Money blog: The feature that can add up to £52k to your house price - and this will go up (2025)

Leeds Building Society is increasing the maximum amount first-time buyers can potentially borrow.

The building society says aspiring homeowners with a minimum household income of £40,000 may now be able to borrow up to 5.5 times their earnings.

Its previous maximum loan-to-income ratio was 5.25 for first-time buyers and 4.5 on its standard mortgage lending to other borrowers.

Based on its lending during spring and summer this year, the society estimates that first-time buyers could potentially borrow up to £52,000 more on average than it lent previously.

It comes ahead of stamp duty changes in England and Northern Ireland from April, which will reduce the "nil rate" stamp duty threshold for first-time buyers to £300,000 from £425,000.

More than half of British employers plan on cutting jobs and raising their prices in response to Labour's first budget, a Bank of England survey has found.

Data compiled by the Bank shows 59% of firms expect to lower their profit margins to cope with the increase in national insurance contributions announced by Rachel Reeves.

In all 54% said they expected to raise prices and the same proportion said they would lower employment, while 38% expected to pay lower wages than they otherwise would have done.

Bank of England boss Andrew Bailey said earlier this week that the way businesses react to the NI hike is the "biggest issue" after the budget.

He also warned that economic uncertainty was rising in the UK and globally.

In her budget, Ms Reeves announced that the rate of employer national insurance would rise from 13.8% to 15% in April next year.

The secondary threshold, meaning the level at which employers start paying the tax on each employee's salary, will also be reduced from £9,100 a year to £5,000.

Many supermarkets and big businesses have since said they will be hit hard by increased costs, which they could end up passing on to employees and customers.

The governor of the Bank of England has said that he expects there to be as many as four interest rate cuts in 2025.

Speaking to the FT, Andrew Bailey welcomed recent drops in inflation and said the cuts would follow should the outlook for the economy bear out.

The Bank's economic forecast suggests that four quarter-point cuts could come, with Mr Bailey saying: "We always condition what we publish in terms of the projection on market rates, and so... that was effectively the view the market had.

"We've been looking at a number of potential paths ahead - and some of them are better than others."

Debenhams has reported a profit as its new marketplace model shows promise.

The now online-only department store reported a pre-tax profit of £3.27m in the year to 29 February - up from the £721,000 loss it reported the previous year.

Debenhams was bought by Boohoo in 2021, which relaunched the brand as an online marketplace.

Dan Finley, chief executive of Debenhams andBoohoo Group,said:"Debenhams is an iconic British heritage brand. We bought it out of administration and are making great progress transforming it into Britain's online department store.

"The marketplace model is stock-light, capital-light and highly profitable, as these results show."

Aldi's "premium" roast potato range has come joint top in a blind taste test.

"We recruited a panel of people who regularly buy and eat roast potatoes, and who broadly represent the demographic profile of adults in the UK," consumer Which? said.

The results

The 65-strong panel gave Aldi's "Specially Selected Beef Dripping Roast Potatoes" an overall score of 74% satisfaction - and coming in at £2.49 per 1kg bag, they're also great value.

Three-quarters of the panel "were fans of the fluffy interior", while two-thirds "loved the crispy outsides".

Tying with Aldi was M&S's "Maris Piper Roast Potatoes".

These are a touch more expensive - and for a smaller bag - at £3 per 800g bag.

Aldi and M&S beat off competition from Waitrose (70%), the Co-op (70%), Tesco (71%), Sainsbury's (71%), Morrisons (71%) and Asda's potatoes (68%).

In last place was McCain's "Triple Cooked Roasts", with a score of 60%.

By Sarah Taaffe-Maguire, business and economics reporter

The French political crisis has failed to spook markets, with the euro, benchmark French stock market index the CAC 40 and the country's borrowing cost all relatively unchanged or faring better than in past days.

While Michel Barnier, the prime minister, last night lost the no-confidence vote, uncertainty over his future and the administration of EU's second-largest economy had been moving markets for weeks.

Today, borrowing for the French state, as measured by the 10-year bond yield, is actually cheaper than at most points in the past two months.

The euro is weak against the pound, spelling good news for Britons buying things in euro or heading on holidays to the continent. One pound buys €1.2077, not far off a two-year high. Against the world reserve currency, the dollar, the euro is at about the same place ithas been for the past week, worth $1.05.

Back in Britain, another big business is hitting out at the budget.

This time it's the turn of Frasers Group, the owner of Sports Direct and Flannels.

It's had about £50m added to its costs as a result of upped employer national insurance contributions and higher minimum wages announced in the budget.

It felt like it had been "kicked in the face", its finance chief said this morning.

Local counsellors in Rome have come up with a concept that would see restaurants in the city agree to limit the price of some of the country's most popular dishes.

Nicknamed "the carbonara pact", restaurants that voluntarily sign up will be issued with a special sticker from the city hall that tourists can trust.

The idea was championed by Luigi Gabriele, the president of Consumerismo, a consumer advice association, who said: "Whoever sells an overpriced carbonara that tastes disgusting is committing a crime against the stomach and against the economy."

He's suggested the price should be fixed at €12-€14.

His motion also calls for stricter checks on restaurants when it comes to advertising their prices generally to protect customers from paying over-the-odds.

Sales of no and low-alcohol beers in pubs are soaring, with 80% of venues offering alternatives to make money from demand.

Pubs are expected to sell a record 140 million pints of low and no-alcohol beer across the UK this year, according to the British Beer and Pub Association (BBPA).

That's up from more than 120 million last year.

Of the 86% of pubs now serving the alternatives, 8% are serving it on draught, a rise from just 2% in 2019.

The increasing range of options for drinkers means the pub is "even more inclusive and welcoming than ever before this festive season", the BBPA said.

The trade association is calling on the government to bring existing thresholds for no and low products with that of other countries, to help drive sales and boost the economy.

Chief executive Emma McClarkin said: "Whether someone is choosing moderation, keeping pace with many Christmas festivities, or just doesn't drink alcohol, these sales show brewers and pubs are catering to all."

Gopuff has announced it will operate a 24-hour service onChristmasDay and Boxing Day in several UK cities, when most supermarkets are closed.

"With most UK supermarkets closed on Christmas Day and operating at limited hours either side, Gopuff is the perfect solution for any late-night or last-minute essentials - whether it's festive treats, groceries or even emergency supplies," a Gopuff spokesperson told The Grocer.

Stores in these locations will have the 24-hour service:

• London
• Cambridge
• Salford
• Swansea
• Liverpool
• Newcastle
• Bristol
• Leeds
• Manchester
• Birmingham
• Cardiff
• Coventry
• Nottingham
• Derby and Sheffield (until 2am each day)

The owner of Guinness is understood to have placed limits on pub and bar purchases of the Irish-made stout in the UK after a rush in sales, which has reportedly sparked some panic buying ahead of Christmas.

The number of kegs that can be ordered from the Diageo-owned brand was being "managed", the company said in response to a request for a statement by Sky News.

The Times, which was first to report on the rush, said the recent spike in demand was understood to be linked to so-called Guinnfluencers' bolstering the drink's popularity among women.

A run of rugby union internationals during November was also blamed for stoking unprecedented sales growth ahead of the key festive season.