Recent research suggests that the Government’s move to phase out the tax breaks that buy-to-let landlords have traditionally benefitted from is having an impact on the sector. Sales of the kind of compact properties favoured by the buy-to-let market, flats and terraced houses, were down by 10% in 2017 according to recent research by Residential Analysts, the specialist market research and analysis company.
The cloud of uncertainty around huge US Department of Justice fines for their role in the sub-prime mortgages scandal is finally clearing for RBS and Barclays. In March, Barclays arrived at a £1.4 billion settlement deal with US authorities. This morning it has been confirmed that RBS has reached its own deal, albeit on that is currently still officially ‘provisional’.
Following prolonged efforts, the Scottish National Investment Bank is now a reality. The announcement to this effect was made by First Minister Nicola Sturgeon during the Programme for Government 2016/17 speech. First planned in 2014, the Scottish National Investment Bank or SNIB will boost the Scottish economy, save billions of pounds for the country’s economy and create thousands of jobs.
The rate of growth in construction activity in Northern Ireland in August touched its slowest in almost 2½ years, revealed Purchasing Managers Index (PMI) from Ulster Bank. Figures indicated sharp spike in housebuilding over the month but weaker growth in commercial building resulted in lowest figures since March 2015. Another factor responsible for the fall in the overall rate of growth was a decline in activity in civil engineering.
The bailout of Northern Rock bank should have been a secret to prevent panic, a top banker has claimed. According to Mervyn King, the then Bank of England governor, he advised the deal to bail out Northern Rock bank be kept secret to prevent panic. The day after BBC revealed the bail by the Bank of England on 13 September 2007, thousands of the bank’s customers led the first run on a British bank since 1866. The following month, the Bank of England did make secret loans worth £61.2bn to RBS and HBOS.
With lesser number of people visiting banks, the high street banks are cutting down on their branches across the UK. As the Internet and mobile phones play increasingly vital role in banking, the number of people visiting the banks is on sharp decline. Due to historic low interest rates, profit is a major concern for the high street banks which is driving closures of the branches across the country.
One of the most reputed and high street banks, the Lloyds bank is getting ready to face the challenge of changing customer behaviour, as the new reality in banking. The bank has decided to respond to the fall in the number of transactions at its outlets by reducing the number of outlets.
The Hongkong Shanghai Banking Corporation or HSBC, one of the leading banking service providers globally, has decided on economic measures as it prepares itself more for digital banking. It is going to make digital banking a priority over the traditional form. An increasing number of customers are taking to the electronic format of banking recently, which has forced the bank to cut down on physical banking. As a result, the London-based bank will close down a number of its branches across the country and focus on the digital mode.
The Royal Bank of Scotland or RBS, one of the four high street banks and clearing agents in the UK, has decided to change the way it offers services. The bank has decided to overhaul its functioning and make digital banking a priority for itself. It is closing down a number of branches as it sees red for the ninth consecutive year. Precisely, it will close down 158 branches across the UK and focus on electronic mode of banking. The majority of the branches that the bank will close are Natwest branches. Most branches will be shut down in September or October.
The sale of Africa business of Barclays and the PPI has caused Barclays slid to a £1.4bn attributable loss. The bank has significantly downgraded its Africa business and currently has just 15% stake in the operations. The bank now intends to concentrate on its core strategy of transatlantic market and the bank’s operations will be managed from the US and the UK. The group also faces PPI mis-selling for which for which it will compensate its customers. The bank has reported half-year pre-tax profit of £2.3bn which does not include the impact of the Africa sale. The figures fall below analyst expectations of £2.7bn.
