What the papers are saying this week
The chancellor's euro non-decision is good news for housing, if you ask the Royal Institution of Chartered Surveyors. An RICS survey published in the Sunday Telegraph found that euro entry in 2005 would send house prices rocketing 28% in 2006. It said variable mortgages, low supply and high homeownership made the UK more vulnerable than other countries to interest rate changes. Right on cue, Brown said the housing market needed reform.

On pensions, the government gave with one hand while taking with the other. On 11 June, The Financial Times said the Department for Work and Pensions was investigating compulsory insurance for final salary pension schemes. It is expected that the scheme would cover no more than 90% of an individual's pension and the most underfunded schemes would pay the highest premiums.

But the very same day, the FT said work and pensions minister Andrew Smith was poised to cut the rule protecting final salary pensions against inflation.

He plans to scrap the rule requiring payments to be adjusted by 5% or inflation, whichever is lower. With current low inflation , ministers believe the rule imposes unnecessary costs.

Source

Housing Today