POUND NOTES
BUY NOW, PAY LATER USERS STRUGGLE TO REPAY CHRISTMAS SPENDING
A FIFTH (20%) of shoppers who used buy now, pay later (BNPL) schemes over Christmas will be unable to meet their repayments without borrowing more money, a survey suggests.
The average amount spent by BNPL consumers during Christmas 2020 was £211, slightly up from £201 in 2019, comparethe market.com found.
The highest average spend was by those aged 45 to 54, at £277.
More than two-fifths (44%) of UK adults who used a BNPL scheme to fund their Christmas shopping are now concerned about their ability to repay, the research found.
James Padmore, head of money, comparethemarket.com said: “When used responsibly, buy now, pay later schemes can be an effective and alternative way to spread out the payments of large purchases.
“It’s easy to see why it’s popular at a time like Christmas when people may be spending larger sums than usual.
“However, the ‘I’ll deal with it later’ attitude to using this type of financing may mean that some people are now really feeling the strain.”
More than 2,000 people were surveyed across the UK in January for the study.
AVERAGE HOUSE PRICE FALLS BY 0.3%
THE average house price slipped by 0.3% in January, marking the biggest monthly fall since April last year, according to an index.
Across the UK, typical property values stood at £251,968 in January, Halifax said.
This was a 5.4% annual increase compared with January 2020.
Halifax managing director Russell Galley said: “The average UK house price slipped by 0.3% in January, the biggest monthly fall since April last year.
“Whilst this pushed the typical property value down to its lowest level since October, at just under £252,000, prices are around £13,000 higher than a year ago.
“There are some early signs that the upturn in the housing market could be running out of steam, with the annual rate of house price inflation cooling to its lowest level since August.”