Figures from the Office for National Statistics (ONS) revealed the UK economy has exited its longest recession since records began, with GDP growth of 0.1% in the final quarter of 2009.

The economic growth in the UK had decreased for the previous six straight quarters. The UK GDP is now 6% lower than it was at its peak in early 2008.

However, the figures will be revised by the ONS in the coming months as more data becomes available and could be reduced to 0% or less.

Britain is the last G20 country to leave recession, with many European economies seeing economic growth in mid-2009.

Output for business services and finance industries is thought to have been flat during the final three months of 2009.

Emilio Botín, chairman of Banco Santander, said: “This is a historic day for Santander as its name is firmly established on the UK high street.

“When Santander acquired Abbey in 2004, there were some who doubted we could make it a success. Today, there can be no doubts. Over the last five years we have transformed our UK business into one of the most successful banks in the country. The decision to become Santander will put us in an even stronger position the UK.”

The National Employment Savings Trust – NEST – has been unveiled as the new brand name for Personal Accounts.

 The NEST Corporation will be the name of the trustee body running the scheme. The name of the scheme was announced by Pensions minister Angela Eagle.

 NEST is the scheme being introduced, in stages, from October 2012. The Government-implemented scheme is being created to provide a low-cost, independent, workplace pension scheme which any employer can access. The Government created the scheme to give millions of mainly low to middle income workers access to an employer sponsored scheme. NEST accompanies the introduction of auto-enrolment into a qualifying workplace pension scheme from 2012.

 Occupational schemes set up by firms can be used to auto-enrol workers if they meet certain criteria. However, the employer can use personal accounts as an alternative for all, or part, of their workforce.

 National Association of Pensions Funds chief executive Joanne Segars says: “We all need a pensions nest egg to enjoy a comfortable retirement. Already almost 12 million people are saving in a workplace pension with contributions from their employer. Today’s announcement brings us a step closer to the 2012 reforms when nearly all working people, especially those on low and moderate incomes, will be given this opportunity.”

 Hargreaves Lansdown head of pensions research Tom McPhail, adds: “I am optimistic that NEST will have a positive impact on the UK’s retirement savings and that it will help millions of non-savers to build up a decent retirement pot.’ The key message is don’t delay. Enrolment into NEST won’t be fully up and running until 2017 and every year of delay means a lower eventual pension. Don’t wait for your employer or the government to take the initiative, start saving for retirement today,”

 A full-roll out of the scheme, which requires all employers to enrol their staff into a pension plan, had been due to start in 2012. But a series of political setbacks have seen the plans delayed twice. In December’s Pre-Budget Report, the Chancellor announced a phased introduction of the scheme for smaller employers would be extended from a 2015 finish to a 2017 start.

 The move followed a Government decision in October to scrap a blanket roll-out of the scheme in favour of a phased approach, with only the largest employers being forced to start the scheme in October 2012. Smaller employers had then been expected to join the trust-based occupational pension scheme over the following three years.

The £125,000 threshold for when you start to pay SDLT was introduced again on 1 January 2010. The previous starting rate was £175,000 – for purchases made between 3 September 2008 and 31 December 2009.

If you buy a property in the UK over a certain purchase price you have to pay Stamp Duty Land Tax (SDLT). This is charged on all purchases of houses, flats and other land and buildings.

If you buy either a freehold or a leasehold property and the purchase price is more than £125,000, you pay SDLT of between one and four per cent of the whole purchase price. If the purchase price is £125,000 or less you don’t pay any SDLT.

See the table below for more detail.

SDLT Disadvantaged Areas Relief

If you buy property in an area designated by the government as ‘disadvantaged’ you may qualify for Disadvantaged Areas Relief. In this case the threshold for SDLT is £150,000.

Disadvantaged Areas Relief did not apply for residential property purchases between 3 September 2008 and 31 December 2009 inclusive. The threshold during that period was £175,000 which is higher than the previous Disadvantaged Areas Relief threshold. You can check the HMRC website to see if the property you are buying is in an area designated as disadvantaged.

According to a Nationwide report House prices rose in all regions except Northern Ireland during the fourth quarter of 2009, southern regions continued to experience stronger growth than northern regions and London saw the strongest growth in the quarter and also over the year. 
 
Commenting on the figures Martin Gahbauer, Nationwide’s Chief Economist, said:
“The final quarter of 2009 saw a slowing in the quarterly rate of house price growth across the majority of UK regions, but most regions ended the year with average prices higher than at the end of 2008. For the UK as a whole, prices rose by 1.6% in the fourth quarter, leading to an increase in the annual rate of change from -3.0% in the third quarter to +3.4%.

“Greater London was the best performing region in the quarter; prices rose by a seasonally adjusted 3.4%. This increase pushed the annual rate of change up from -1.9% to 7.0%, making London the best performing region over 2009.

“Outside of London, the East Midlands saw the strongest quarterly performance within the English regions, with a 2.8% rise in prices over the quarter, bringing the annual rate of change up from -5.4% to 2.5%. The Outer Metropolitan and Outer South East regions continued to see above average growth in the quarter and were the second and third best performing regions, with annual growth of 6.4% and 5.5% respectively.

“The northern regions generally saw weaker growth, in particular the North where prices rose just 0.4% in the quarter. The North was also the only English region not to see prices rise across the year as a whole, with an annual price change of -2.0%.

“House prices in Scotland rose 1.9% during the quarter, slightly above the UK average. This was enough to push the annual rate of change into positive territory, with prices up 1.0% compared to the fourth quarter of 2008. Quarterly price growth in Wales remained relatively weak in the fourth quarter, with a 0.9% rise recorded, leaving average prices marginally lower than one year earlier.

“Reversing the large increase seen in the third quarter, prices in Northern Ireland fell by 6.8% in the fourth quarter. On an annual basis, house prices were down 6.7%, a modest improvement from the 8% year-on-year fall in the third quarter. Northern Ireland remains the worst performing UK region.

Wales top performing UK country over last decade

“Despite the sharp house price falls seen in 2008 and the first half of 2009, the 2000s has generally been a very strong decade in terms of house price growth. In nominal terms, house prices in the UK rose 117% between 1999 Q4 and 2009 Q4. Taking into account overall retail price inflation over the period, prices have risen by 68% in real terms, the strongest decade on record. This compares with a 14% fall in real terms during the 1990s.

“Wales has been the top performing country over the 2000s; house prices have risen 82% in real terms.  This sharply contrasts with the 1990s, where Wales saw prices fall by 24% in real terms.

“England overall has seen the weakest growth over the 2000s of 65%, although this has varied widely across the regions. Within England, Yorkshire and Humberside has seen the strongest growth, with prices rising 84% in real terms, whilst the Outer Metropolitan region has experienced the weakest growth, with a 51% increase.

The strong growth seen in Yorkshire and Humberside might reflect that it started the decade as one of the most affordable regions, with a house price to earnings ratio of 3.0 (compared with the UK average of 3.6 in 2000 Q1).

“Whilst the strong housing market performance of the 2000s is good news for homeowners, it is less positive for those looking to get on the housing ladder. Affordability has improved since the peak in house prices in 2007, but we will enter 2010 with house price to earnings ratios across the regions at a much higher level than the start of any other decade.”