Money Mayhem

The UK Consumer Prices Index (CPI) annual inflation rate rose to 4% in January

2011-03-01T08:45:00.000+00:00

up from 3.7% in December, as the effects of the VAT rise were felt.

Higher oil prices also meant inflation remained well above the 2% target.

Retail Prices Index (RPI) inflation - which includes mortgage interest payments - rose to 5.1% from 4.8%.

The CPI figure is the highest since November 2008, and will put pressure on the Bank of England to lift interest rates to curb accelerating inflation.

The CPI measure has now been one percentage point or more above target for 14 months.

Bank of England governor Mervyn King has now written to the government, after sending three such letters last year, explaining the outlook for inflation and what will be done to tackle it.

In his letter he says inflation is likely to rise towards 5% in the coming months.

Referring to expected interest rate increases, he added: "The MPC's central judgement, under the assumption that Bank rate increases in line with market expectations, remains that inflation will fall back so that it is about as likely to be above the target as below it two to three years ahead."

Mr King said the rise in inflation was due to the VAT rise, the past weakness of the pound and recent rises in commodity prices.

"In his view, the 4% rise in the CPI in the past 12 months is unfortunate - but temporary, and almost entirely driven by factors beyond the Bank's control," said the BBC's economics editor Stephanie Flanders.

"Until this month, I would say that the majority of City experts have agreed with him that most of the upward pressure comes from the fall in the pound, VAT changes, and global changes in the price of food, energy and other commodities.

"But there are some warning flags in the January numbers."

In his reply to Mr King's letter, Chancellor George Osborne said he recognised that commodity prices had been "a key driver of recent UK inflation". However, there was no reference to the recent VAT increase.

Shadow chancellor Ed Balls, speaking on BBC Radio 5 live, blamed inflation on the VAT rise, which he described as "a mistake".

Holidays? Britain, Abroad. Fly, Drive?

2011-02-28T07:47:00.000+00:00

So many things to consider when planning your holidays this year.

We have just finished planning our family holidays this year. The way the climate is going it just seems that a break anywhere away from the hum drum of home is great. Something cheap and cheery and good value for money. New sites have just been set up to help us compare holiday prices with all companies at the same time.

I had a go at these sites and yes it’s easy to do and yes you can compare prices but no it is not the best value for money. I have found a company called LOW COST HOLIDAYS which on every check I did for any holiday and all different times of the year. This one was always a good couple of hundred pounds cheaper. Amazing that by going to their own site and not a compare site made it even cheaper. They offer even more discount if you get parking, transfers and insurance with them. Better still if you do it all via Quidco you will get another discount also depending on what the offer is. The only down side I would say is that the deposits are usually about half the amount of the holiday to be paid up front. Other than that a great way to save money on your abroad holiday this year.

Another option for holiday would be Britain. A holiday park with either shallots or statics or take along your own caravan. Brilliant for kids as nearly all of them have fab kids clubs and entertainment. So many of them are offering discounts at the moment. One I would definitely recommend would be Park Dean Resorts. You also can collect the vouchers in the Sun for their famous £9.50 holidays. You can go all over Europe with them also. Yes ok it isn’t really £9.50 and there are always extra charges but for an example a holiday for 4 in a Haven site with everything included bedding, passes, entertainment will cost us £58.00 for 4 nights.

We definitely couldn’t do 4 day trips with our kids for that much! The entertainment is all there, kids clubs and swimming pool and other sports so all you will need is a bit of pocket money. Not only would you have a great time, save money but you would also be supporting the British tourism industry which is second to none. The only two downfalls I can find is the time it takes to collect vouchers and the weather.

Remember every penny counts, you can only ever spend it once so why spend too much?

Cheers Mrs G x

UK retail sales bounce back in January

2011-02-28T07:42:00.000+00:00

Customers returned to the shops in January after December's fall-off

UK retail sales rebounded in January after heavy snow caused a big drop in December sales, figures have shown.

The volume of retail sales in January rose 1.9% on the previous month, the Office for National Statistics said.

December's monthly figure was also revised from an earlier estimate of a 0.8% fall to a 1.4% drop - the biggest December fall since records began.

Over a longer period, sales in November to January were up 0.2% compared with the previous three months.

Snow and VAT

Year-on-year, sales volumes were up 5.3% in January - the biggest annual increase for more than six years.

The figures were better than expected. Analysts had forecast a monthly rise of 0.5% and an annual increase of 4.1%.

"The monthly pattern of retail sales has been affected by the extremely bad weather in both January 2010 and December 2010, and changes to the VAT rate in both years," the ONS said in its latest monthly release.

VAT increased from 15% to 17.5% on 1 January 2010 and from 17.5% to 20% on 4 January 2011.

There was some anecdotal evidence that shoppers made major purchases before the VAT rise took effect on 4 January, the ONS said, with sales falling off thereafter.

Inflation impact

There was much wailing and gnashing of teeth when December's retail sales figures were published, with talk of the worst Christmas shopping season in more than a decade. Bad weather had kept shoppers away on crucial trading days.
Now we learn there was a sharp bounce back in January, even with the VAT increase. Across both months total retail sales came out ahead.
But the ONS notes that a chunk of January's increase happened before the VAT rise on the 4th.
Worries about inflation and possible interest rate rises may be worrying consumers. We will need to wait until February's figures are out to get a clearer picture.

Independent retail analyst Rahul Sharma said that because of these effects, February would be "a much better pointer" to the underlying trend in sales.

He also warned that with rising commodity prices and the CPI measure of inflation currently at 4% - double the Bank of England's target - consumers would soon face even higher prices.

"People aren't fully aware of the kind of increases that are coming, largely because the retailers haven't been in a position to pass them on. But increases are coming," he told the BBC.

"For clothing retailers [in particular], the level of raw material price increases has been so significant that they need to pass them on to the consumer."

By value, retail sales in January rose by 3% on the month and 8.2% on the year, reflecting the increased volumes as well as the impact of inflation.

'High watermark'

Andrew Goodwin, senior economic adviser to the Ernst & Young Item Club, agreed that the rest of the year could be tough for both consumers and retailers.

"Spending power is under huge pressure from high inflation and weak earnings, while confidence is very weak and households remain heavily indebted.

"January could well represent the high watermark for retailers in what is likely to be a very difficult year."

The British Chambers of Commerce said that in general, the figures "support our view that GDP will show positive growth in the first quarter of 2011 after the decline in the last quarter".

Take the £1000 challenge with Quidco

2011-02-25T08:40:00.001+00:00

Huge savings to be made just by taking the time to hunt down the bargains

Firstly I would like to thank anyone out there who is reading the blog. My whole world is full of money saving and creating ideas so it is so nice to be able to share them. Remember you can leave comments or even become a follower at anytime. So a big thanks to your all goes out!

Now for today’s to tips.

A friend of mine recommended me to a site before Christmas last year. She could not believe I had never heard of them and to be honest now that I use them I can’t believe it either!

The site I am referring to is QUIDCO. Fantastic! www.quidco.com

This site combines the love to shop and get bargains all at the same time. Then to add a twist to its tail it pays you to do it!

You earn money by going through their links to offers that are present on their web site. Every normal everyday link is there such as Asda, Vodafone, Argos, and many many many more. In fact at present approx 2000 different retailers. Even Ebay is on there! Great news for me! Quidco pay you a completed payment by cheque as soon as a month depending on company verification time.

There is even a section on freebies and printable vouchers for meals and such like.

All round a really great site!

Just one down fall though is that it can take from 28 days to 90 days depending on the product for your money to come to you so definitely not a quick get rich scheme but more like a saving for something idea.

Which bring me to their save £1000 challenge in a year. They help and advise you and send you the best deals first. They keep you up dated on how you are doing and pay you out when you reach your target. Brilliant saving money you didn’t have in the first place. AMAZING!

If I haven’t already plugged this site enough for you there is a little freebie that I found on the site to share with you but hurry it needs to be taken by the 27/2/10.

If you join QUIDCO and put it on your like list on Facebook you can claim a free £5 voucher for Prezzy box online gift shop which whilst having a flick through also seems a great site. Hey that’s another blog another day though!

Remember every penny counts, you can only ever spend it once so why spend too much?

Cheers Mrs Gxxx

The banks that cash in on your ID fraud fears by selling costly identity theft insurance

2011-02-25T08:19:00.000+00:00

Banks are cashing in on people's fear of fraud by selling costly identity theft insurance when customers activate credit cards.

Customers who think they are calling their bank are being put through to insurance salesmen.

They then describe how fraud is on the increase and encourage the customer to buy a policy for around £70 per year.

Rip off: Critics say the insurance is overpriced and totally unnecessary

Despite what most customers believe, many of these policies won't cover you for fraud losses. Instead, Card Protection Plan (CPP), the largest insurer, will just pay out up to £60,000 to cover any 'legal and communication costs' incurred after becoming a victim.

Critics say the insurance is overpriced and unnecessary, and point out that all banks must reimburse fraudulent transactions.

'Consumers do not need insurance to get protection from identity fraud,' says Michelle Whiteman, from the UK Cards Association. 'As long as you have not been negligent with your card or Pin, your bank will reimburse you for any losses.'

NatWest, RBS, Barclays, Barclaycard-Santander, Tesco, Yorkshire and Clydesdale banks all use CPP to sell fraud insurance to their customers. CPP pays banks a kickback every time it persuades someone to sign up, though it refuses to say how much.

Just 0.5 pc of CPP customers claim on their identity theft policy - that is one in 200. This compares to one in six drivers who claim on car insurance.

'When people ring up to activate their card, they rightly assume they are calling their bank, not a third party selling expensive insurance,' says James Daley, editor of Which? Money.

'Identity fraud is not as widespread as insurers make out. The risks are overstated and the insurance is far too expensive, given how few people make a claim.'

Identity fraud occurs when a fraudster obtains your bank details and uses this information to apply for credit in your name - for example, a loan or credit card.

In 2010, there were 102,500 cases of identity fraud recorded by CIFAS members, which include the main banks and building societies. While this was a small increase from 2009, it is a drop in the ocean given there are 137 million credit and debit cards.

Policies vary among banks - Barclaycard, for example, has Identity Protection Alert costing £69.99 a year. It is not designed to cover any losses from fraud, but to cover the costs associated with clearing your name' up to £60,000.

The insurance also provides online access to your credit report and email or text alerts when someone makes an application for credit in your name. It will also 'monitor where customers' data is visible online' in an effort to prevent fraud in the first place.

'We provide products that deliver peace of mind for consumers,' says a spokesman for CPP.

'Our resolution process with the support of a dedicated caseworker means any incidences of identity fraud are resolved quickly.

'In many cases, the customer does not have to claim on their insurance - however, it is there should the need arise.'

FREE FREE FREE. IN THIS FINANCIAL CLIMATE THIS WORD IS SENT FROM THE GODS!

2011-02-24T09:50:00.002+00:00

Especially when the word comes just in front of a few other really nice words... CUT AND FINISH.

Wow and it really is free too.

Littlewoods have launched their LW STYLE online magazine. Usual tips and trends. A splattering a celeb news and fashion. A fist full of gossip. Oh and most importantly A FREE HAIR CUT AND FINISH!

They have teamed up with THE HAIR GROUP which is a group of 120 independent hairdressers with this promotion. These salons also did a similar promotion with COSMOPOLITAN magazine a couple of years ago. THE HAIR GROUP Hairdressing salons are based all over the country so this really is for everyone. You don’t even have to be a member of Littlewoods to claim.

Simply go to the littlewoods link http://littlewoods.mymedia.co.uk/1C4d511e8163b80012.cde have a quick flick through and the advert we all want is on the back page!

You can only claim one per household but do it quick as it runs out at the end of February.

I today have claimed and booked my Free cut and finish. I can’t wait to see what they do with my mop. Not that i care just an hour or so away from the hustle and bustle of life and kids will do just nicely for me thanks!

Remember every penny counts, you can only ever spend it once so why spend too much?

Cheers Mrs G xxx MVX6B5ABCGST

Royal Bank of Scotland loss narrows as bad loans fall

2011-02-24T09:40:00.000+00:00

Royal Bank of Scotland, the UK bank which is 84pc owned by the Government, reported a narrower loss in 2010 as provisions for bad loans fell.

Chief executive Stephen Hester said the Government is unlikely to start selling its RBS stake until the Independent Commission on Banking's report is complete.

Edinburgh-based RBS reported a net attributable loss of £1.1bn for last year, down from £3.6bn in 2009. The pre-tax loss was £239m.

Stephen Hester, chief executive, also put the loss for the year down to a £1.55bn charge paid to the Governement's Asset Protection Scheme, set up at the height of the financial crisis, which RBS aims to exit by 2012.

Mr Hester said the Government was unlikely to start selling its stake in RBS until after the Independent Commission on Banking finishes its report into the sector, due by the end of September this year.

"RBS was an emblem of the financial crisis and it will be an emblem of recovery" when the Government sells its stake, Mr Hester said in a BBC radio interview.

"Its something we'll be working on this year, and hope that will provide opportunities for the Government in due course."

Mr Hester also admitted the bank is used a "political football", and said: "It can feel pretty beleaguered working at RBS."

The shares were down 2.5pc to 46.16p in early trading. RBS's shares peaked at 602.6p each in March 2007, falling as low as 10p in January 2009.

"RBS is clearly making progress from its former woes but remains a group in the grip of transition," said Richard Hunter, head of UK equities at stockbrokers Hargreaves Lansdown. "Even though the strategy has been laid out and is being slowly followed, less patient investors will look for more immediate prospects elsewhere in the sector."

The bailed-out bank also confirmed that, as expected, Mr Hester will take his £2m bonus for last year and that its investment bankers will take home around £950m in bonuses. That is £200m less than in 2009.

The compensation ratio across the bank fell to 17pc from 31pc last year, although in the investment banking arm the ratio increased to 34pc from 26pc last year, because revenues fell by £3.15bn.

One buyer for parts of the Government's stake in RBS could be the Gulf state of Qatar, after discussions with David Cameron, the Prime Minister.

RBS said it made an operating profit of £1.9bn in 2010, recovering from a £6.1bn loss the previous year, and returned to profit by all measures in the fourth quarter.

However the £1.1bn loss was worse than analysts were expecting - consensus forecasts compiled by Bloomberg were for a £406.5m loss.

That was due to losses on loans in Ireland, which almost doubled to £1.16bn last year. The Ulster Bank division lost £761m.

Overall, RBS's impairment charges on bad loans fell to £9.3bn during the year, down from £13.9bn in 2009.

"2010 was a year of good progress and the group is on or ahead of its published goals for this stage of our plan," Mr Hester said.

RBS is in the second year of a five-year recovery plan, after being bailed-out by the Government in 2008.

CUSTOMER SERVICES? Or are we really just talking to ourselves?

2011-02-23T08:05:00.000+00:00

Todays blog has to be one of my most favourite subjects. I do have a huge varied amount of favourites but this one is definitely in my top 5 .

Once apon a time, a long time ago the customer was always wearing a smile. The customer always got exactly what they were expecting with no small print to endure. The customer always was right and never ever would have to argue their point to maybe more than 6 people in 6 different countries at least 6 times over from the start. The customer would never be on hold accuring huge costs to their phone bill whilst in some cases earning money for the company they were complaining to. The Customer many many many fairy tales ago would never after a just complaint feel as if they were in the wrong.

Not so now though in 2011. Many of us everyday have something different to complain about. We all feel cheated at different times that what our very precious and hard earned money was spent on we feel we should get what we were told we would. We all have a choice where to spend our money and these companies really need to appreciate this.

So today I have compiled 10 top tips on complaining and getting exactly what you expected and even a little more for your trouble.

· Before you start make sure a pen and paper is to hand to take names and notes. Have an documentation is front of you. Always keep these things together you will definitely not only be calling once!

· Check out the companies complaints procedure. Check out their contact details. Sometimes an email or postal address is great to use in a complaint but keep copies of everything.

· CHECK OUT THEIR PHONE NUMBER. Some have premium rate lines and you end up getting more of a phone bill than what you wanted to get in the first place no matter how bad it made you feel.

· Remember be nice! People for some reason can’t always be rude to nice people.

· When phoning in a complaint always take their name and extension number. Be very clear to them about what has happen and how it made you feel.

· NEVER EVER TAKE NO FOR AN ANSWER. All of these companies at present use the word ‘NO’ as first port of call. Most people presume that is that and never deal with it again. Definitely not remember it’s your money they took in return for a not so good deal.

· Always try to get the customer service agent to come away from their script of ‘NO,NO, NO’ and try to get them to see it from your side, maybe even if it were them. They are all human even though sometimes it does seem a little like talking to a wall.

· If you get passed and passed on to other agents, repeating your story. Always let each agent know how that is making you feel. Remember these calls are recorded and can be listened to again. Not all agents note that they have even spoken to you but a recorded call doesn’t lie.

· When feeling frustrated and ready to give up with the whole thing ask to speak to a manager. Most times you will be told that there is not one available. Just like in all businesses across the country that run themselves with no managers. Keep asking and eventually you may even be told you will get a call back.

· Finally, never give up, keep going and always follow up promises from the company! It really does pay to do so. I mean most companies really don’t care to much who you are once you have paid so it’s your job to let them know!

So that’s my huge top 10 tips for complaining. Good Luck! It always works for me!

Remember every penny counts, you can only ever spend it once so why spend too much?

Cheers Mrs G x

Savers are 'losing interest' on Isas

2011-02-23T07:53:00.000+00:00

Savers are suffering 'dismal' rates of interest on their investments due to poor service from cash Isa providers, a study has suggested.

An investigation into 13 of the top providers examined how well their staff explained the rules regarding transferring money between cash Individual Savings Accounts.

If the rules are not followed, it may mean savers losing out on the tax-free accounts.

The report by Which? highlighted the ‘dismal’ rates of interest paid by some providers on their cash Isas and said ‘clear and accurate information’ about the switching process is important if the tax relief is not to be lost. The average rate on a cash Isa is 2.27 per cent, according to personal finance website Moneyfacts.

Nationwide received the best overall score while HSBC was ranked bottom of the pile.

Sarah Brooks, head of financial services at Consumer Focus, said: “Banks seem to be making a simple product unnecessarily complicated because of poor service, inaccurate or unclear information and inefficient systems which delay switching.

Asda Price Promise Money Back Bonanza

2011-02-22T09:45:00.002+00:00

Asda Offer Price Guarantee website.

This site is fabulous!

Not to mention really easy to use.

Of course I was very sceptical at first but after it had worked three times for a good friend of mine I thought I really must try.

Asda’s slogan ‘SAVING YOU MONEY EVERY DAY’ really does come into it’s own on this one.

Asda have a site www.asdapriceguarantee.co.uk where all you do is simply copy from you receipt details that they ask for. They then compare the prices on your Asda receipt to several supermarkets including the obvious Tesco, Sainsburys and Morrisions. Then also Waitrose and Ocado. Asda promise that if your shopping bill is cheaper anywhere else they will give you that amount plus 10% in a voucher.

Not only does the Asda receipt have to be cheaper than all the rest but actually has to be 10% or over cheaper.My own receipt was for £11.33 and I entered all the details quickly and simply. Surprisingly that day Waitrose was cheaper so I received a £0.97 voucher.

Brilliant!

I shall be doing this on every Asda shop and saving my vouchers together to get hopefully one big free shop!

There is only one down fall and that is that you have to wait until the next day to put your receipt in. So always remember to keep the receipt save for one whole day. Unlike what I usually do is either, screw it up and throw it into the depths of my handbag or leave it in the carrier bag where it will then be stuffed in a draw and never seen again until the dog goes for a walk in which case after cleaning up after the dog I would never try to fish the receipt from the bag!

Remember every penny counts, you can only ever spend it once so why spend too much?

Cheers Mrs G xxx

Halifax £500m in compensation

2011-02-22T07:47:00.002+00:00

Halifax mortgage borrowers £500m in compensation

Halifax is set to pay mortgage borrowers a total of £500m in compensation after it failed to inform 600,000 customers that it was increasing the cap on its standard variable rate (SVR) – the rate for borrowers who are not on a special offer. It expects to make payments to around 300,000 of these people.

The following Q&A explains which borrowers will benefit and what they have to do.

1. Does this affect me?

If you took your Halifax mortgage out following receipt of an offer between September 20 2004 and September 16 2007, you will have received a mortgage offer that had a summary of the cap on the SVR.

If you remained had the same mortgage on January 1 2009, you are affected and will be sent a letter during April. The content of that letter will depend on your individual circumstances.

2. Will I get a goodwill payment and how much will it be?

Halifax said it could not yet confirm how individual customers would be affected. It said customers did not need to take any action at this point. If you are affected, the letter will explain whether or not a payment will be credited to your mortgage, and what the value of that payment will be.
The money individuals will receive will be based on the difference between repayments if the SVR had been 2 percentage points above Bank Rate and the 3 points above Bank Rate that it was charged at.

3. How will Halifax decide who gets a goodwill payment?

Payment will be made to customers who received a Halifax mortgage offer between September 20 2004 and September 16 2007, and have been paying the SVR at any point since January 1 2009.

4. What if I want to transfer to a new product now? Will I lose any entitlement I might have to a goodwill payment?

No. If you are entitled to a goodwill payment, transferring to a new product will make no difference.

5. What about affected customers who have now left the Halifax?

These ex-customers will also receive a letter from the bank.

6. Why did Halifax increase the SVR cap?

It changed the cap in October 2008 because of significant increases in its cost of borrowing the money it lent to mortgage customers. It said the mortgage terms and conditions allowed it to do this.

7. If I’m entitled to a goodwill payment but my mortgage is in arrears, will I still get it?

Arrears won’t stop you receiving a payment but any sum you do get will reduce the arrears balance first.

8. How can I find out more?

Halifax said customers with further questions could call 0800 1412146.

9. What about other companies in the same group as Halifax?

Halifax is part of Lloyds Banking Group, which includes brands such as Lloyds TSB, Birmingham Midshires, Bank of Scotland, Intelligent Finance, Scottish Widows Bank and the AA. A spokesman said customers of all other brands within the group were unaffected; the problems with the SVR related only to Halifax-branded mortgages.

Confidence Returns To Spanish Property Market.

2011-02-21T12:48:00.000+00:00

Confidence returning to spanish property market

Confidence is gradually returning to the Spanish property market as holiday home buyers take advantage of the market.

The feeling is that it's finally bottomed out and developers are beginning to start new projects. In some parts of Spain prices have dropped by 50% and are back to the level they were 10 years ago, and the many believe they cannot drop any further.

Buyers are finding great bargains as some are sold fully furnished and ready to let, and as they are in well-established areas they are easier to mortgage. There is also likely to be greater demand for holiday rentals this year due to the troubles in Egypt; low cost airline Jet2.com has just announced it is replacing its suspended Egypt programme with extra flights to Spain and Portugal.

The opening of the new international airport at Murcia City is certainly expected to improve the property market in Costa Blanca and two property developers have already announced new plans for residential projects. Some local estate agents are wondering if they are being a bit too optimistic as they are seeing little demand for of plan property. Much of the interest in this area is being generated by the new Paramount theme park but building work has yet to begin on this attraction.

In order for confidence to fully return to the property market and for the Spanish economy to improve, unemployment levels need to fall and the Organisation for Economic Co-operation and Development has said reducing unemployment is the key to recovery. Unemployment levels vary widely across Spain but are being exacerbated by the property market, although the Paramount theme park is expected to generate much needed jobs.

Property Market Heading for Further Crash UK housing market faces paralysis, warns Rightmove

2011-02-21T11:03:00.001+00:00

UK housing market faces paralysis, warns Rightmove

A recovery in sales is a long way off, Rightmove says

Most of the UK property market faces "paralysis" this year, says the estate agency website Rightmove.

The company claims to advertise 90% of all properties for sale on behalf of local estate agents.
It says many sellers are refusing to drop their prices, with the price of newly-advertised properties in fact rising by 3% in January to £230,000.
That was £65,000 above the average selling price of £165,000, according to the England and Wales Land Registry.
Rightmove said the seizing up of the market was mainly due to a lack of mortgage finance for would-be buyers, and the erosion of equity in their homes due to falling prices.
But Miles Shipside, Rightmove spokesman, said another factor was the reluctance of sellers to drop their prices, despite the lack of demand for their homes.
"Unwilling or unable to drop their asking prices to bargain basement levels - this helps explain why new sellers' average asking prices remain broadly static year-on-year," Mr Shipside said.
"New sellers see comparable properties to theirs on the market so they and their agents try a similar asking price.
"Without a really pressing need to sell you can see why price re-adjustments seem painfully slow in many local markets and they will not fall by enough to really assist the return of mass market affordability," he added.
'Locked out Mr Average will be left out in the cold”

Miles Shipside Rightmove

Property market commentator and estate agent Henry Pryor argued that sellers were deluding themselves.

"Sellers seem to completely have misread the market and increased asking prices at a time when sale prices are actually falling," he said.
"Just 43% of sellers found a buyer last year and it looks like 2011 will be even tougher.
"We started this year with nearly 1 million homes on the market and with even more piling on, the chances of your home selling in the next 12 months looks like it has fallen below 40%," Mr Pryor added.
Rightmove predicts that 2011 will see many buyers continue to be locked out of the market.
"Mr Average will be left out in the cold in the buying and selling game unless the beneficiary of a hereditary hand-out," said Mr Shipside.
"The mass market is unlikely to recover to former volumes without the return of healthier access to credit, so continuing falls in the percentage of owner-occupiers and a consequent growth of the rented sector is the realistic prospect," he added.