The Bank Of England has decided to keep the interest rate at 0.5% for the fifteenth month in a row.

The  200 billion pounds of quantitative easing scheme remains unchanged as analysts predicted.

The freeze was expected to remain until the extent and scale of the government’s spending cuts programme is announced in the June 22 budget.

According to Nationwide, average house prices have increased in May by 0.5% (month on month). With the annual rate of house price inflation now 9.8%, compared to May 2009.

Martin Gahbauer, Nationwide’s Chief Economist said:

The price of a typical UK property rose by a seasonally adjusted 0.5% month-on-month (m/m) in May, following a 1.1% increase in April.  The smoother 3 month on 3 month rate of increase rose from 1.1% in April to 1.7%, as February’s fall in house prices dropped out of the most recent three month average.  The annual rate of house price inflation dropped from 10.5% to 9.8%, which reflects the weaker pace of increase in May 2010 relative to May 2009.  Since reaching a trough in February 2009 – following a drop of 19.3% from their October 2007 peak –  house prices have risen by 12.2% and are now just 9.5% below the October 2007 peak.

“Housing market conditions remain characterised by thin transaction volumes and a relative scarcity of properties for sale, despite a slow return of more sellers in recent months.  The current supply-demand balance on the market is still consistent with relatively stable to modestly upward trending prices.”

1 Stop Financial Services will be attending the Harlequin Hotels & Resorts pre-opening launch of Buccament Bay Resort, at Wembly Stadium on 24^th & 25^th April 2010.

 Buccament Bay Resort, on St. Vincent & The Grenadines in the Caribbean, will open in July this year. 

 Harlequin Hotels & Resorts offer superb investment opportunities in a hotel style investment based in the Caribbean. The complex’s offer a luxurious 5 star facility which includes golf and spa investments.

 Private investors have the opportunity to invest in a commercial resort ranging from studio apartments to 6 bedroom luxury villas, off-plan at well below market value. Rewarding investors with high capital appreciation and excellent short and long term returns on investment. In addition this investment can be purchased using monies in your pensions via a SIPP.

 Andy Rees & Tim Hughes will be available at the pre-launch to speak to clients on how they can use their pension funds to invest in a Harlequin Property, via a Self Invested Personal Pension (SIPP).

 This investment opportunity offers investors:

• Full ownership of the freehold
• 10% rental guarantee for the first 2 years – followed by 50% net room rate share
• No Capital Gains Tax or Inheritance Tax
• 30 days FREE use per year (not available if property is bought through a SIPP)
• £1,000 reservation fee, followed by a 30% deposit within 56 days and nothing else to pay until completion
• The resorts in the Caribbean are managed by Oasis Hotels
• Endorsed sports academy by Liverpool FC, Pat Cash and Gary Player

To find out more about investing in a hotel resort contact 1 STOP Financial Services for a FREE consultation. www.1sfs.co.uk (01437) 767110.

According to Moneyfacts.co.uk, the Bank of England has admitted that they are concerned about the rise in inflation, which is currently at 3.4%, well above the government’s 2% target.

Recent figures revealed that inflation increased from 3.0% in February to 3.4% in March.

Minutes from the Monetary Policy Committee’s (MPC) monthly meeting revealed that inflation is likely to stay above the long term target of 2% for some time yet.

The MPC said “Given that a period of above-target inflation was in prospect at a time when monetary policy was exceptionally accommodative, this was a source of concern for some members.”

Recent research conducted by Moneyfacts.co.uk found. rising inflation is hitting savers in the pocket.

A basic rate taxpayer now needs to find a savings account paying at least 4.25% in interest to prevent their savings pot being eroded, of which there are currently just 44 available on the market.

For a higher rate taxpayer, the challenge is to locate a savings account rate of 5.64%, a return only currently available through four accounts. It comes at a time when interest rates are at an historic low, further penalising savers.

Minutes from the MPC’s meeting also revealed that the decision to freeze the base rate of interest at 0.5% – a level that level the measure has been marooned at since March 2009 – was taken unanimously.

 To review your savings and investment plans contact 1 STOP Financial Services for a FREE consultation. www.1sfs.co.uk (01437) 767110.

The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%.  

 The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion.

The base rate has not changed for over 12 months with the last change on 5 March 2009 with a reduction of 0.5 percentage points from 1.0% to 0.5%.  

A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009.  The most recent change in the size of that programme was an increase of £25 billion to a total of £200 billion on 5 November 2009.

With the timing of the General Election the next Monetary Policy Committee meeting will conclude on the morning of Monday 10 May, with the decision announced at 12 noon.  The Inflation Report will be published as originally scheduled on Wednesday 12 May.

Information on the Asset Purchase Facility can be found on the Bank of England website at http://www.bankofengland.co.uk/monetarypolicy/assetpurchases.htm.

The Bank will continue to purchase high-quality private sector assets on behalf of the Treasury and financed by the issue of Treasury bills, in line with the arrangements announced on 29 January 2009.

Tim, Andy and their wife’s had a very enjoyable evening attending the Radio Pembrokeshire Local Hero Awards on Thursday 25^th February. 1 STOP Financial Services sponsored the Volunteer of the Year and were delighted to spend the evening with the winner Jenni Blair.

 It was very humbling to be at the presentations where local people of all ages were presented with the following awards:

Contribution to the Community Award with Chevron, Pembroke Refinery

• Youth Group of the Year with McDonalds
• Outstanding Bravery Award with The Tenby Observer
• Young Achiever of the Year with Milford Haven Port Authority
• Good Neighbour Award with The Giltar Hotel, Tenby
• Volunteer of the Year with 1 Stop Financial Services, Haverfordwest
• Young Carer of the Year with West Wales Properties
• Adult Carer of the Year with Harris Brothers Tyres
• Contribution to Charity Award with Murco
• Adult Achiever of the Year with South Hook LNG
• Dad of the Year with Folly Farm
• Mum of the Year with Folly Farm

The evening was hosted by Ben & Gareth from Radio Pembrokehire who both done a fantastic job of keeping the evening flowing.

1 STOP Financial Services are very pleased to be associated with the awards and support the local hero’s in our community, for the hard work and dedication they provide.

The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%.  The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion.

After a substantial fall in output, the United Kingdom economy recorded sluggish growth in the final quarter of 2009.  Spending by households appears to have picked up a little, though that may partly reflect temporary factors.  The rate of decline in businesses’ investment spending appears to have eased.  And the world economy continued to recover, raising the demand for UK exports.

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.”