House prices still set to fall in 2011

According to recent figures the property market in the UK did edge up a little over the course of 2010, and the average property price in December was up by around 0.4 percent compared to the same month a year earlier. The figures were released by High Street lender, Nationwide, with officials from the building society stating that despite this year’s slight increase property prices were still set to drop in the first half of next year.

Nationwide said that property prices in 2010 had declined in the second half of the year compared to the first half, and that in the first half of 2011 prices would continue to fall. Nationwide said that demand for property remained weak, which would contribute to the slump in property prices. One economist from the building society said that there were two few buyers interested in property and too many properties available.

The lender also said that although property prices had edged up in December, prices had fallen in four of the last six months and were likely to continue doing so. Property prices have been falling as a result of lack of mortgage availability, increased caution from potential buyers who are steering clear of the market at present, and an over-supply of properties for sale.

An official from Nationwide said: ‘At the moment, there are probably still too few buyers chasing too many properties. As a result, the slow drift down in house prices is likely to persist in 2011, at least for the first half of the year. Whether it continues into the second half will depend on the flow of new property on to the market.’

He added: ‘Despite December’s increase, house prices have fallen in four out of the last six months and it would be premature to suggest that the recent downward trend has been broken on the basis of one month’s figures.’

Tags: Business and Economy, building society, slump, economics, Mortgage loan

Data breach could result in FSA fine for Skipton

The Skipton Building Society has hit the headlines recently after it was revealed that there had been a serious breach of security. Over the past couple of years the topic of security breaches has become more and more of a concern, with many fearing that they have become victims of identity theft as a result of security breaches by banks and other financial institutions. Read more

Tags: building society, Skipton, Crime prevention, National security, Public safety

Lack of confidence in banks spells success for building societies

Recently released figures have shown that whilst consumers have been losing confidence in banks, and banks have been losing customers hand over fist, the UK’s building societies have emerged as winners in the current financial climate. Read more

Tags: influx, bank confidence, outflow, building society, bank of england, official, The

Consumers withdrawing billions due to poor returns on savings

A recently released report has claimed that consumers in the UK have been withdrawing billions of pounds worth of savings over the first couple of months of this year, and this is because of the paltry rates of interest now being paid on many instant access and notice accounts following the dramatic cut in interest rates over the past six months. It has been revealed that in many cases savers are receiving barely above zero in terms of interest on these accounts. Read more

Tags: angry consumers, building society, notice, pensions, savings rates, January, bank

Savings rates continue to tumble

The base interest cuts that have been applied by the Bank of England over the past few months have been welcomed by many borrowers and industries, and for many homeowners and borrowers the base rate cuts have left them with far more money in their pocket each month as a result in a drop in repayments. Read more

Tags: savings rates, bank of england, account, Mortgage loan, building society, ISA

Merger between Co-op and Britannia

According to recent reports there is to be a merger between the Britannia Building Society and Co-operative Financial Services. The merger will take place in the event that a new law that allows mutuals to merge is given the go ahead in March. Read more

Tags: recent reports, mergers, britannia, provider, building society, Co-operative Financial Services, substance, part

Warning on house prices from Nationwide

One of the UK’s major lenders, the Nationwide Building Society, recently sent out a stark warning with regards to house prices in the UK, painting a bleak and gloomy picture of what homeowners and the housing market in general has to face over the coming couple of years. Officials from the building society are expecting things to get markedly worse before they get better in the housing market. Read more

Tags: price, halifax, building society, house prices, principal focus, borrowers, nationwide, value mortgages

Two building societies to merge

It has recently been revealed that two building societies, the Yorkshire and the Barnsley Building Societies, are to merge, with the larger Yorkshire building Society agreeing to the merger with its smaller rival in a form of rescue bid. This is one of a number of recent mergers and takeovers in the world of banking in the UK. The smaller building society, Barnsley, approached its rival with a view to a merger after losing a possible £10 million in the Icelandic bank collapse. Read more

Tags: Yorkshire Building Society, nothing, end, december, exposure, building society, official

Top of the polls for Nationwide

In a recent poll carried out by moneysupermarket.com a building society has beaten all of the big banks, pipping them to the post with the number one spot as most trusted bank or building society amongst UK consumers. The big name banks have always claimed to be the most trustworthy and reliable, but the poll has shown that the highest percentage of people actually have more trust in a building society. The Nationwide scooped the number one spot on the poll, and its excellent service and reliability levels were highlighted. Read more

Tags: place, uk consumers, spot, poll, building society, halifax, bank

Building society loses sensitive data

A building society has become the latest culprit of a string of data loss incidents, having lost sensitive data on around one thousand of its employees. The Leeds Building Society is said to have lost details that included the bank accounts numbers and salary details of around one thousand employees, and staff members affected have been warned to remain vigilant with regards to their accounts, and to keep an eye out for any suspicious activity. Read more

Tags: floor, blunders, cheques, close eye, bank account

Building societies attract record savings

Building societies attracted record savings of more than £16 billion over the course of 2007 according to the latest figures.

The Building Societies Association (BSA) said that this figure was double the £8.3 billion inflow of 2006.

The previous record was in 1988, when £13.6 billion was deposited as savers reacted to the stock market crash of October 1987.

Adrian Coles, director-general of the BSA, said: “2007 was a bumper year for building society savings. The majority of the deposits came in the latter months of 2007, so a significant proportion is almost certainly funds withdrawn from Northern Rock bank.

He added that a “considerable amount” would be from households increasing the amount they saved in order to prepare for an uncertain year ahead.

Societies also raised a net funding of £19.1 billion in the wholesale markets in 2007 compared with £13.5 billion in the previous year.

Much of the cash was received in the last quarter of the year following the Northern Rock crisis.

Meanwhile the Council of Mortgage Lenders’ revealed record lending in 2007.

Tags: proportion, societies attracted record, mortgage, inflow, northern rock

Over 50s could enjoy great deal on their savings

Over recent weeks a number of high interest savings accounts have come to light, with many experts urging apathetic consumers to make the effort and switch from a lower interest account to one of the higher interest ones, including Icesave, ICICI, and Sainsbury’s Internet savings accounts.

A new player has now entered the field of higher interest savings accounts, this time targeting the over 50s. The account is being made available from Saga, and is offering 6.2% before tax on deposits of £1 and over.

The account will pay a minimum of the base rate plus 0.45% for the first year, and then for the second year will pay a minimum of the base rate. After year two the account promises to pay at least the base rate minus 0.25%. Any base rate changes will also be passed on to savers within two days, which will be refreshing news for many savers that have been left waiting following base rate rises whilst banks quickly act upon pushing up the rates on borrowing and then dawdle over putting up interest rates for savers.

Savers in the UK have been urged by industry professionals to start taking action in order to make the most of their savings, as it was found that many had left their savings stagnating in low interest accounts where the banks had failed to pass on all of sometimes any of the interest rate rises. Although the savings such as those from Sainsbury’s and IceSave are still recommended for the under 50s according to This is Money, the new Saga account could prove invaluable for savers over the age of 50.

Tom Smith
27th September 2007

Tags: savings, interest, low, accounts, high

UK ‘confident’ in property market

The attitudes of the UK public to the homeownership reveal a strong seated confidence in the property market, a new report from the Building Societies Association (BSA) has shown.

The research indicated that 88 per cent of all home purchases are made primarily for living improvements rather than for capital gains.

It was also revealed that as many as 71 per cent of homeowners accept that prices could begin to fall this year, but that less than two per cent would feel compelled to immediately sell up in the event that this happened.

Adrian Coles, director general of the BSA, said: “Growth in residential property prices has largely been due to a wide selection of factors including low interest rates, lack of suitable housing stock, a buoyant economy and the ingrained desire in the British psyche to own property.

“Some commentators have cautioned that the market may be over reliant on consumer’s expectations that prices will continue to rise. However our report puts paid to these fears. Consumers have a realistic view of the property market.”

Last month, a report from the BSA argued that building societies offer higher levels of customer satisfaction than other financial institutions.

Tags: ingrained desire, stock, customer satisfaction, Outdoor recreation, Boy Scouts of America, realistic view, building society, Real estate

Savers may be missing out

The recent 0.25 per cent interest rate rise was bad news for borrowers but was more warmly received by savers.

The Bank of England’s decision to increase the base rate to 5.5 per cent should mean that savers earn more interest on their money.

However, the Post Office is warning that many people are not benefiting because banks and building societies are failing to pass on the new rates.

“It’s easy to become a base rate loser when account providers fail to pass on interest rate rises in full to their customers, leaving people hugely out of pocket,” revealed Richard Norman, head of savings at the Post Office.

“Interest rates have risen sharply over the last year, and many experts believe there are further hikes to come.

“As people tighten their belts due to rising mortgage payments, they should make sure any money they have in savings is working as hard as it can for them,” he added.

The Post Office claims that many of the largest high street banks and building societies are failing their customers in this way and the financial losses can be huge.

The firm points out that a saver with £5,000 in a typical instant access savings account may have lost out on £145 in interest if their bank has not implemented the one per cent rate rise we have witnessed in the past year.

Tags: one per cent, Mortgage loan, building society, percentage, finance

Casino to affect house prices

The news that Manchester has been chosen as the site for the UK’s first super-casino has led some industry experts to predict a rise in house prices in the city.

Nationwide Building Society described the award as a “vote of confidence” in Manchester and said the number of jobs created will affect house prices.

“This could be good news for house prices in Manchester,” said Fionnuala Earley from Nationwide.

“It will bring new jobs to the city and the decision clearly represents a vote of confidence in Manchester’s infrastructure and the city’s ability to support a new super-casino. New jobs will lead to an increased need for housing which will support local demand and house prices.”

The news is undoubtedly good for those who already own houses in Manchester as they will see the value of their property soar.

However, first-time buyers will struggle to purchase a property in the city as prices rise, while Ms Earley also says the casino may have a negative impact on the value of some homes.

“Depending on the location of the casino, there could still be some negative impact on local prices if factors, like noise, for example, become an issue,” she said.

House prices in Manchester have risen by three per cent in the last year and by 101 per cent in the last five years.

Tags: noise, rise, need, site, Manchester, cent