travel, more than homeownership.

"The consequences of housing attitudes go beyond homeownership rates. They also affect household wealth. We find that, on average, the financial wealth of destruction-exposed households is similar to that of other households, but these households have lower total wealth due to lower homeownership rates," explains Prof. Karabulut.

This research contributes to literature investigating the long-term effects of warfare on economic outcomes and the role of past experiences in household economic and financial behaviour.

The working paper was first published in the CEPR Discussion Paper Series (DP17420) and is currently being revised for a resubmission for the Journal of Financial Economics.


/ENDS

For more information, a copy of the research, or to speak with the researchers for more information, please contact Kyle Grizzell from BlueSky Education on +44 (0) 1582 790709 or kyle@bluesky-pr.com
      
]]> Wed, 03 May 2023 10:00:00 +0100