Gas and electricity bills to soar

[Cosmos123]

This is worrying as it will push many into fuel poverty.
Rising food prices and empty shelves.
Is anyone worried?

No matter how bad a recession or cost of living squeeze, none of the houses l have bought have ever gone down in price. Ever.

It happened to me. I bought a flat in London the early 90s, and its value went from £46K to about £30K, so if I had had to sell up it would have been a disaster. It took about two years for the value to start to creep up again.

I’m not saying it didn’t happen. I had friends who were in negative equity. But it seemed to happen in certain areas and not in others.

Some seem to lose value, and some maintain, but don’t lose.

Agree, the focus needs to be on reducing consumption first ( middle incomes)
For those in rented properties where they can't make energy efficiency improvements, on overpriced PAYG meters, it really is going to need to be a choice between heating and eating.
Am going to step up my food bank donations, sadly I think many more families will need to be turning to these due to the living cost increases.

In my privileged position of being a homeowner I'm doing all I can to reduce consumption -
Turning down thermostat to 18c and timer on for short periods in morning and evening
Turning down trvs in rooms that I don't need to be as warm (my bedroom)
Draught excluders made
Foam strips round doors and windows
Interlined curtains made
Interlined door curtains made
Top up loft insulation
Jumpers, slippers, dressing gowns etc

For those on very low incomes* in rented properties

@Claudethecat

No matter how bad a recession or cost of living squeeze, none of the houses l have bought have ever gone down in price. Ever.

It happened to me. I bought a flat in London the early 90s, and its value went from £46K to about £30K, so if I had had to sell up it would have been a disaster. It took about two years for the value to start to creep up again.

I was in negative equity for best part of 10 years despite putting a deposit down and over paying my mortgage...

No matter how bad a recession or cost of living squeeze, none of the houses l have bought have ever gone down in price. Ever

Well you have been incredibly lucky then. The couple we bought our first house from in the mid 1990s had lost about 30% of the value in two years when they sold up because they had separated. From the reduction in value, they had each racked up a debt that was similar to my annual salary at the time.

In some areas, house prices have only just or in some cases not even reached the levels that they were pre 2007. Houses haven't always gone up in value everywhere all the time.

We have never been in negative equity but the house that we bought for £14k in 1984 went up to about £55k at peak and we sold it for £33k in 1997, anyone buying when it was high would have been in negative equity for years

Sorry, someone may have answered this, but I can't read the whole thread. Should I cancel my direct debit if my utility company has gone bust, before BG send my 1st bill? I don't want to pay twice....

@User45829057

We have never been in negative equity but the house that we bought for £14k in 1984 went up to about £55k at peak and we sold it for £33k in 1997, anyone buying when it was high would have been in negative equity for years

Exactly this. When you purchased / what for / your deposit influences whether there will be negative equity when / if there's a crash. It's disingenuous to suggest otherwise.

I did, @MackenCheese. I put the money into a savings account that I would have paid to my supplier.

@MackenCheese: Ofgem say you can cancel direct debit before you hear from your new supplier if your old supplier has gone bust, should you wish to.
www.ofgem.gov.uk

Presumably, if a supplier has ceased trading, they wouldn't be able to take more money from you via direct debit anyway?

@RedToothBrush

I think there is a reality check here that many overlook.

The best way to reduce your energy bills, isn't to switch provider. Its actually to reduce your consumption in the first place.

I know plenty of people don't have any choice in this already but I also think a lot of people really take energy for granted too.

I find it hard if we have guests to stay and they don't switch lights off after them when they leave a room. Or we visit people and their house is roasting throughout.

People on low to middle incomes are going to have to change their habits too. This isnt a bad thing to do even if you can afford energy.

I think switching suppliers has just allowed people to carry on taking energy for granted and being limitless.

I think there is a reality going forward for environmental reasons why this can not continue anyway.

But that's a separate issue. People who get the best price don't automatically think 'I've got it cheap, I'll whack the heating up'.

Many of us are naturally frugal and will reduce consumption for environmental as well as monetary reasons no matter how cheap it is.

Some of what is considered 'normal' on here looks alarmingly wasteful from where I'm sitting. Just in the last week I've seen people talking about heating their houses to 23 C, even at night, using tumble dryers even if it's a warm dry day and they have a garden and no mobility issues that would prevent them pegging the washing out, showering twice every day or washing clothes after one use.

I don't any of those things because they're all unnecessarily wasteful. I still don't want to pay more than I need to for my energy, so will take the cheapest price on offer.

It's the same product whoever I pay for it, so comparisons with sweatshop clothing and intensive farming don't apply here. If your company is selling it to me below what it costs to them to buy, then that's their problem.

@Wingedharpy

Presumably, if a supplier has ceased trading, they wouldn't be able to take more money from you via direct debit anyway?

That's what I'm thinking. I'm expecting to not have any money taken until I'm set up with a new supplier, so obviously need to bear in mind that this money needs to be saved until this happens, it can't be spent on other things.

No matter how bad a recession or cost of living squeeze, none of the houses l have bought have ever gone down in price. Ever. Our workplace relocated in the early 90s. Most of those who moved with their jobs took huge losses, sometimes more than 20% of the house value. The move was made possible only by it being to a cheaper area.

No problem with negative equity if you are confident that prices will recover, and you have no need to move. But if you are forced to sell for any reason - job relocation, redundancy, death of a partner - then it is a real problem

Just in the last week I've seen people talking about heating their houses to 23 C, even at night, using tumble dryers even if it's a warm dry day and they have a garden and no mobility issues that would prevent them pegging the washing out, showering twice every day or washing clothes after one use.

I don't any of those things because they're all unnecessarily wasteful.

Please explain how they aren't wasteful of energy.

I'm intrigued.

I find it hard if we have guests to stay and they don't switch lights off after them when they leave a room. Leaving lights on is no longer the most pressing issue. A 12w LED uses 1 unit of electricity every 83 hours (or nearly 12 hours a day for a week). It was a bit different when every 12w LED was replaced by a 100w incandescent, using 8.33 times the electricity.

Please explain how they aren't wasteful of energy. ?? the poster you were replying to thinks they are wasteful of energy.

Which energy saving/LED light bulbs (standard fit ceiling light) can anyone recommend please?

I have just switched to British Gas today, I put in what Bulb said my annual usage is and it is actually cheaper on BG fixed rate than the variable rate I am on with Bulb. I am worried it is too good to be true!

Does anyone know how bills for energy used with old supplier works? I was last billed in June. I was due another in September but it didn't appear and green went bust. I'm in credit anlot but obviously that's because I havent been billed. So will new supplier bill me retrospectively or just from date of going bust? (I took pics of meters on date of going bust). Trying to figure out if I'm going to owe more unexpectedly (perhaps if they charge from June at new rate which is likelyto be more than my fix) or maybe if credit is refunded have a nice bit of money back? Or if actually it will probably all work out about right? Anyone know?

@thewinehasgonetomyhead we got integral filament dimmable bulbs as lots of dimmers, they were around £4.50 each and still going strong after 2 + years and no flickering etc

@PugInTheHouse

I have just switched to British Gas today, I put in what Bulb said my annual usage is and it is actually cheaper on BG fixed rate than the variable rate I am on with Bulb. I am worried it is too good to be true!

Don’t worry my fixed on British Gas came up cheaper than all the comparison websites could offer back when we fixed. Those online places have never been able to beat the price for my home personally. Been with British Gas for over 10 years now. My current fixed ends December.

@MereDintofPandiculation

I find it hard if we have guests to stay and they don't switch lights off after them when they leave a room. Leaving lights on is no longer the most pressing issue. A 12w LED uses 1 unit of electricity every 83 hours (or nearly 12 hours a day for a week). It was a bit different when every 12w LED was replaced by a 100w incandescent, using 8.33 times the electricity.

Dah and I frequently argue about this! I grew up without electricity for most of my childhood and always switch lights off when I leave a room. DH finds it annoying and likes to keep them on, he says the new LED lights aren't very energy hungry. He's probably right, but I still don't like it!

@thewinehasgonetomyhead

Which energy saving/LED light bulbs (standard fit ceiling light) can anyone recommend please?

I just get them in Tesco, or Lidl if they have them in.