Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  London Stock Exchange  >  Homeserve plc       GB00B587FC42

Mes dernières consult.
Most popular
News SummaryMost relevantAll newsSector newsTweets

Homeserve plc : Cost Of Homeownership To Rise 6.4 Per Cent In Next Quarter

share with twitter share with LinkedIn share with facebook
share via e-mail
03/19/2013 | 05:44pm CEST
COST OF HOMEOWNERSHIP TO RISE 6.4 PER CENT IN NEXT QUARTER New HomeServe Homeownership Index reveals ever-increasing squeeze of family finances

- Cost of homeownership anticipated to rise 6.4%t in next three months
- Cost satellite television among only expenses expected to fall
- More than a third of homeowners find running a property less affordable than three months ago

Friday 15 March: Spring may have sprung, but Brits are bracing themselves for the cost of homeownership to soar further, despite the promise of milder weather, new research from HomeServe reveals.

The inaugural Cost of Homeownership Index - a major quarterly study of household costs and expenditure - finds that Britons anticipate spending on their homes to increase by 6.4 per cent in the next three months, with more than a third expecting running costs to become less affordable than in the previous quarter.1
The Index lays bare the average running cost of a UK property, based on a range of necessary outgoings - including rent and mortgage payments, utilities, TV and broadband, and general repairs and maintenance - as well as unexpected emergency expenses.
It reveals that Britons expect the cost of homeownership to reach £1,551.99 a quarter - up from £1,454.00 in the previous three months. Measures such as mortgages and rent, gas, water and electricity, and even cleaning and gardening are all anticipated to increase, with nationwide falls largely anticipated in satellite or cable TV subscriptions, as homeowners potentially look to shift provider or downgrade packages after Christmas, and winter-related outgoings, like home maintenance and emergencies.
There is considerable regional variation within the findings as households in London are braced to face the highest increases - of a massive 16.7%, from £1,494 to £1,743, fuelled largely by the expectation of hefty mortgage rises. Meanwhile, those in the East of England are actually anticipating a 4% fall, from £1,406 to £1,350.
The research also highlights the pressure this puts on already stretched family finances. Some 37% of households find running their home less affordable than it was just three months ago - with one in 10 (9%) finding it a lot less affordable. And with average household take-home pay at £2,645 a quarter, once non-housing related costs of £1,240 are also taken into account2 it is clear just how tight incomes are being squeezed.
As a result, three in 10 (30%) admit they would struggle to afford any emergency outgoings, which added an average of £96.24 to core outgoings in the previous three months alone.
Indeed, six in 10 (60%) homes have nothing put away for emergencies, putting them one unforeseen disaster away from serious financial problems. And should a household disaster strike, more than one in two would be forced to raid their savings (56%), with a fifth (19%) putting it on a credit card and 13% having to borrow money.
However, the experiences of households who faced emergencies in the previous quarter suggest it may not be this simple. Only one in three (32%) actually were able to use their savings while just 15% could turn to a credit card, a possible reflection of many households' restricted access to credit - not to mention the commonplace practice of tradesmen not accepting card payments. Instead, 38% were forced to pay for it out of their monthly salary, potentially creating serious financial problems.
HomeServe Memberships CEO Jonathan King said: "With this new Homeownership Index, we hope to provide a clear picture of
the changing state of household finances across the UK. Already, a surprising picture has emerged of the number of households in the UK who are unable to afford the cost of an unexpected emergency as part of their monthly income. This underlines the importance of planning ahead. With money tight, many of us don't have the buffer of savings, credit or disposable income to protect ourselves against unforeseen outgoings. This is when home emergency insurance can make all the difference.
"As the research continues to be built upon in the coming months, we hope to see where homeowners' money is being spent, as well as where people's budgets are being squeezed the most."

Household spending by quarter:

Predicted next quarter

(Spring: March-May)

Last quarter

(Winter: Dec-Feb)

Expected change





share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on HOMESERVE PLC
07/22 HOMESERVE : Thousands of customers signed up by HomeServe
07/21 HOMESERVE : Trading Update
07/12 HOMESERVE : UK's favourite chief executive started out as a groundsman
07/06 HOMESERVE PLC : ex-dividend day for final dividend
06/27 HOMESERVE : Evansville Water & Sewer Utility Selects HomeServe USA to Offer Opti..
06/23 HOMESERVE : boss 'humbled' at top rating
06/20 HOMESERVE : CEO to join Vélo ride
06/15 HOMESERVE : boss saddles up FORVÉélo
06/13 CENTRICA : rival plan
06/13 HOMESERVE : New chamber vice-president
More news
News from SeekingAlpha
2015 Stock Picks Review And Lessons Learned
Financials ( GBP)
Sales 2018 870 M
EBIT 2018 136 M
Net income 2018 86,5 M
Debt 2018 164 M
Yield 2018 2,40%
P/E ratio 2018 25,07
P/E ratio 2019 22,63
EV / Sales 2018 2,74x
EV / Sales 2019 2,50x
Capitalization 2 220 M
Income Statement Evolution
Mean consensus HOLD
Number of Analysts 9
Average target price 7,38  GBP
Spread / Average Target 3,9%
EPS Revisions
Richard David Harpin Chief Executive Officer & Executive Director
John Michael Barry Gibson Chairman
Johnathan Richard Ford Group Chief Operating Officer & Director
David Jonathan Bower Chief Financial Officer & Director
Mark Christopher Morris Senior Independent Non-Executive Director
Sector and Competitors