Bank sees slight mortgage pick-up

HousesThe mortgage market was relatively quiet at the end of 2010

Approvals for home loans – notably for people remortgaging their properties – picked up slightly in November, Bank of England figures show.

The number of mortgages approved for house purchases stood at 48,019 in November, a marginal rise on the previous month.

Approvals for remortgaging were up by nearly 4,000 on the previous month to 34,262 in November.

Consumers’ repayments of unsecured debts outstripped new borrowing.

The figures showed that £121m more was paid back on credit cards, overdrafts and personal loans than was taken out in new borrowing.

The slight rise in mortgage approvals for house purchases still left the figure below the average of the previous six months – of 48,145.

This showed that mortgage lending remained muted at the end of 2010.

Last month, the British Bankers’ Association said that home loan approvals for house purchases by the major UK banks had fallen to a 20-month low in November.

The latest Bank of England figures provide a more comprehensive picture across the industry.

The two sets of figures both showed that remortgaging had picked up as borrowers replaced maturing fixed-rate deals.

Some lenders have suggested this could also show that some borrowers were expecting interest rates to rise.

“The sharp increase in the number of remortgages shows that consumers are becoming far more wary of potential interest rate rises given the growing inflation threat. Increasingly, the belief is that Bank rate will rise this year and not next,” said Brian Murphy, head of lending at mortgage broker, the Mortgage Advice Bureau.

Savers with building societies and other mutuals increased their savings for the first time since April.

In November, they saved £432m more than they took out, figures from the Building Societies’ Association (BSA) showed.

Low interest rates, as well as competition from banks and National Savings and Investments, have led savers with mutuals to run down their accounts in most months during the past two years.

Net savings have increased on only four occasions since the start of 2009.

“Savings flows can be quite variable on a month-to-month basis and though it is pleasing to see balances held at mutuals increase in November, it remains to be seen whether this is the beginning of a sustained trend,” said Adrian Coles, director general of the BSA.

“However, 2011 looks set to be another challenging year for retail deposit takers as household finances remain tight and the Bank rate is likely to be held at its record low for much of the year.”

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Manufacturing growth speeds ahead

Containers at Tilbury docksAnalysts say the data points to an export-led recovery in economic growth

UK manufacturing expanded at its fastest pace for 16 years in December, according to a survey.

The Chartered Institute of Purchasing & Supply’s activity index jumped to 58.2 in December, up from 57.5 in November.

Any reading above 50 indicates growth, and it is the 17th month in a row that the index has remained over this level.

However, firms’ costs also rose at a record rate, and there is concern the data could add to pressure for the Bank of England to raise interest rates.

The CIPS survey – which is produced with financial information services company Markit – also indicated that the export-led growth meant the sector also created new jobs for the ninth consecutive month.

Rob Dobson, senior economist at Markit and author of the report, said: “The UK manufacturing sector saw a truly spectacular end to 2010.

“The latest data are consistent with manufacturing production rising at a quarterly rate close to 2%, which should generate a meaningful contribution from the sector to economic growth in the fourth quarter to offset likely weakness in other sectors.”

However, input costs rose at their fastest in the 19-year history of the survey.

The steepest price rises were reported in the textiles, clothing, food, drink, chemicals and plastics sectors.

Howard Archer, analyst at IHS Global Insight, said that the data was “fantastic” given manufacturing activity could have been disrupted by the recent Arctic weather.

“The only real blot in the survey was the record rise in input prices, which led to a pick up in output prices.

“This will not go down well at the Bank of England, and it will fuel speculation that the MPC could be pressurised into raising interest rates,” he said.

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Back-to-school flu surge expected

Child fluChildren are particularly good at spreading flu to others through coughs and sneezes
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Experts are warning there could be a surge in flu cases as people return to work and school following the Christmas holidays.

Parents are being urged to remain vigilant over the threat of flu, but High Street pharmacies have been refusing to vaccinate under-18s.

Anxious parents seeking to buy the jab to protect their children have been turned away empty handed.

Children who are otherwise healthy do not qualify for a free NHS flu jab.

But the Department of Health says there is nothing to prevent pharmacies offering the vaccine to children on a private patient basis.

However, some pharmacies say they are unable to vaccinate children because it would breach company policy or regulatory rules.

“I would anticipate a surge, but how long that will last is difficult to say”

Professor John Oxford Flu expert at St Barts and the Royal London Hospital

Boots, Superdrug, Tesco and Lloyds pharmacy said they were unable to offer the jab to children.

A spokeswoman for Lloyds pharmacy said this was something they were looking to potentially change.

“We understand that there is frustration from parents who want to vaccinate their children this winter and we will look to review this to consider if in future flu seasons we can offer flu vaccinations to younger patients.”

During last year’s pandemic flu season children aged under 5 were offered free flu jabs by GPs.

But experts decided a similar policy during this year’s flu season was unnecessary and that vaccines should be limited to those in at risk groups, such as children and adults with long-term illnesses like asthma.

Professor John Oxford, an expert in virology at St Bartholomew’s and the Royal London Hospital, said parents of children in high-risk groups should have them vaccinated as soon as possible.

“This virus is not going to go away next week. Even if it’s already peaked, it’s still going to be around for the next couple of weeks and it’s still worthwhile being vaccinated at this stage.”

He said that the return of children to school had in the past prompted a rise in the number of flu cases.

“You tend to get a surge,” he said. “I would anticipate a surge, but how long that will last is difficult to say.”

He said there was no need for panic but that parents should adopt a disciplined approach to curbing the spread of flu by keeping children away from school if they showed signs of flu.

So far this flu season there have been 39 reported deaths across the UK attributed to influenza.

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‘Killer’ caught in victim’s photo

Photograph taken by Reynaldo Dagsa, cropped to prevent identification of family membersThe killer is visible in this cropped version of the photograph just behind Mr Dagsa’s family
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A photograph taken by a Philippine politician moments before he was shot dead has led to the arrest of his suspected killer.

Reynaldo Dagsa, a Manila district councillor, took a photo of his family outside their house on New Year’s Day.

Unknowingly, a man raising his gun to fire was included in the background of the snap.

The family gave the photo to police who have now detained a man on suspicion of murder.

The killer is shown in the photograph wearing a back-to-front baseball cap just behind Mr Dagsa’s daughter, wife and mother-in-law, who were unaware of his presence.

“While he was taking the picture of his family on New Year’s Day, the killer appeared and he inadvertently took the picture of the killer with the gun aimed at him,” local police chief Jude Santos told the AFP news agency.

A copy of the photo released to the media was cropped to remove the family members, who are said to fear reprisals.

Gun violence plagues the Philippines, with cheap firearms easily available on the legal and black markets.

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Help for vulnerable crime victims

Fiona Pilkington (left) and her daughter Francecca HardwickFiona Pilkington and her daughter Francecca Hardwick died after years of abuse
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Eight police forces in England and Wales have launched a project to help vulnerable victims of anti-social behaviour.

The seven-month Home Office pilot is designed to help quickly identify and protect victims most at risk.

It will change the way police respond to calls and introduce a new system to more effectively log complaints.

It follows the death of Fiona Pilkington who killed herself and her disabled daughter after years of abuse.

They had suffered 10 years of torment at the hands of a gang of youths who taunted them and pelted their property with stones, eggs and flour.

The projects, in Avon and Somerset, Cambridgeshire, Leicestershire, Lincolnshire, London, South Wales, Sussex and West Mercia, will run until July.

“It is essential those who raise the alarm and ask for help are listened to and their complaints acted upon promptly”

James Brokenshire Crime Prevention Minister

They will focus on creating an effective call-handling system, which will better identify the most vulnerable victims, and improve information-sharing between the police and other agencies like social services.

They will also engage with communities to “clearly set out the issues which are causing the most harm to individuals and neighbourhoods” and how they will be tackled, the Home Office said.

Crime Prevention Minister James Brokenshire said: “It is not acceptable that those most in need either slip through the net or are plain ignored.

“The technology exists to allow agencies to introduce a smart way of handling such complaints and a simple way of sharing information – they need to use it.

“It is essential those who raise the alarm and ask for help are listened to and their complaints acted upon promptly.”

Home Secretary Theresa May has said the government’s approach to tackling anti-social behaviour must be turned on its head, with strong community action being used to bring back a sense of personal and social responsibility.

She has vowed to make anti-social behaviour “unusual, abnormal and something to stand up to”.

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