Halifax house price data contradicts Nationwide data
November 15, 2007 by admin
Filed under News, News-Mortgages
Recently Nationwide released data that showed house prices in the UK had picked up during the month of October, following an unexpected tumble of 0.6% during the month of September.
The news of rising house prices came as a surprise for many, particularly given industry predictions that house prices would continue to fall over the last quarter and into 2008. However, the Halifax has now released data that contradicts the information provided in the Nationwide report.
According to the Halifax house prices actually fell during the month of October, taking another tumble of 0.5% and bringing the annual rate of inflation to 8.9% for October from 10.7% in September. According to the Halifax report the average house price in the UK is now just over £197,000. If house prices have fallen for the second consecutive month this is the first time since April and May 2005 where there will have been two house price drops in a row.
In the three months to October house prices were 0.3% higher than the same time last year according to reports. The Halifax stated that its figures reflect the steady ‘downward trend’ that many analysts and industry experts have been predicting would take place over the final months of the year.
The Chief Economist at Halifax stated: “The rise in interest rates since August last year and negative real earnings growth so far this year are curbing housing demand, leading to a slowdown in both price growth and activity.”
He added that the data signifies a cooling market but not a crash. “The UK economy is in a strong position. Sound market fundamentals, including high levels of employment and a shortage in the number of properties available for sale, will continue to support house prices.”
Tom Smith
15th November 2007
Estate agents claim HIPs affecting the market
November 13, 2007 by admin
Filed under News, News-Mortgages
According to many estate agents the controversial Home Information Packs, of HIPs, are having an adverse effect on the housing market, with fewer homeowners with larger properties now putting their homes up for sale.
According to the National Association of Estate Agents there are fewer larger properties on the market now than is normally expected at this time of the year. Many estate agents put this down to consumer reluctance to deal with Home Information Packs, which have been at the centre of controversy since they were introduced.
HIPs are now required for all homes being sold that have three or more bedrooms. Eventually HIPs will be rolled out to all sizes of properties that are being sold, and there are concerns that this could affect the market further. According the government officials the Home Information Packs are of benefit to consumers. However, many industry professionals disagree and state that the packs are harming the housing market and putting many homeowners off selling.
The Chief Executive of the National Association of Estate Agents stated: “Clearly everyone accepts that there are a number of financial and economic factors that have caused the market to take a breather after seven hectic years. However, these figures show that there is an anomaly between instructions on properties where a Hip is required and where one is not.”
He also said: “With sales slowing and normally a traditional autumn bulge in instructions, it would be normal to expect stock levels to be significantly higher. This once again appears to show the adverse effect Hips are having on the market, the lives of consumers and indeed the overall economy.”
Alan Wright
13th November 2007
Some people may never own their own home
July 4, 2007 by admin
Filed under News, News-Mortgages
According to recent reports future homebuyers could face house prices that are up to ten times the amount of their salaries, which means that many of today’s younger people could face the prospect of never being able to purchase their own home.
The research from the government backed National Housing and Planning Advice Unit (NHPAU) indicates that in order to avoid this situation many more homes will have to be build, otherwise millions of people will be left out in the cold when it comes to home ownership in the UK.
According to the research over a third of those that do not own their own home at the moment are doubtful that they will ever be able to afford to buy their own home. Another 20% of non-homeowners believe that they will have to wait a minimum of five years before they can afford to consider getting onto the property ladder. The purpose of the government run National Housing and Planning Advice Unit is to offer advice on improving affordability in the housing market.
The figures indicate that just seven years ago the average house prices was around four times the average salary of the consumers. However, with prices set to rise to ten times the average salary future generations face a very bleak future when it comes to the possibility of home ownership.
According to the chairman of the NHPAU: ‘First-time buyers have seen a big rise in the deposit needed to buy a home and the amount of their income spent on mortgages. Demand for housing is growing and unless action is taken, pressure on the market will only get worse.’
Tom Smith
4th July 2007
