4 October 2014

TSB’s Council Tax offer set to increase customers’ disposable income by 8.4%

With TSB paying a year's worth of Council Tax for new mortgage customers, the average customer stands to receive an additional £27.84 of disposable income per week, an increase of 8.4% back in their pocket. Anyone looking to take advantage of the deal needs to act quickly though, as the last date for applications is Thursday 6 November.

In England, Wales and Scotland, the average Council Tax Band D charging area costs £1,452 with the average GDHI (Gross disposable household income) standing at £16,791. As TSB's Council Tax offer pays up to a maximum of £2,500 on mortgages for First Time Buyers and Home Movers, it helps to support customers with the cost of running their new home by increasing their disposable income.

Regional Winners

In 248 out of the 380 Council Tax charging areas, mortgage customers in a Band D property or higher will recieve a payment of more than the average of £27.84 in disposable income. That's almost two thirds (65%) of Council Tax charging areas potentially receiving the above average payment of £27.84.

From a regional point of view, people in the North East stand to benefit the most from TSB's offer, with an average 10.9% (£29.87) increase in disposable income. This is because the North East has on average, the highest level of Council Tax at £1,557, which is 7% higher than the average across Britain, but the region has the lowest disposable income at £14,393 - which is 14% lower than the average.

This is followed closely by the North West whose homebuyers stand to gain 10.1% (£29.17) increase in their disposable income. The North West has the fourth highest level of Council Tax at £1,521, 5% higher than the average and the fifth lowest disposable income at (£14,939).

Council Tax Area Winners

Residents in the City of Nottingham, which has the lowest level of disposable income at £11,411, will see the highest percentage increase to disposable income as a result of this offer at 14.7% (£32.14) with the average Council Tax of £1,676.

This is closely followed by Leicester City UA (13.1%, £29.00), Blackburn with Darwen UA (12.9%, £28.60), which has the second and third lowest disposable income levels at £11,539 and £11,582, respectively (table one).

Top 10 areas which could see the highest percentage added to their disposable income using the TSB Council Tax deal:

  1. City of Nottingham
  2. Leciester City
  3. Blackburn with Darwen
  4. Walsall
  5. Redcar & Cleveland
  6. Liverpool
  7. Middlesbrough
  8. Wolverhampton
  9. Blaenau Gwent
  10. Blackpool
TSB council tax offer map. Money back in people's pockets as a percentage of their gross disposable income.

In addition to the above, areas showing the highest percentage increase for customers in disposable income within their region include: Kingston Upon Hull (Yorkshire and The Humber 11.4%, £26.74 per week), Southampton UA (South East 11.1%, £28.84), Luton UA (East of England (11.1%, £28.17), Plymouth UA (South West 10.6%, £29.49 per week), Havering (London 8.9%, £28.66 per week) and Glasgow (Scotland 8.6%, £23.26. per week), see table two.

However, in real terms, it is customers in Weymouth and Portland, in the South West, that could have the greatest weekly increase at £33.10 (9.5%). This area also has the highest level of Council Tax at £1,726 for Band D.

Differences between England, Scotland and Wales

Homebuyers in Wales could potentially benefit the most with an increase in their disposable income of 8.9% (£24.92), followed by England at 8.7% (£28.63), both slightly above the average of 8.4%. In Scotland, the average increase would be 7% (£21.81), but this is mainly due to the fact that Scotland has the lowest average Band D Council Tax figure at £1,137.

Scottish customers could also fare better than Londoners, which would only see a 6.1% increase, £25.04 a week. London itself contains the three lowest Council Tax charging areas; Westminster £678 (1.8%), Wandsworth £687 (1.9% increase in gross disposable income) and City of London £942 (2.5%), which alongside Hammersmith and Fulham (£1,034, 2.8%), Kensington and Chelsea (£1,082, 2.9%) and Camden (£1,321, 3.6%), have the highest level of disposable income at £36,963 in England, Scotland and Wales. These areas therefore show the lowest percentage increases of disposable income as a result of the offer.

Ian Ramsden, TSB Mortgages Director, says: "TSB is focused on supporting customers with the costs associated with buying a home. Helping with a significant cost, such as Council Tax, for the first year, helps to ease the financial burden often faced by new homeowners when moving into a property.

"Every eligible mortgage customer will benefit from our Council Tax offer, which puts cash back into their pockets and enables them to spend money on creature comforts and necessities within their new home. Being able to help people cover these costs brings TSB's local banking for Britain mantra to life."

TSB's Council Tax offer is available up to a maximum of £2,500 on mortgages for First Time Buyers and Home Movers over 75% and up to 90% loan to value. To qualify for the Council Tax offer, new mortgage customers simply need to send a copy of their initial Council Tax bill relating to the current Council Tax year to TSB and they will receive the annual amount detailed on the bill in their bank account within 21 days. The offer, which was launched on 29 August, ends on 6 November 2014.

Appointments with qualified mortgage advisors are available in branch or customers are welcome to apply online or by telephone*.

TSB recently launched a new campaign to encourage people to 'Borrow Well' helping them to borrow money in a way that makes the best financial sense for them. This means that all TSB customers receive the right information so that they can make informed decisions.

TSB also offers assistance for people whose mortgage application has been rejected, helping them understand the reasons behind the decline and assisting them wherever possible.

-ends-

Media Contacts

Follow us on Twitter:  @TSB_news

www.tsb.co.uk/media

 


Notes to editors

Table One: Top 10 Areas which could see the highest percentage added to their disposable income using the TSB Council Tax deal:

RankLocal authorityRegionBand D Council Tax 2014/15GDHI 2012annual increase in gross disposable incomeweekly increase in gross disposable income% increase in gross disposable income
1City of Nottingham UAEast Midlands£1,676£11,411£1,676£32.1414.7%
2Leicester City UAEast Midlands£1,512£11,539£1,512£29.0013.1%
3Blackburn with Darwen UANorth West£1,491£11,582£1,491£28.6012.9%
4WalsallWest Midlands£1,569£12,686£1,569£30.0812.4%
5Redcar & Cleveland UANorth East£1,677£13,564£1,677£32.1612.4%
6LiverpoolNorth West£1,584£13,176£1,584£30.3812.0%
7Middlesbrough UANorth East£1,627£13,564£1,627£31.2012.0%
8WolverhamptonWest Midlands£1,501£12,632£1,501£28.7911.9%
9Blaenau GwentWales£1,591£13,452£1,591£30.5211.8%
10Blackpool UANorth West£1,526£13,009£1,526£29.2611.7%

Table two: Highest percentage increase per region in disposable income

RankLocal authorityRegionBand D Council Tax 2014/15GDHI 2012annual increase in gross disposable incomeweekly increase in gross disposable income% increase in gross disposable income
1City of Nottingham UAEast Midlands£1,676£11,411£1,676£32.1414.7%
2Blackburn with Darwen UANorth West£1,491£11,582£1,491£28.6012.9%
3WalsallWest Midlands£1,569£12,686£1,569£30.0812.4%
4Redcar & Cleveland UANorth East£1,677£13,564£1,677£32.1612.4%
5Blaenau GwentWales£1,591£13,452£1,591£30.5211.8%
6Kingston upon Hull UAYorkshire & The Humber£1,394£12,250£1,394£26.7411.4%
7Southampton UASouth East£1,504£13,488£1,504£28.8411.1%
8Luton UAEast of England£1,469£13,277£1,469£28.1711.1%
9Plymouth UASouth West£1,538£14,564£1,538£29.4910.6%
10HaveringLondon£1,494£16,876£1,494£28.668.9%
 Glasgow CityScotland£1,213£14,161£1,213£23.268.6%

*mortgage applications can be started online but customers will also need to speak to a TSB mortgage advisor.

Sources

England Council Tax: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/298323/Band_D_time_series_text3.xlsx (Area CT tab)

Scotland Council Tax: http://scotland.gov.uk/Topics/Statistics/Browse/Local-Government-Finance/DatasetsCouncilTax/CouncilTaxByBand201415

Wales Council Tax: https://statswales.wales.gov.uk/Catalogue/Local-Government/Finance/Council-Tax/Levels/CouncilTaxLevels-by-BillingAuthority-Band

Gross disposable household income per head: http://www.ons.gov.uk/ons/publications/re-reference-tables.html?edition=tcm%3A77-305151

NUTS3 Regional GDHI, 1997-2012 (Excel sheet 753Kb)   Table 3.2

Annual estimates of NUTS3 regional Gross Disposable Household Income (GDHI). Tables show estimates of total GDHI, GDHI per head, GDHI per head index and components of GDHI.

Coverage: UK

Geographical breakdown: European (NUTS)

Council Tax data is based on 2014/15 band D Council Tax amounts. Band D is used as this is typical for most people.

Methodology:

Comparing the benefit of TSB's Council Tax refund offer in all of Great Britain's Council Tax charging areas by comparing the Band D Council Tax for 2014/15 with Gross Disposable Household Income per head in 2012 (being the latest date available).

Offer details:

  • To receive the payment, the customer needs to send in a copy of their initial Local Authority Council Tax bill within three months following completion. The bill must detail at least one name that is on the mortgage account and be from the tax year corresponding to the date of completion. The annual charge detailed on the bill will be paid to the customer within 21 working days.
  • The annual amount of Council Tax up to £2,500 will be paid by TSB as a one off payment directly to the customer's account from which their mortgage payments are made. It will remain the customer's own responsibility to pay their Local Authority.
  • The amount paid will be based on the Council Tax element of a bill. Additional charges for water, utilities and sewerage, typically included in Scotland, will not be included.
  • This offer is available up to mortgages of £1 million, on mortgages for First Time Buyers and Home Movers over 75% and up to 90% loan to value and is subject to current lending criteria and an affordability assessment.
  • Buy to let, shared equity and shared ownership mortgages are not included in this offer.
  • This offer has been available from 29th August 2014 and will be withdrawn on 6th November 2014.

TSB Bank plc is a British bank which provides customers with a range of services and products such as current accounts, savings, credit cards, loans, mortgages and insurance.

With a presence on 631 high streets right across Britain, TSB Bank plc has approximately 8500 staff looking after £22 billion on behalf of its 4.5 million customers.  Our purpose is to support safe and sustainable economic growth in the surrounding communities, serving only individuals and local business customers.

For further information about TSB Bank plc, please visit our website www.tsb.co.uk