Timelines
How the main stories unfold, day after day: each timeline gathers the articles about one event, with a summary.
- Lenders expect credit card defaults to increase in the months ahead, Bank of England survey finds
Lenders expect credit card defaults to increase in the months ahead, according to the Bank of England's Credit Conditions Survey, which found such defaults have already increased in recent months.
- Average UK household £2,900 worse off due to the cost-of-living crisis, study finds
A study finds that UK households have been left thousands of pounds worse off, five years into the cost-of-living crisis: had inflation been at normal levels over the period, the average household would be £2,900 better off than it currently is. The report comes as Andy Burnham promises 'breathing space' for families in the upcoming Budget.
- Think tank urges a new tax on online shopping to support UK high streets
A think tank has told Healey to enforce an online shopping tax to support UK high streets, urging Andy Burnham's government to 'shift some of the tax burden from bricks to clicks'. It estimates that around £1.5 billion could be raised as a result of the changes.
- Housing market faces a 'fresh headwind' as buyers become more cautious
Buyers are becoming more cautious, a 'fresh headwind' for the housing market. The market may need to contend with a somewhat longer period of subdued activity, the Royal Institution of Chartered Surveyors said.
- UK house prices stall as mortgage rates rise, Lloyds figures show
UK house prices did not grow in September, with Lloyds recording a 0% change on both a monthly and an annual basis and an average price of £298,441, as mortgage rates rise and the property market is warned of 'gathering dark clouds'. In London, house prices fell at a faster rate, down 2.2% to £531,548 in the year to September.
- NS&I increases interest rates for UK savers with £500 to £1m accounts
NS&I announced on Tuesday 6 October that it is increasing the interest rates on its British Savings Bonds, which savers can hold with £500 to £1 million, saying the increases reflect changes in the wider savings market.
- UK construction industry declines at slowest rate for eight months
The UK construction industry shrank at its slowest rate in eight months, according to the latest figures. It nevertheless remains firmly in contraction territory, having been declining since January 2025.
- UK average five-year fixed mortgage rate hits 6% for first time in three years
The average five-year fixed mortgage rate in the UK has reached 6%, the first time in three years that it has hit this level. This increase follows rising costs for lenders due to turmoil in bond markets and increased expectations of a base rate rise. Banks and building societies have raised mortgage rates in recent weeks. Two-year fixed rates are also approaching similar levels, while tracker deals may offer an alternative for some homeowners. The current rate reflects ongoing financial pressures on the housing market.
- UK Government Says Diesel Supplies Are Sufficient as Prices Reach Record High
The average price of a litre of diesel in the UK hit a record £2 for the first time on 2 October, as the Iran war drives up the cost of oil worldwide, and the government insists supplies are robust. Chancellor John Healey has said he is concerned about the rise. Coach operators warn that services, including school transport, could be cut as fuel costs push hundreds of firms out of business, and services firms raised prices at the fastest rate since May, citing fuel and staff pay.
- National Audit Office reviews Capita's civil service pension management
The National Audit Office has initiated a review of Capita's management of the civil service pension scheme. Capita acknowledged that its performance in administering the scheme falls below the standards expected by members and the government. The review follows concerns raised about the handling of the pension scheme, with reports indicating public scrutiny over its management.
- UK Chancellor summons bank chiefs as lenders warn against tax rises
The Chancellor summoned the heads of the UK's banks on 1 October. Industry leaders had voiced concern at the prospect of lenders being targeted with tax rises and called for their taxes not to be raised.
- Ofgem energy price cap increase to affect UK households
The UK energy regulator Ofgem has raised the energy price cap, affecting millions of households. The increase, which took effect on October 1, is expected to raise bills by £60 for some households and by up to £300 annually from January. The rise is higher than previously predicted and has prompted advice for households to take action to manage their energy costs. The government has been urged to assist households with the rising energy bills. The price cap is now at its highest level since July 2023.
- UK economy grows faster than first thought amid service sector boost
The UK economy grew by 0.5% between April and June, according to the Office for National Statistics. This growth was higher than initially estimated and was driven by a boost in the service sector. The Independent reported that experts predict a tougher end to the year due to rising energy and fuel prices linked to the Iran war. The Office for National Statistics confirmed the GDP increase in multiple reports. The service sector's performance was a key factor in the revised growth figures.
- UK home sales fall in August as mortgage rates rise
Figures published on 30 September showed that UK home sales fell in August, both from July and from August last year. Property experts quoted in the coverage said buyers were becoming more cautious as mortgage rates rise.
- Bank of England policymaker says raising interest rates ‘not compelling’
A Bank of England policymaker has expressed that raising interest rates is not compelling. The official, Alan Taylor, a member of the Monetary Policy Committee, has downplayed the need for increasing borrowing costs. Multiple outlets have reported his comments, emphasizing his stance on the current interest rate situation. The discussion comes amid ongoing debates about the UK's economic outlook and inflation trends. No decision on interest rates has been made as of the latest reports.
- UK mortgage approvals fall to lowest since end of 2023
UK mortgage approvals for house purchases decreased in August, reaching the lowest level since the end of 2023. The Bank of England reported 54,900 approvals, down from 55,900 in July. This marks a continued decline in mortgage activity, reflecting ongoing challenges in the housing market. The figures indicate a slowdown in home buying, with no signs of immediate recovery. The data has been consistently reported by multiple outlets, showing a consistent trend over the period.
- Bank of England deputy warns rate rise likely if energy prices stay high
A deputy governor at the Bank of England has indicated that a rise in interest rates is becoming more likely if energy prices remain high. The warning follows reports that inflation reached a five-month high of 3.1% last month, moving further away from the Bank’s 2% target. The Bank has forecast that inflation will rise to approximately 3.7% in the fourth quarter of this year. The statements were made as energy prices remain elevated, adding pressure on the central bank’s monetary policy decisions. The Bank has not yet made a decision on a rate increase, but the possibility is being closely considered.
- UK business activity slows to three-month low amid Iran war inflation pressure
UK business activity has slowed to a three-month low, according to the S&P Global flash UK composite purchasing managers’ index. The index recorded a reading of 51.7 for September, down from 52.5 in August. The decline is attributed to inflation pressures linked to the war in Iran. The index remains above the 50 threshold, indicating continued expansion, though at a slower pace. The situation reflects ongoing economic challenges influenced by external conflicts.