£1.05 For A 1st Class Stamp

In April 2011, Royal Mail raised the price of a 1st Class Stamp by a record breaking 5p, and with the new postal regulator, Postcom, scrapping price caps, many expect the rises to continue.

Some expect prices to slowly increase to those seen across Europe, with Norway paying the equivalent of £1.05 to send a 20g letter 1st Class!

Many consumers are now taking action by purchasing books of stamps in bulk, meaning they will avoid the price hike while they use up old stock.

Someone buying 4 books of 12 stamps today would pay £20.98 thanks to a 5% WHSmith discount available online, however puchasing the same quantity from a Post Office in April 2012 could cost £24, an increase of over 19%!

Many are now considering buying in bulk and reselling via auction websites by undercutting Royal Mail once the price rises are in force. Such a venture could generate a healthy return of 15% for example, far higher than any savings account!