Average house prices fell by 0.2% last month after an identical drop was recorded in December. The fall leaves the average UK house valued at £162,228. Year-on-year, property prices were up a very modest 0.6% in January.

On a quarterly basis, a measure many analyst consider to be a more accurate barometer of market direction, prices were up by 0.3% last month.

Nationwide said it expected prices to “move sideways or only modestly lower in the months ahead”. It cited concerns about the labour market and the general state of the economy as two factors that are likely to hold prices back over the next 12 months. It also said that affordability and access to mortgage funding is still a major problem for first-time buyers.

Despite the fact that mortgages are cheaper now than they have been for almost 10 years, potential borrowers need to raise a substantial deposit before they can secure the loan they need to buy a home. The average median deposit required by a first-time rocketed from 10% before the beginning of the credit crunch to 25% afterwards. Although the average deposit required has fallen back to around 20%, this still means a first-time buyer would need to raise more than £30,000 to buy a typical British home.

Finding a deposit is unlikely to become any easier in the year ahead if household budgets come under increasing pressure and unemployment continues to rise.

Robert Gardner, Nationwide’s chief economist, said: “Given the challenging conditions prevailing in late 2011, with the UK economy contracting in the final three months of the year, it’s not surprising that house price growth softened at the start of 2012. The price of a typical house fell by 0.2% in January, taking the annual rate of house inflation down to 0.6% from 1% in December.

“The demand/supply balance may move further in favour of buyers in the months ahead. The economy is not expected to gather much momentum until the second half of 2012 at the earliest, which suggests that labour market conditions and buyer sentiment may be slow to improve.”

A separate report from the Land Registry showed that prices actually dropped by 1.3% in 2011. Prices fell in every region except for London where the average property rose in value by 2.8% to £345,000. Prices in the north-east plummeted by 7.1% to £99,464, the lowest level in eight years, making it the only region in the UK where average prices are now below the £100,000 mark. In contrast, the average price of a property in Kensington and Chelsea rose by 7.2% to £967,951 last year.

Instances of crooked bank staff stealing money through theft or deception rose by more than 40% last year, according to CIFAS.

The anti-fraud organisation said that dishonest actions by finance workers were the main driver of a 14.5% overall increase in the number of insider frauds recorded in 2011 when compared to the previous year.

Worryingly, one of the more popular methods of stealing was found to be cashiers creaming money off of customer accounts. Many of the frauds recorded involved the theft of money from older people. CIFAS said the perpetrators of such thefts are no better than muggers in the street.

A third of all theft committed by bank employees involved the stealing of cash as opposed to electronically-based crime. The overall number of dishonest actions by staff to obtain a benefit through theft or deception rose from 156 in 2010 cases to 220 last year – an increase of 41%.

CIFAS said that many organisations remained reluctant to recognise the risk of fraud being committed by its staff.

Instances of bank staff unlawfully obtaining and disclosing personal data fell by 25% last year, after a dramatic rise in data theft the previous year. CIFAS said the fall demonstrated an increasing awareness of the danger posed by data theft in the banking industry, and was evidence that steps were being taken within organisations to counter the threat.

Richard Hurley , CIFAS communications manager, , said: “The damage done by fraudsters who sit within an organisation is not just upon a balance sheet but also on staff and customer morale, reputation and can even result in regulatory and legal sanctions.”

“While the 14.5% increase witnessed in 2011 demonstrates that some organisations are increasingly aware of, and looking out for, fraud committed by insiders, the surge must also underline how prevalent the danger actually is. To assume that staff committing fraud will not affect your organisation is pure folly.”

Michelle Mitchell, charity director general of Age UK said: “Any case of bank staff stealing from customers is unacceptable and this increase is very concerning – particularly at a time when banks are talking about regaining the public’s trust and confidence.”

“Common sense measures such as asking for and then keeping a receipt for any deposit or withdrawal, can help in preventing fraud. However it’s important that people remember that banks are still the safest place to keep their money. “

The Office of Fair Trading (OFT) has announced an investigation into unfair gym contract terms that could be in breach of consumer protection regulations. The OFT probe will also look into whether some gym owners are engaging in unfair business practices.

Although the trade watchdog would not say which companies were involved in the investigation, national chains such as Virgin Active and LA Fitness are thought to be included. A spokesperson for Virgin Active said the firm had already received a request for information earlier in the week.

The investigation was launched after the OFT received a number of complaints from consumers about the length of some gym membership contracts and unfair cancellation polices. Some gym membership plans can see consumers locked into contracts for up to 24 months. Most have no option but to carry on paying regardless of whether they use a gym’s facilities or not.

Concerns were also raised about people being unable to extricate themselves from gym contracts when their circumstances change. LA Fitness received a barrage of criticism from Twitter users last week after it tried to force a pregnant woman and her jobless husband to pay £780 to clear 15 months of a contract debt, despite them being in danger of losing their home.

A spokesperson for the OFT said: “This investigation is at an early stage and it should not be assumed that the parties involved have breached any consumer protection legislation.

“The OFT will not reach a view on whether the law may have been infringed by any company until it has completed its investigation.”

The launch of the probe follows a high court ruling last August that contacts written by Ashbourne Management Services Limited (AMS), a gym management firm, were unfair and that a number of debt collection practices amounted to unfair commercial practices. The OFT said it expected any company employing similar contract terms and practices to change them in line with the ruling.

At the time of the ruling, Cavendish Elithorn, senior director of the OFT Goods and Consumer Group, said: “Gym companies should also be aware that trying to enforce illegal contract terms is a breach of the law and in certain circumstances they may have a duty to notify customers where their contract terms have been found to be illegal.

“This case sends a clear signal to traders that the OFT and local trading standards services will not hesitate to take action to protect consumers.”

In defence of the industry, David Stalker, CEO of the Fitness Industry Association (FIA), said: “At the FIA we strongly believe in following the rulings drawn up by the OFT and are happy to play an advisory role in this investigation process. They (the OFT) have made it clear that it should not be assumed that the parties involved have breached any consumer protection legislation and we must await its findings to draw any conclusions.

“The FIA’s vision, to get more people, more active, more often, is shared by our members who offer a wide variety of membership options to suit individual budgets and training needs; placing consumers at the heart of their offering and motivating people to lead an active lifestyle.”

We should be more careful about what we wish for.

Who would have thought that gender discrimination might actually be working in our favour? That the stereotype of men being faster, more reckless drivers than women could be saving us money? Unfortunately though, that’s all about to change.

On 1 March last year the European Court of Justice ruled that insurance premiums can no longer be affected by gender, meaning that insurance companies will no longer be able to charge men and women different premiums based purely on their sex.

The gender insurance directive will come into force on 21 December 2012 and is likely to cause a fair bit of upheaval in the insurance world, both for the industry and for consumers.

What will happen and what does it mean for women?

Currently gender does play a part in the calculation of certain types of insurance – namely car insurance, life insurance and annuities – regular pension incomes.

Women generally pay less for car insurance than men since they are considered less likely to have an accident. They also generally live longer than men, so enjoy cheaper life insurance too. It’s this that the media have picked up on, focusing on women having to pay more and men less after the changes.

However, it’s not all bad news ladies. When it comes to annuities, we should find ourselves better off. Currently women are paid less than men in annuities – also because of their longer life expectancy – but under the new ruling we should receive more.

So how much more can you expect to pay?

Unfortunately we can’t be sure how much more insurance will cost, as insurers are currently calculating exactly how implementing the changes will affect their prices. The next time you renew your insurance you are likely to notice a change however.

The general view on car insurance is that men’s premiums will go down by about 10%, while women’s could go up by as much as 30% – estimated at £400 a year by the AA.

Annuities are predicted to change less, partly because they have already been adjusted in line with the ruling. Men can expect a 2.5% fall, and women a 2.5% increase a spokesman from the Better Retirement Group told the BBC.

Meanwhile the Association of British Insurers (ABI) predicts a 10% fall in life insurance costs for men, and a 30% rise for women.

Do remember though that these figures are just a guide at the moment – more will be known as the deadline draws nearer.

Is there anything you can do to avoid paying more?

During the transition period, your insurance company will contact you to let you know about their new policy documents and premiums. Once you know how much you’ll be charged, the advice is the same as ever – simply to shop around and see if you can find a better deal elsewhere.

Do bear in mind that other risk factors – such as age and health – used to calculate insurance premiums will still affect prices. So, if nothing else, you can downsize your car or quit smoking for instance, to help keep your costs down.

It is also worth saying that when it comes to life insurance, the Association of British Insurers (ABI) has said that ‘most customers who have bought and finalised a policy before 21 December 2012 should not be affected’. So, if you’re a woman considering taking out a life insurance policy, doing so before that date could stand to save you some money.

The above inflation increase will bring the typical water bill to £376 per household, up by an average of £20. The 0.5% above inflation increase was considerably below the 10% rise in prices the water companies were pushing for, according to the regulator. The hike is part of a five-year program of annual prise rises to help fund £22 billion worth of investment in the country’s water and sewerage infrastructure.

Ofwat said the price was made up of November’s Retail Prices Index (RPI) measure of inflation of 5.2% plus 0.5%.

Stark variations were notable in different regions around the country, with homeowners in the Southern district seeing their water and sewerage costs rising by 8%, while those served by Dwr Cymru will have an extra 3.8% added to their bill. The increases will take the annual cost of water and sewerage in the South West area to £543 a year – the highest in the country. Households in the Severn Trent region will only have to pay £325 on an annual basis when the price rises take effect, while London residents served by Thames Water will pay £339.

Regina Finn, Ofwat Chief Executive Officer said: “When we set limits on prices, we listened to customers. They told us they wanted bills kept down, while maintaining safe, reliable water supplies. We challenged companies hard to deliver this. Our decision meant that, before inflation, average bills would remain broadly stable between 2010 -15.”

“We understand that any bill rise is unwelcome, particularly in tough economic times. Inflation feeds through into water bills, and this is driving these rises.”

“We will make sure customers get value for money. Companies are investing £22 billion by 2015 – more than £935 for every property in England and Wales. This will deliver benefits to us all – from continuing to improve reliability of supplies to cleaner rivers and beaches.”

“If companies don’t deliver on their investment promises, we will take action.”

Dame Yve Buckland, Chair of the Consumer Council for Water, said the price rises could push more households into water debt: “Companies need to tell their customers very clearly what they are getting for their money and to help customers who are having difficulty paying their bill.”

“We will be working with companies and the regulator throughout the next price review to ensure that future water prices are acceptable and affordable. We will also applaud those companies who are currently exploring different ways of mitigating the impact of inflation on their customers.”

“Anyone struggling to pay their water bill should contact their company immediately. They can usually offer more flexible payment options, such as weekly or monthly payment plans. In some cases they may also be able to help through special assistance funds, or schemes to help eligible customers reduce their water bills.”

Research from the building society found homeownership was more than £100 a month cheaper than being a tenant in December 2011. The average cost of buying a three-bedroom house in the UK cost £600 last month; some £116 (or 16%) lower than the average monthly rent of £716 paid on the same property type, according to the Halifax report. Three years ago, the average cost of buying was 29% higher than renting.

In December 2008, a three-bedroom property would have cost the average homeowner £928 a month in mortgage payments, while a tenant would have needed to find just £721 to cover rent on a property of a similar size.

The remarkable turnaround has been driven by a sharp fall in the cost of mortgage payments and soaring rents in the private sector. The monthly cost of buying a home has fallen by more than a quarter since 2008. New mortgage borrowers were paying an average rate of interest of 5.75% in 2008, compared to 3.63% last year. At the same time, banks have tightened their lending criteria and asked for larger deposits from first-time buyers, locking many tenants out of homeownership.

The cost of renting has meanwhile risen by 9% since 2009, according to the Halifax. Private rents rose by 4% last year alone, according to data from LSL Property Services, as tenants struggled to secure the funding necessary to get a foot on the housing ladder.

Buying was found to be cheaper than renting in every region of the UK except for Wales, where being a tenant would have saved you £5 a month over owning your own home last month. Buying was found to be most cost effective compared to renting in London. The average homeowner in the capital spent £1,089 a month in December, compared to the £1,212 spent on a property of the same size by private tenants.

Martin Ellis, housing economist at Halifax, commented: “The affordability gains for buyers relative to renters in the last three years have been significant. The average mortgage payment has fallen dramatically over recent years as a result of falling house prices and mortgage rates. At the same time, rents have risen due to strong demand for rented accommodation.”

“Nonetheless, despite the improvement in the relative affordability of buying a home, the number of purchasers has continued to fall due to the ongoing challenges in raising a deposit and the considerable uncertainty over the prospects for the UK economy, which have severely constrained housing demand.”

A separate study published last week by  Santander Mortgages found that 53% of those planning to buy a home were more positive about their prospects of being able to do so than a year ago, compared to only 15% who were more negative. Twenty-two percent of those who said they would be unlikely to be able to buy a home in the coming 12 months blamed being unable to raise enough money for a deposit.

Phil Cliff, director of Santander Mortgages, said: “Given the tough economic climate people are becoming more upbeat about their prospects of purchasing a new home this year.

“It’s been a tough few years for the property market overall, but prices have made a steady recovery so there’s every reason to feel cautiously optimistic.”

“There are however still a number of obstacles out there facing potential buyers, including securing the required funds, which is why the need to look around for the best deals and get some sound advice in terms of properties and mortgages is now greater than ever.”

The charity released the results of new research carried out to coincide with the launch of Big Energy Week which runs from today until January 21. The study found that 43% of homeowners are concerned about covering their next gas and electricity bill and that half of all respondents expect the price of fuel to put pressure on their finances over the coming year.

CA helped more than 96,000 people who got into difficulty with fuel debt last year, but found that as many as one in three bill payers was unaware that help such as insulation grants was available from power providers.

Gillian Guy, chief executive of Citizens Advice, said: “We know hikes in prices have put extra pressure on people’s budgets at a time when money is already tight. Day in day out our Bureaux helping people who can’t afford their fuel bills.

“We’re worried that some people are struggling unnecessarily because they’re not on the best deal; live in homes that haemorrhage heat or are not getting all of the financial help available to them.”

The Big Energy Week survey also found that 53% of people were heating their homes less in an effort to cut fuel costs and that 71% of those who said their energy bills would put a strain on their finances this year also said they were worried they would not be able to pay their next fuel bill.

The figures were released days after four of the “big six” energy suppliers announced cuts to their prices. EDF Energy and npower announced 5% falls in their gas tariffs, while SSE said it would cut its gas prices by 4.5%. British Gas cut 5% from its standard electricity tariff with immediate effect last Wednesday. The reductions do little to compensate for the double-digit price hikes of 2011 and have left some analysts suggesting they may be a precursor to more rises later in the year, despite falling wholesale prices.

Energy and Climate Change Secretary Chris Huhne said: “We know that a lot of households are struggling to cope with rising energy costs. Many people could cut their gas and electricity bills by moving to a better deal with their existing supplier, switching to another supplier altogether, or by taking up home insulation offers. But we need to make sure consumers are aware of this and make it easier for them to take action to save money. That is why I am backing Big Energy Week. We want to get the advice and information out to as many consumers across the country as possible.”

Big Energy Week is supported by Consumer Focus, Which?, Energy UK, energy companies, charities, accredited switching sites, Ofgem and the government. It aims to promote ways consumers can save money on their fuel costs.

An ICM survey conducted on behalf of the charity found that nearly half of the 1,000 pensioners polled said they turned their heating down when not warm enough in an effort to save money.

The study also revealed that 2 million pensioners around the country are regularly going to bed when they are not tired just to keep warm.

Mervyn Kohler from Age UK was quoted in the Guardian as saying, ‘The figures are stark and show that people have been shaken rigid by the enormous rise in prices we saw in the second half of last year, and for individuals living on fairly straitened incomes, that hike in one of the two essential areas – the other being food – has really put the frighteners on our older population,’

She continued, ‘People who are cutting back on the amount of fuel they are using are jeopardising their health. They are going to end up exacerbating respiratory illnesses; they are going to end up isolating themselves in their own homes, feeling miserable sitting in a cold house without anyone coming round to see them. Because the house is too cold they get depressed.

‘In the end they are actually stoking up costs for one or another bit of our National Health Service as a result of starving themselves of fuel.’

The Age UK study found that 90% of the over-60s questioned were worried about the impact of higher energy bills, while 43% admitted to having turned their heating down when they were not warm enough.

Domestic fuel costs have risen by more than 100% since the beginning of the century, leaving many low-income households to choose between heating their homes and putting food on the table. A recent round of price cuts of around 5% to electricity tariffs by the big six power firms did little to stem the rise of fuel poverty in the UK. A household is deemed to be in fuel poverty if it spends 10% or more of its income on energy bills.

Consumer Focus estimated that up to a quarter of all households in England and Wales had fallen into fuel poverty by the end of last year after a round of double-digit price increases in the run up to autumn.

The coalition has a legal duty to end fuel poverty by 2016.

The insurer’s annual Cost a Child report found cash-strapped British parents now have to fork out £10,382 a year, £865 a month or £28.44 a day on each of their children. The study also found that 76% of parents said they had been forced to make cutbacks to their budgets due to financial pressures over the past 12 months.

Although the rise in the cost or raising a child is considerably above the increase in average incomes over the last 12 months, it is below the Consumer Prices Index (CPI) of inflation, which fell last month to 4.2%. This year’s total is up from the £211,113 annual cost of child-rearing recorded in last year’s study.

The overall cost of bringing up a child has risen by 55% from £140,000 in 2003 when the insurance firm first published the report.

Education is the biggest drain on parents’ back accounts before their offspring reach 21. The amount mothers and fathers spend on putting a child through school, college and university rose by 5.1% to £71,780 this year. This figure is expected to rise sharply over the next 12 months after university tuition fees rise to up to £9,000 a year. The overall cost of educating a child has risen by 120% since 2003.

Childcare and babysitting accounted for the second largest proportion of spending, up 2.7% to £62,099, while feeding the average child to the age of 21 will now cost parents £18,667, up 4% from last year.

Clothing and holidays cost mums and dads £10,781 and £15,532 respectively. Over the course of his or her first 21 years, the average child can expect to receive more than £4,000 in pocket money, a rise of 23% since LV=’s first study.

The report found that 43% of parents have reduced the amount they regularly save in an effort make up for falling incomes and that only a third have life insurance in place.

The overall cost of raising a child breaks down as follows:

• 1st year – £10,261 – up 2.8%
• Years 1 to 4 – £56,562 (£14,140 a year) – up 2.5%
• Years 5 to 10 – £46,073 (£7,679 a year) – up 3.1%
• Years 11 to 17 – £52,753 (£7,536 a year) – up 2.7%
• Years 18 to 21 – £52,376 (£17,459 a year) – up 5%

Mark Jones, LV= head of protection, said: “Despite an uncertain UK economy forcing more pressure on the family budget, it’s clear that parents don’t begrudge the money they spend on their children, and would rather do without themselves than radically cut back on what they can provide for their children. From studying parent’s spending habits we’ve seen the cost of raising a child steadily increase since our first report in 2003, and this trend shows no sign of stopping.”

Aviva’s Family Finances report found the average British family currently owes some £7,944 in unsecured borrowing, compared with just £5,360 in January 2011. The increase in debt levels is in spite of the fact that the typical monthly net income of families in the UK rose by 7% to £2,066 over the last year, up from £1,937 in January, 2011.

The Aviva report said rising incomes had failed to keep pace with soaring prices for essential items such as food and fuel, even though the increase in average incomes it reported outstripped the rise in the Consumer Prices Index (CPI) measure of inflation over the past year.

Worryingly, the number of families saving nothing each month rose to a record high of 42% over the past year, according to Aviva’s research. The average amount saved by households that do manage to put something by each month fell slightly from £22 in January 2011 to £21 this year. Despite this, the number of families with absolutely no savings at all fell from 33% last year to 30% this month.

The report found average spending in households ‘remained steady’ over the last 12 months, despite rising inflation. Housing remained the biggest monthly outlay for the average UK family, accounting for 20% of typical monthly household incomes. This was followed by food and debt repayment on 10% and 9% respectively. Spending on food has remained unchanged over the past year despite food prices rising considerably, suggesting that families are shopping around to make their budgets go further.

62% of respondents to the study said they were worried about the rising cost of living over the next six months, while 46% said they were concerned about being made redundant. One in ten people were found to be worried by the prospect of continued unemployment, suggesting that those who have been out of work for some time are becoming less confident about their prospects of re-entering the workplace, according to the report.

Louise Colley, Head of Protection Sales and Marketing, Aviva, said, ‘Families in the UK are still very concerned by the rising cost of living and levels of unemployment. While average incomes have increased over the past year, the prices of essential goods and services have also increased, meaning that families are struggling to keep up. Many appear to have acclimatised to this economic environment by shopping around and seeking to minimise their spending in certain areas. However, at the same time there are still a worrying number of families with insufficient savings or large debts.’