Personal Money · Thursday, 5 November 2026

UK interest rate rises to 4%: about 500,000 tracker mortgages pay some £31 more a month at once, and savers may earn more

29 stories 44 sources

Signals on this beat

The bar and the word are our reading of how hard each one is pushing, and the arrow is where it is heading.

Energy lifting prices High↑

UK prices rose 3.5% in a year, and the Bank of England expects around 5%. [7]
Energy in the eurozone, the countries using the euro, cost 20.8% more than a year earlier. [8]
Italy's yearly price rise jumped to 5.6% from 4.2%. [8]

Home loans getting dearer High↑

New UK five-year fixed rates averaged 5.99%, against 1.30% five years ago. [1]
Purchase applications in the US fell 19% in a year as rates sat at 7.3%. [20]
Savills, a UK property firm, sees prices falling 1.5% in 2027. [4]

Rents outrunning pay Building↑

Australian nurses on full-time minimum pay can afford 1.1% of rental listings. [19]
Students in Europe living away from home spend almost 40% of their income on housing. [31]
Washington, DC buyers face a 25% gap between earnings and what a home needs. [30]

Firms mishandling people's money Building↑

US student loan firms billed some borrowers too much and added interest wrongly, lawmakers say. [14]
Britain's energy regulator is investigating ScottishPower over catch-up bills and vulnerable customers. [16]
Revolut, a digital bank, held a UK couple's £37,000 deposit for nearly three weeks. [32]

Prices that depend on who looks Steady→

The same pizza costs £20.95 in one London district and £22.95 in another. [35]
Hotels beat their online price in 4 of 5 phone or email tries by Which?, a consumer group. [34]
US card lenders passed on 20% less of a fall in their costs in 2008 where their market share was large. [36]

The stories

29 stories on this beat today.

Every story told the same way: what happened, who is involved, why it matters, how it works, the truth and the good news.

01
UK interest rate rises to 4%: about 500,000 tracker mortgages pay some £31 more a month at once, and savers may earn more

£31

more a month on a typical tracker mortgage

about 500,000 UK homes pay it straight away [2]

87%

of UK mortgage-holders are on fixed deals

their payments do not change until the deal ends [2]

5.99% against 1.30%

average five-year fixed rates: this week and five years ago

the 1.30% was the 10 biggest lenders' remortgage average [1]

4.48%

average rate for locking savings away for a year, on 4 November

an easy-access account averaged 2.58%, Moneyfacts says [5]
What happened
- The Bank of England raised its rate from 3.75% to 4% on Thursday, its first rise in over three years. [1]
- That rate is what it charges banks to borrow, and it steers what they charge on mortgages. [1]
- About 500,000 UK homes on tracker mortgages pay more now: about £31 a month on a typical loan. [2]
- Savers could earn more, because that rate also steers what banks pay on savings. [1]
- A tracker mortgage is a home loan whose rate moves up and down with the Bank's rate. [3]
- Another 500,000 or so homes on standard variable rates must wait for their lender to decide. [2] A rise would typically add £14 a month. [2]
- But 87% of mortgage-holders are on fixed deals, and their payments stay the same until the deal ends. [2]
- Those deals usually last two or five years. [2]
- Fixed-deal homes meet the rise when they renew, and lenders had already priced it in. [2]
- Halifax, Barclays and Nationwide cut their new fixed rates earlier this week, before the rise, the Guardian reports. [44]
- Some fixed deals now cost under 5%, mainly for people with at least a 40% deposit or equity. [44]
- The average new five-year fixed rate was 5.99% on 4 November, says Moneyfacts, a financial data firm. [1]
- Five years ago, the 10 biggest lenders' five-year remortgage rate averaged 1.30%. [1]
- Broker L&C says some borrowers face almost £5,000 more a year on a £200,000 loan than a 2021 deal. [1]
- More than 2.3 million UK households come off fixed deals in 2027. [4]
- The average easy-access savings rate was 2.58% on 4 November, and a one-year locked account paid 4.48%, Moneyfacts says. [5]
- On Thursday the best easy-access accounts paid up to 5%, against an average of 2.58%, Moneyfacts says. [44]
- Banks need not pass the rise on to savers, and some may take their time, the Guardian reports. [44]
- Best fixed bonds paid up to 5.4% this week. [44] Flagstone, a savings platform, expects one rise to move them little. [44]
- Savers in closed old accounts missed out on about £139 over three years on £20,000, Moneyfacts says. [2]
- In September, top five-year bonds, which lock money away, paid up to 5.25%. [6]
- UK prices rose 3.5% in the year to September, with petrol and diesel pushing them up. [1]
- The Bank now expects that to reach around 5% by the middle of next year. [7]
- The Bank says its rate cannot change world energy prices. [7] It aims to stop them spreading into other prices and pay. [7]
- Firms say higher rates limit new jobs and pay rises, the BBC reports. [2]
- Renting while saving could cost more too, because a rising rate may raise landlords' costs. [2]
Who is involved
- The Bank of England the UK's central bank; its committee raised the rate to 4%
- Tracker and variable-rate homeowners about 1 million UK homes whose loans can move with the rate
- Moneyfacts a financial data firm; it publishes the average rates quoted here
- UK Finance the UK banks' trade body; it worked out the £31
How it unfolded
1. Aug 2023 the Bank of England last raises its rate [1]
2. Dec 2025 the Bank cuts to 3.75% [5]
3. 5 Nov it raises the rate to 4% [7]
4. 17 Dec its next decision is due [7]
Why it matters

What this rise costs a home depends first on its loan: tracker, variable or fixed. [2]
How it works

Economists call this monetary policy: a central bank lifts its rate so people spend less and prices slow. [2]
A home paying £31 more a month has less to spend, so shops may sell less. [2]

Seen it before

When a parent cuts pocket money, the sweet shop down the road feels it a week later.
Why the same pizza costs a pound more three miles away

Economists call it search costs: a seller can charge more when reaching a cheaper rival costs the buyer time or travel.

The twist

A seller does not have to fool anyone to charge a pound more. It only has to be easier to reach than the seller who charges a pound less.
The picture
1Muswell Hill£20.95
2Southgate£21.95
3Central London£22.95
One pizza at one chain, in three parts of London. Look at the distance between the marks: that is what convenience and local costs together add.
Step by step
1. The same thing is on sale in several places
2. Finding or reaching the cheapest costs the buyer time, money or effort
3. The buyer stops looking when one more search seems worth less than it could save
4. So a seller can charge up to about that gap and still keep the sale
5. Prices spread out, and those who look least tend to pay most
The same force, elsewhere today

Where this chain is also running, in today's other stories.
- Hotels cheaper by phone than online
  
  The contract keeps the lower rate off the hotel's website, so finding it takes a phone call, and guests who do not call pay more.
- UK savers in old accounts
  
  Newer accounts pay more, but moving takes effort, so savers who stay where they are earn less.
- Similar US borrowers, different card rates
  
  Where one lender holds more of a market, it cuts new-card rates less, so two similar borrowers end up paying differently.
Where you've seen this

Airports

A sandwich past security costs more, because the cheaper shop is on the other side.

Pay

A worker who never checks what rival employers pay is easier to keep on less.

Comparison websites

They cut the cost of looking, so the prices of rival sellers sit closer together.

The catch

Not every gap is a search cost: a shop in central London may really pay more rent, so part of its extra pound can be its own bill.

And the whole of it

Everyone here is acting sensibly: a tired commuter takes the nearest pizza, and a busy saver leaves money where it is. Each of them sees one price from one place, and the rest of the spread stays out of sight, for them and for most of us.
The truth
- What is really going on The Bank of England raised its rate to slow price rises that a war started, and it says its rate cannot change world energy prices. [7]Homes on tracker mortgages pay more at once. [2]Homes on fixed deals pay when their deals end. [2]
- Why it works on people A single number such as £31 feels like everyone's bill, but it is the bill for one kind of loan at one size.
- The £31 is a sum by UK Finance, the banks' trade body, for a typical loan. [1] The real rise depends on the size of the loan. [2]
- Who gains UK savers — The Bank's rate steers what banks pay on savings, and the BBC reports savers could see better rates. [1]
- Who pays UK homes on tracker mortgages — The BBC names borrowers on variable-rate loans as the big losers, because they have no fixed deal to wait out. [2]
- Who pays UK homes leaving cheap five-year deals — Their next deal is priced for today's rates, however long ago they fixed. [1]
- Nobody knows yet
  Whether higher energy costs spread into other prices and pay.
  
  The Bank of England says evidence of this is limited so far, and that such effects usually appear late. [7]
- Nobody knows yet
  How much of this rise reaches UK savers, and how soon.
  
  Each bank sets its own savings rates, and the BBC says only that they could improve. [1]
- Nobody knows yet
  How many UK homes are on tracker and variable loans.
  
  One BBC report gives 510,000 and 470,000. [1] Another BBC report gives about 500,000 each. [2]
Good news
- UK savers could lock money away for a year at an average 4.48% on 4 November, while prices were rising 3.5% a year.
What comes next

The Bank decides again on 17 December. [7]

02
Eurozone prices rise 4% on energy
What happened
- Prices in the eurozone, the countries using the euro, rose 4% in the year to October, early figures show. [8]
- That is the highest since September 2023, and twice the European Central Bank's 2% target. [8]
- Energy cost 20.8% more than a year earlier. [8]
- Italy's rate jumped to 5.6% from 4.2%, the largest rise. [8] Belgium reached 5.2%. [8]
- Core inflation, which leaves out energy, food, alcohol and tobacco, stayed at 2.5%. [8]
Why it matters

Whether energy costs reach rents, wages and restaurant menus may decide how far the bank goes, Euronews says. [8]

How it works

Economists call this cost-push inflation, and here energy alone added roughly 1.9 points of the 4%. [8]
Core stayed at 2.5% while the total rose, so energy did most of the pushing. [8]

Seen it before

When petrol costs more, a pizza delivery costs more even though the pizza has not changed.

What comes next

The bank meets next on 16 and 17 December, and prediction markets put about 84% on a rise. [8]
03
What US Democrats can change on bills
What happened
- Democrats won both houses of the US Congress on Tuesday, with rising costs a top voter concern. [9]
- New members do not take office until January. [9]
- Among voters aged 18 to 29, 87% said inflation had caused their families hardship, early exit polls show. [10]
- Democrats say health comes first: bringing back extra help with insurance under the Affordable Care Act. [11]
- Those extra subsidies ended with 2025, and millions of people's premiums rose sharply. [9]
- They also want to scrap President Trump's import taxes, and some want 4 million new homes in a decade. [11]
- US petrol averages $4.18 a gallon, up nearly 40%, which Democrats link to the war in Iran. [11]
How it unfolded
1. End of 2025 extra subsidies end
2. After that premiums rise sharply
Why it matters

Relief may come late: one forecaster quoted by the BBC sees no health deal until late 2027. [11]

How it works

Political scientists call this divided government: one party holds the US Congress and the other the presidency. [12]
So a housing bill still needs Trump's support and enough Republican votes to clear the Senate. [12]

Seen it before

When one parent plans the holiday and the other holds the wallet, only a trip both accept happens.
The truth
- Larry Levitt of KFF, a health information non-profit, says the full health agenda is impossible with Trump in office. [13]
- Nobody knows yet
  Whether US Democrats and President Trump strike a health deal.
  
  Trump told Politico he does not want to spend two years vetoing everything, but no deal exists. [13]
What comes next

US government funding runs out after 11 December, and the BBC says another shutdown looks possible. [11]
04
A US card rate cap back on the table
What happened
- President Trump has promised to cap US credit card rates at 10%. [9]
- Aaron Klein of Brookings, a US think tank, says a Democratic US Congress might be willing to do it. [9]
- Jaret Seiberg of TD Cowen, an investment bank, says any cap is likely to be closer to 36%. [9]
- Bills at both levels have been proposed in the current US Congress. [9]
- Lower- and middle-income Americans are more likely to carry a card balance and owe interest, Klein says. [9]
Who is involved
- Lower- and middle-income Americans more likely to owe card interest
Why it matters

So a cap would likely be welcome to them, Klein says. [9]

How it works

Economists call this a price cap, here a legal top on the interest a lender may charge. [9]
A lender held to a lower rate may lend less, so Klein says credit limits and rewards could fall. [9]

Seen it before

If a shop must sell sweets cheaply, it may put fewer on the shelf.
05
Lawmakers press over student loan errors
What happened
- More than 30 US Democratic lawmakers wrote to Education Secretary Linda McMahon about student loan errors. [14]
- The letter says firms running the loans, called servicers, billed some borrowers too much and added interest wrongly. [14]
- It also cites delays to relief under plans that set payments by income. [14]
Who is involved

Senator Elizabeth Warren and Representative Ayanna Pressley led the letter. [14]
- Elizabeth Warren US senator
- Ayanna Pressley US representative
How it unfolded

Eight state student loan watchdogs had already raised what they called systemic failures. [14]
President Trump's overhaul of repayment took effect on 1 July. [14]

Why it matters

Officials also reassessed repayment timelines, delaying some borrowers' forgiveness by years, CNBC reports. [9]

How it works

Economists call it a principal-agent problem when a hired firm goes unchecked, as these servicers did. [14]
A US audit found the department stopped checking servicers for accuracy after staff cuts. [14]

Seen it before

A teacher who stops marking homework soon gets careless homework.
The truth
- The department says it has fixed repayment errors as they came up. [14]
- Who pays US student loan borrowers — One borrower was shown payments as counting toward forgiveness, and spent thousands on ones that did not. [14]
- Nobody knows yet
  How many US student loan borrowers were billed wrongly.
  
  The lawmakers' letter, as reported, lists the kinds of error and gives no total. [14]
What comes next

Democrats are likely to hold hearings and subpoena officials over the loan policies, an expert told CNBC. [9]
06
New senators inherit the pension gap
What happened
- The 35 US senators elected on Tuesday will face a funding gap in Social Security, Business Insider reports. [15]
- Social Security is the US government's retirement and disability payment, reaching over 75 million people. [15]
- Its trustees project the retirement fund may run out in the last quarter of 2032. [9]
- Without action, payments could then be cut by 22% across the board. [9]
- A typical two-income couple who recently retired could lose almost $17,000 a year. [15]
- Many Democrats in close races want to lift the cap on the pay taxed for it. [15]
Why it matters

Many older Americans told local reporters that candidates' views on it shaped their vote. [15]

How it works

Pension experts call it pay-as-you-go: tax coming in pays benefits going out, as the population ages. [15]
In 2033 it is projected to collect $2 trillion and spend $2.4 trillion. [15]

Seen it before

Spend more than the pocket money each week, and the jar lasts only until it is empty.
The truth
- No clear path has been agreed, and many Republicans stress protecting current payments or setting up commissions. [15]
07
Regulator opens a case on ScottishPower
What happened
- Ofgem, the energy regulator in Great Britain, has opened an investigation into ScottishPower, an energy supplier. [16]
- It covers catch-up bills, help for vulnerable customers, and whether repayments fit what people can pay. [16]
- A catch-up bill, or backbill, charges later for energy that estimated bills had undercounted. [17]
- Rules restrict charging for energy used more than 12 months earlier. [16]
Who is involved
- Ofgem the regulator
- ScottishPower the supplier
How it unfolded

When Ofgem banned older catch-up bills, the typical one was £1,160. [17]
In January, a Which? survey gave ScottishPower the lowest customer satisfaction score of the suppliers, a ranking it questioned. [18]

Why it matters

Large catch-up bills can leave people struggling or in debt to their supplier, Ofgem has said. [17]

How it works

Regulators call these licence conditions: written duties in a supplier's licence to sell gas and electricity. [16]
One duty limits catch-up bills to 12 months, and another ties debt repayments to ability to pay. [16]

Seen it before

A driver keeps a licence only by keeping to the rules of the road.
The truth
- Ofgem says opening the case does not mean it has found any breach. [16]
- Nobody knows yet
  Whether ScottishPower broke any rule.
  
  Ofgem has only opened the case, and has published no findings. [16]
08
Australian nurses can afford 1.1% of rentals
What happened
- Retail workers, social workers and cleaners in Australia can afford under 1% of rental listings, Anglicare's report shows. [19]
- Nurses can afford 1.1% of listings, and teachers 3.3%. [19]
- Anglicare, a welfare group, measured 48,776 listings against full-time minimum pay in 16 essential jobs. [19]
- Only 3 of the 16 jobs saw rentals grow more affordable than last year. [19]
- Unit rents rose 44.3% in five years, and house rents 36.6%, the analyst Cotality says. [19]
- Anglicare says pay rose by less than half that rate. [19]
Who is involved

Social worker Allie Thompson is moving to a $740-a-week Brisbane rental that takes about half her income. [19]
- Allie Thompson social worker, single mother
Why it matters

She has stopped some of her medicines to afford the move. [19]

How it works

Housing researchers call it rental stress when rent takes a big slice of pay, as half of Thompson's does. [19]
When rent climbs faster than pay, the gap comes out of doctors, dentists and holidays. [19]

Seen it before

If pocket money stays the same and the bus fare doubles, sweets go first.
The truth
- The figures use minimum pay in each job, so staff on more pay can reach more listings. [19]
- Who pays Essential workers renting in Australia — A nurse in Albany, Western Australia, says holidays and meals out went first. [19]
09
Savills sees no UK housing recovery until 2028
What happened
- Britain's housing market is unlikely to recover until 2028, the property firm Savills says. [4]
- It expects average prices to drift lower this year and fall 1.5% in 2027. [4]
- Mortgage rates kept higher by the war in the Middle East are deterring buyers, it says. [4]
- Nationwide, a lender, says UK prices rose just 0.5% in the year to October, the slowest in over two years. [4]
- Its average UK home price is £273,566. [4]
- Savills expects prices to rise 15.8% over the five years to 2031. [4]
Why it matters

It expects first-time buyers to lead the recovery from 2028, helped by deposit affordability and government schemes. [4]

How it works

Property analysts call this mortgage affordability: higher rates shrink what buyers can pay, and that weighs on prices. [4]

Seen it before

A fixed allowance buys fewer games when each one costs more, so the shop waits or cuts its price.
The truth
- Savills, whose business is property, made this forecast, and says a sharper fall is unlikely. [4]
10
US buyers pull back as sellers wait
What happened
- US applications for home-buying loans were 19% below a year ago, the Mortgage Bankers Association says. [20]
- The average 30-year rate in that survey was 7.3%, against 6.17% a year earlier. [20]
- More borrowers took adjustable loans, which start nearly a point cheaper: 11.4% of applications. [20]
- In October, 20.5% of homes for sale had a price cut, Realtor.com says. [21]
- New listings fell 7.5% from a year ago, and agreed sales fell 10.5%. [21]
- Homes for sale still rose 7.4%, to over 1.18 million. [21]
Why it matters

Jake Krimmel, an economist at Realtor.com, calls it a seller pause rather than an exodus. [21]

How it works

Economists call it lock-in, and refinancing is 60% below a year ago as owners stay on lower rates. [20]
Owners on cheap old loans feel little monthly pressure to sell or cut prices, one agent says. [21]

Seen it before

A student on a cheap old phone plan keeps it rather than switch to a dearer new one.
The truth
- NerdWallet's daily figure jumped to 7.07% on 4 November. [22] The bankers' weekly figure fell to 7.3%. [20]
What comes next

The US central bank meets in December, and markets put a rise at just under 80%. [20]
11
Florida's tax cut barely moves for mansions
What happened
- Florida voters approved the new home tax break on Tuesday with about 62%, and it needed 60%. [23]
- It shields $150,000 of a lived-in home's value in 2027, and $250,000 in 2028. [24]
- A $350,000 home's local tax falls from about $3,135 to about $1,050, lawyer Raul Gastesi calculates. [24]
- A $50 million home's falls from about $524,000 to about $522,000, he says. [24]
- It also cuts the cap on yearly rises in a second home's taxable value from 10% to 5%. [24]
- Gastesi says that saves a $50 million second home about $280,000 over five years, if values rise 8% yearly. [24]
How it unfolded
1. 2027 $150,000 shielded
2. 2028 $250,000 shielded
Why it matters

State economists estimate cities, counties and special districts will eventually lose $11.86 billion a year. [24]

How it works

Tax economists call this a flat exemption, because it takes the same dollars off every lived-in home. [24]
About $2,085 a year is most of a mid-priced home's local bill, and almost none of a mansion's. [24]

Seen it before

A small voucher halves a cheap lunch and barely touches a banquet.
The truth
- Gastesi warns the saving on one line may come back on another, if councils raise their rates. [24]
- Who gains Owners of several Florida properties — The lower cap slows the tax on second homes, which matters more to them than the main exemption, experts told Fortune. [24]
- Who pays People who use local services in Florida — Councils lose tax with no new state money, so one economics professor says they cannot fully close the gap. [24]
- Nobody knows yet
  How Florida's local governments fill the gap.
  
  The amendment brings no new state money, and one economics professor says the gap cannot be fully closed. [24]
12
Louisiana voters pass 4 home tax breaks
What happened
- Louisiana voters passed 4 property tax measures on Tuesday. [25]
- Amendment 6, with 65%, gives over-65s who already qualify for a tax freeze up to $30,000 off. [25]
- Amendment 9, with 59%, lifts the income limit for that freeze from $100,000 to $150,000. [25]
- About 230,000 people qualify for the freeze today. [25]
- Amendment 10, with 53%, lets communities excuse tax on derelict homes brought back into use. [25]
Why it matters

Critics say Amendment 9 cuts the tax money local governments need for social services. [25]

How it works

Public finance calls a break like this a tax expenditure, as Louisiana gives help by not collecting tax. [25]
Each older owner on the freeze pays less, so local governments collect less for services, critics say. [25]

Seen it before

Letting some pupils off the class trip fee leaves less in the trip fund.
Good news
- Amendment 1, with 76%, lets the surviving spouse of a disabled veteran carry the tax break to a new home. [25]
13
New York court clears a second-home tax
What happened
- A New York appeals court on Wednesday threw out a lawsuit over the city's new second-home tax. [26]
- The tax is a surcharge on second homes worth over $5 million, backed by Mayor Zohran Mamdani. [27]
- Seven owners sued over about 17,000 notices the city mailed to people who might owe it. [26]
- They said the city made owners prove they lived in their homes, instead of checking its records. [26]
How it unfolded

A Staten Island judge had sided with them on 29 September. [26]
1. 29 September judge sides with owners
2. Wednesday appeals court reverses
Why it matters

Mamdani says the money will go to safer streets, cleaner parks and public services. [27]

How it works

Lawyers call this standing, meaning a person may sue only over a real harm to them. [26]
Receiving a notice was not enough harm, the four judges said, so they never ruled on the complaint. [26]

Seen it before

A referee will not hear a complaint from a player nobody fouled.
The truth
- The surcharge still faces three separate legal challenges, Gothamist reported. [26]
- Who gains New York City's budget — The appeal ruling lets the city carry on with a surcharge on the most expensive second homes. [27]
- Nobody knows yet
  How much New York's second-home tax will raise.
  
  The city's comptroller estimated up to $380 million from about 11,200 properties, before more than 8,800 exemptions were granted. [26]
14
New York votes to merge building permits
What happened
- New York City voters backed simpler building permits on Tuesday, with roughly 68% support in early results. [28]
- It moves 40 types of permit, now handled by 18 offices, into one digital system. [28]
- But the new system does not have to start until 2030. [28]
- The city needs about 700,000 more homes over the next decade, a draft city assessment says. [28]
- Developers filed plans for just 8,064 flats and apartments in the second quarter, down 52% on the quarter before. [28]
- That is less than half of the 17,500 the city needs each quarter. [28]
Why it matters

New York's median asking rent hit $3,785 in October, up 4.5% in a year. [28]

How it works

Economists call this a transaction cost: about 1.5 of nearly 5 years building a 20-unit block go on permits. [28]
Cutting that wait cuts what builders spend, because, as Krimmel says, time is money. [28]

Seen it before

A form signed by 18 teachers takes far longer than one signed by one.
The truth
- One portal need not mean speed: the buildings office's portal went from 8.3 days in 2020 to 20.3 in 2025. [28]
Good news
- New York City voters backed putting 40 types of building permit from 18 offices into one system, with roughly 68% support in early results.
15
Texas's next governor targets big home buyers
What happened
- Gina Hinojosa, Texas's governor-elect, promises to curb corporate investors buying family homes. [29]
- A 2025 bill of hers would have capped such owners at 10 single-family rentals in Texas. [29]
- Neither that bill nor a second one on new listings became law. [29]
- The largest investors made 1.9% of Texas home purchases in early 2026, against 0.6% across the US. [29]
- All investors made 15.9% of purchases in San Antonio and 15.6% in Dallas-Fort Worth. [29]
Who is involved
- Gina Hinojosa Texas's governor-elect
How it unfolded

A US law bars investors holding 350 or more such homes from buying more from January 2027, with exceptions. [29]

Why it matters

In three of those four cities, investors paid well below the median, so competition centres on cheaper homes. [29]

How it works

Hannah Jones, an economist at Realtor.com, says fewer investor rentals would more likely push rents up than down. [29]
So a cap aimed at helping buyers could cost renters, on her reading. [29]

Seen it before

If fewer stalls sell lunch at a fair, the queue grows and the price climbs.
The truth
- Jones expects only a modest effect on affordability, because big investors are a small slice of purchases. [29]
16
Washington DC's new mayor promises 72,000 homes
What happened
- Washington, DC has elected Janeese Lewis George as mayor, its first new mayor in 12 years. [30]
- Her Homes for All plan includes rent stabilisation, more affordable building and help with down payments. [30]
- Her long-term goal is 72,000 new homes within five years. [30]
- Buyers in DC face a 25% gap between what they earn and what a home needs, census figures show. [30]
- She also campaigned on lower utility bills for DC's 700,000 residents and universal child care. [30]
Who is involved
- Janeese Lewis George mayor-elect, democratic socialist
Why it matters

She says more homes plus protection for residents are critical to stopping people being pushed out. [30]
The truth
- President Trump threatened a federal takeover of DC if she won. [30] The AP says a Democratic US Congress is expected to shield the city. [30]
What comes next

She is sworn in on 2 January. [30]
17
Krugman backs temporary rent caps in Europe
What happened
- Economist Paul Krugman, a 2008 Nobel winner, has backed temporary rent caps in Europe, he told Euronews. [31]
- Protests over the cost of living have spread across Europe for almost two months. [31]
- A 21-year-old student in Rome reported that a single room there now rents for €1,200. [31]
- University students living away from home spend almost 40% of their monthly income on housing, a university group says. [31]
- Krugman says the real answer is more homes, but building takes at least 3 to 5 years. [31]
- Berlin's rule, extended to 2029, limits rents on new tenancies to 10% above the local average. [31]
Who is involved
- Paul Krugman economist, 2008 Nobel winner
Why it matters

Europe's students' union warns thousands of young people are being shut out of university by housing speculation. [31]

How it works

Economists call this rent stabilisation, and New York's version sets a top percentage for each year's rise. [31]
New York also gives builders long tax breaks in return for regulated homes, so that building continues. [31]

Seen it before

A school caps canteen price rises for one term while a second canteen is built.
The truth
- Krugman himself calls it an imperfect scheme, needed only until building catches up. [31]
18
A frozen account nearly stops a house sale
What happened
- A UK couple's £37,000 house deposit was locked at Revolut, a digital bank, for nearly three weeks. [32]
- Revolut froze the wife's account in what it called a routine security review. [32]
- It asked for no documents, and direct debits bounced as the couple neared buying their home. [32]
- For a while the husband's own account was restricted too, leaving them no access to any money. [32]
- They had already given notice on their rented home. [32]
Who is involved
- The wife account frozen
- The husband account restricted
Why it matters

Banks may freeze an account over a sudden windfall, an overseas payment or unusual activity. [32]

How it works

Compliance teams call this an anti-money-laundering review, a check for money from crime, and UK rules allow the freeze. [32]
Banks need not warn or explain if they suspect foul play, so a customer cannot tell what is wrong. [32]

Seen it before

A guard stops a shopper's bag and will not say why, so the shopper cannot clear it up.
The truth
- Revolut says regulatory limits stopped it explaining, and the Guardian says no foul play was suggested. [32]
Good news
- The accounts came back after the Guardian's column stepped in, and Revolut offered £175. [32]
19
A slipped Blue Badge and a £170 charge
What happened
- A UK family got a £100 parking charge when a Blue Badge, a disabled parking permit, slipped from view. [33]
- The letter offered £60 if paid quickly. [33]
- After a failed appeal, the charge grew to £170, and a debt firm warned of legal action. [33]
- The parking sector's own rules say such a charge should fall to £20. [33]
- Which?, a UK consumer group, found 18% of drivers had a parking fine in the past year. [33]
- Of those fined, 55% thought it was unjustified. [33]
- Only 51% of those who found the amount unreasonable appealed. [33]
Why it matters

Many who did not appeal expected not to be heard, or feared losing the discount. [33]

How it works

Economists call that discount an incentive, since £60 now feels safer than risking £100 by arguing. [33]
So a driver may pay a charge they think is wrong, because appealing risks the discount. [33]

Seen it before

A library fine at half price today only leaves few people stopping to argue.
The truth
- Premier Park, the parking firm, says no badge came with the first appeal. [33] The family says it did. [33]
- Who pays UK drivers who do not appeal — They give up the argument, including those who think the charge was wrong, to keep an early-payment discount. [33]
Good news
- Premier Park cancelled the charge after Which? contacted it. [33]
What comes next

New UK rules announced in October cap charges at £100 and cancel some fines outright. [33]
20
Hotels cheaper by phone than online
What happened
- Which? got cheaper rooms by contacting hotels directly in 4 of 5 tries, compared with their websites and Booking.com. [34]
- One two-night stay in Bath came almost £80 cheaper, after joining a free loyalty scheme. [34]
- Which? says the cause is a rate-parity clause in the contracts of Booking.com, a travel website. [34]
- It bars many hotels from advertising lower rates on their own websites. [34]
- The EU has banned the practice, but it is still standard in the UK. [34]
- More than 10,000 European hotels are taking legal action against Booking.com, seeking compensation. [34]
Why it matters

A hotel pays Booking.com commission on every booking through it, so a direct deal can be cheaper for both sides. [34]

How it works

Competition lawyers call this a parity clause, and here it keeps a hotel's lower rate off its own website. [34]
With one price on every site, comparing sites finds no cheaper room, so a phone call is needed. [34]

Seen it before

If every stall must show one price but cuts it when asked, only those who ask pay less.

The contract keeps the lower rate off the hotel's website, so finding it takes a phone call, and guests who do not call pay more.
The idea, in story 01: Why the same pizza costs a pound more three miles away →
The truth
- Booking.com rejects the claim, and says the clauses save shoppers checking many websites. [34]
- Who gains Booking.com — A hotel pays it commission on every booking, and its clause keeps cheaper rates off the hotel's own site. [34]
21
One pizza, three London prices
What happened
- A Greggs sausage roll costs £1.35 in Sutton, outer London, and £1.60 in central London, the BBC found. [35]
- One Pizza Express pizza costs £20.95 in Muswell Hill, £21.95 in Southgate and £22.95 in central London. [35]
- A Vue cinema ticket bought online costs £6.99 in Eltham and £9.99 in Piccadilly. [35]
- Petrol at one company ran from 171.9p to 177.9p a litre across London on one day. [35]
- One rabbit's operation at Vets for Pets costs £136 in Chingford and £70 in Enfield. [35]
Who is involved

Greggs says prices can vary where costs are higher, such as travel hubs. [35]
Why it matters

Consumer expert Helen Dewdney says sellers cash in on convenience: Southgate has a Tube station and Muswell Hill does not. [35]

How it works

Economists call these search costs: the time or travel a buyer spends reaching a cheaper seller, as Dewdney describes. [35]
A buyer stepping off the Tube at Southgate would need another journey to save a pound. [35]

Seen it before

The sweet shop next to school can charge more than the one a bus ride away.
The truth
- The chains cite local costs and staffing, and the BBC report does not split costs from convenience. [35]
22
Similar US borrowers, different card rates
What happened
- Two similar US borrowers can get different new-card rates from one lender, researchers on the New York Fed's blog find. [36]
- The New York Fed is a branch of the US central bank. [36]
- They studied about 14 million new card accounts, from 2008 to 2019. [36]
- The bigger a lender's share of a borrower's market, the higher the rates tended to be. [36]
- They split the country into 960 markets, by credit score, income, card type and how the card was sold. [36]
- When funding costs fell in January 2008, lenders passed on 20% less where their market share was large. [36]
Who is involved
- Borrower one same score, same income
- Borrower two same score, same income
Why it matters

So when a central bank cuts rates, borrowers in those markets see less of it on new cards. [36]

How it works

Economists call this market power, and here it shows as lenders passing on less where their share is large. [36]
One lender cut rates less in its high-share markets than in its low-share ones. [36]

Seen it before

The only ice-cream van at the beach does not cut its price when milk gets cheaper.

Where one lender holds more of a market, it cuts new-card rates less, so two similar borrowers end up paying differently.
The idea, in story 01: Why the same pizza costs a pound more three miles away →
The truth
- The authors say the views are theirs and not the New York Fed's. [36]
- Who gains US card lenders with big market shares — They pass on less of a fall in their funding costs where their share of the market is large. [36]
23
UK robocall complaints nearly triple
What happened
- UK complaints about robocalls, recorded sales calls, rose from 1,374 in July to 3,684 in September. [37]
- That is the highest since 2021, says the Information Commissioner's Office, the UK data regulator. [37]
- Its figures for nuisance calls to mobiles rose from 1,923 in May to 5,202 in October. [37]
- Its landline figures stayed about flat, going from 1,707 to 1,644. [37]
- Recorded sales calls are illegal in the UK without clear consent, Ofcom, the telecoms regulator, says. [37]
Why it matters

Fraud networks use cold calls to get card details and one-time passcodes that unlock bank accounts. [37]

How it works

Fraud investigators call it social engineering: callers talk people into WhatsApp groups or into sharing details. [37]
A caller who gets a one-time passcode can open an account with no hacking at all. [37]

Seen it before

Someone phones pretending to be the school, and a parent reads out the code.
The truth
- These are only what gets reported, and the rise has been called just the tip of the iceberg. [37]
- Nobody knows yet
  How many unwanted calls UK households really get.
  
  Complaint counts leave out the many calls that nobody reports. [37]
24
Americans expect savings to run out at 83
What happened
- Americans expect to live to 88 but think their retirement savings will last only until 83, a survey found. [38]
- Ethos, a life insurance technology company, surveyed 1,000 US adults. [38]
- People guessed a nursing home costs $60,829 a year, about 54% of the national average of $112,420. [38]
- US Medicare, the health cover for older people, generally does not pay for that daily care. [38]
- Among people with a 401(k), a US workplace savings account, 40% expected a monthly paycheck for life. [38]
- And 66% said they would prefer a smaller guaranteed income to a larger pot that could run out. [38]
Why it matters

After seeing real nursing home costs, confidence in affording life to 80 fell in every generation surveyed. [38]

How it works

Actuaries call this longevity risk: outliving the money, as with 88 against 83 here. [38]
A traditional 401(k) is a pot, not a paycheck for life, so it stops when the money does. [38]

Seen it before

A phone with one charge must last a day whose length nobody knows yet.
The truth
- Ethos sells life insurance technology, and the survey is its own. [38]
25
UK review to propose subsidised disabled jobs
What happened
- A UK review will call for state-subsidised jobs for disabled young people, the Guardian reports. [39]
- About 1 million young people are not in education, work or training. [39]
- Nearly half, 45%, are disabled or in ill health. [39]
- Disabled young people are 3 times as likely to be in that group. [39]
- A Danish-style flexi-job guarantees work, in some cases from just 4 hours a week. [39]
- One retail job could become three: filling shelves, working the till and locking up. [39]
Who is involved

Alan Milburn, a former Labour cabinet minister, wrote the review, due this month. [39]
- Alan Milburn former Labour cabinet minister
Why it matters

Milburn has suggested moving some of the £4bn a year in young people's disability benefits into job support. [39]

How it works

Labour economists call this a wage subsidy, and in a flexi-job the government tops up the pay. [39]
Many businesses are unlikely to create these jobs without government support, the Guardian reports. [39]

Seen it before

A school pays half of a club's cost so the club offers a place it otherwise would not.
The truth
- Campaigners argue that funding this from disability benefit cuts would push many young people into poverty. [39]
26
Holiday work moves from tills to warehouses
What happened
- US retailers may add about 450,000 seasonal jobs this year, the fewest in nearly 20 years, one estimate says. [40]
- But Amazon raised its seasonal target to 300,000 workers, and UPS, a delivery firm, wants 100,000. [40]
- Retail fell from about two-thirds of all seasonal jobs in 2019 to around 61% this year, Indeed found. [40]
- Indeed runs a large jobs website, and it says the lost share mostly reappeared as loading and stocking work. [40]
- On Wednesday, nearly all of Target's 4,000 seasonal listings mentioned restocking. [40]
Why it matters

Seasonal pay is moving away from the sales floor, toward stock rooms and delivery. [40]

How it works

Labour economists call this reallocation: as sales go online, work moves from cashiers to stocking and delivery. [40]
An online order needs someone to pick and load it, not someone to ring it up. [40]

Seen it before

When a school cafe moves to pre-orders, it needs more packers and fewer people at the till.
27
Canva adds $10,000 grants to layoff packages
What happened
- Canva, an online design company, is cutting more than 1,200 staff and adding unusual help to their exit packages. [41]
- It includes interview coaching, a year of LinkedIn Premium and access to an alumni directory. [41]
- Departing staff can also apply for $10,000 grants to start something of their own. [41]
- Verizon, a US phone company, set up a $20 million retraining fund after over 13,000 job cuts last year. [41]
Why it matters

Advisers say this help softens the blow for staff who are leaving. [41]

How it works

HR people call this outplacement: paid help for laid-off workers to find the next job. [41]
A firm also pays for those who stay, because good treatment can limit backlash and reassure remaining staff. [41]

Seen it before

A coach who treats a dropped player well keeps the trust of the rest of the team.
The truth
- One adviser quoted, Greg Simpson, works at LHH, a firm that sells career transition services. [41]
28
Regulators warn South West Water on leaks
What happened
- UK regulators have told South West Water that failing to fix leaks puts customers' supplies at risk. [42]
- The company serves 1.8 million people and leaks 113.5 million litres a day, about 45 Olympic pools. [42]
- Leakage is 18.5% above forecast, and it has missed targets for seven years. [42]
- About 325,000 people around Exeter and Devon face possible regular cut-offs in the severe drought. [42]
- The company has written to households there asking them to use less water. [42]
Why it matters

Devon's council leader says people there have paid the highest bills in the nation since 1989. [42]
The truth
- The company does not acknowledge its own leaks' part in the risk, the Guardian reports. [42]
What comes next

It must send regulators a plan to tackle its leaks within six weeks. [42]
29
What a box of fireworks does not charge
What happened
- A finance researcher says Bonfire Night fireworks cost more than the price on the box. [43]
- Hospitals in England recorded 123 fireworks admissions in 2024-25, which leaves out people treated without admission. [43]
- UK officials put fine smoke damage at £114,411 a tonne, though that is not a fireworks figure. [43]
- A Dutch study found about 1,000 times as many birds flying during New Year's Eve fireworks. [43]
Why it matters

Neighbours, pets, wildlife and hospital staff carry these costs without buying a box. [43]

How it works

Economists call this a negative externality: a purchase that pleases buyer and seller but costs other people. [43]
The smoke, injuries and frightened animals are not in the price, so the buyer does not pay for them. [43]

Seen it before

A loud party is cheap for the host and costly for the neighbours' sleep.
The truth
- The researcher says a total for fireworks would need data on their emissions and who is exposed. [43]

Across the day

What is true of the whole day.

More good news

Australia's government says more than 8,000 of the 55,000 social and affordable homes it is building are finished.

UK interest rate rises to 4%: about 500,000 tracker mortgages pay some £31 more a month at once, and savers may earn more

29 stories on this beat today.

Why the same pizza costs a pound more three miles away

What is true of the whole day.