The Financial Services Authority (FSA) has told all firms still selling single premium payment protection insurance (PPI) with unsecured personal loans to withdraw such products by 29 May. The move comes after an inquiry by the Competition Commission recommended the sale of single premium PPI be prohibited after 1 October 2010. A number of major banks have already decided to stop selling the product, with some firm's opting to offer regular premium PPI instead.

"We believe that PPI can play an important and legitimate role to cover repayments on specific credit agreements for consumers facing job loss, or other issues at this difficult time," wrote Jon Pain, the FSA's managing director of retail markets, in a letter to firm's chief executives. "However, our focus remains on how this product has been, and continues to be, sold and whether consumers have been treated fairly during the sales process."

The Competition Commission has revealed the measures it believes are needed to introduce competition into the payment protection insurance (PPI) market. Amongst the proposals is a ban on the sale of PPI during the sale of credit products and for seven days afterwards and a prohibition on single-premium policies, personal PPI quotes and annual statements. Measures to make sure that improved information is available to consumers, making it easier for them to compare products and switch policies have also been recommended. Peter Davis, inquiry chairman, said competition in the market will provide consumers with lower prices and better choice. However, the proposals have come under fire from the Association of British Insurers (ABI), which claims the remedies could be to the detriment of consumers.

"The point of sale ban carries significant risks for borrowers, mainly by leaving them unprotected at a time when unemployment cover has never been needed more," said Nick Starling, ABI director of general insurance and health.

The government has announced plans that planning permission will be scrapped for loft conversions. Homeowners now have the option to improve and add value to their property instead of getting tied up in the housing market in these challenging times.

Findings from the Royal Institution of Chartered Surveyors (RICS) indicate that a loft conversion could add around £10k on to the value of the property. Three in ten homeowners feel that converting their loft into a usable room is the best way to add value to their home.

According to Mark Boyle, Personal Loans Manager at Alliance & Leicester: "In an uncertain economic climate where homeowners are finding it too expensive to move house, the Government's plans will be welcomed with open arms. While it may prove too costly to upsize to a new home, converting a loft into a useable room can not only increase the size of the property, but it can also add value to the house price, benefitting homeowners when they eventually come to sell."

"Homeowners may want to consider taking out a personal loan to fund loft conversions and other home improvements to add value long-term value to their property. However it is crucial that they shop around for the best deal to suit them in order to make the most of their investment."