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

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House prices to rocket by 40 per cent, new report claims

A sobering new report suggests that house prices will rise at a rate of 40 per cent in five years.

According to a report entitled Home Truths, published today by the National Housing Federation (NHF), average house prices could soon top £300,000, dashing the hopes of millions of potential first-time buyers.

The current UK house price inflation rate stands at 9.9 per cent for 2007, according to latest results from Nationwide.

Home Truths, which used research conducted by Oxford Economics, provided a searing assessment of the current housing situation in the UK as “distorted” and “dysfunctional”: citing statistics showing that the average house price represented nearly 11 times average salaries.

The report suggested that the situation will worsen the most in London, with prices distorted by soaring city bonuses and an influx of the international super-rich: a full £150,000 price rise in the average home was predicted, taking the average figure to £392,900.

The (NHF) is an umbrella body, representing 1,300 housing associations in the UK.

Tags: umbrella body, city, home, cent, influx, Nationwide.Home Truths, National Housing Federation, new report

Hips to benefit new buyers

The controversial introduction of Home Information Packs (Hips) to the home-selling process is just days away and the row over them continues.

Hips are due to be introduced on June 1st but they face a last-ditch attempt at derailment in the House of Lords tomorrow (May 23rd).

In light of this, the Association of Home Information Pack Providers (Ahipp) has been singing their praises, particularly the help they will offer first-time buyers.

Ahipp points to the current process which sees first-time buyers forking out for surveys and other extras once a price has been agreed.

This can cost thousands of pounds and often highlights problems which force the buyers to withdraw their offer, essentially wasting much-needed cash.

Added to this, another buyer might come in for the same property afterwards and go through exactly the sae process.

Ahipp argues that with the introduction of Hips, this process will be eliminated, saving money for buyers and ensuring that there is a steady supply of first-time buyers.

“A fluid influx of first time buyers underpins the house buying market and brings vital buoyancy to the wider UK economy,” said Paul Broadhead from Ahipp.

“The introduction of the Hip will greatly benefit this vulnerable group of soon to be home owners.

“As the vendor will be responsible for acquiring the Hip, duplicated costs will be eliminated, buyers will be able to make a more informed decision on the purchase from the offset and they will avoid the initial costs of commissioning searches,” he added.

Although Hips have been a hot topic for those with or considering getting a mortgage, it seems they mean nothing to some.

Property firm fish4homes recently carried out a survey which found that one in ten UK adults believe Hips is a sexually transmitted disease.

Tags: survey, wasting, cash, influx, Association, House of Lords