Another house price drop for December
The Nationwide Building Society has reported a drop in house prices for December, which is further evidence of the downward spiral in house prices across the UK according to experts. After a drop of 0.8% in November, house prices slid by a further 0.5% in December state Nationwide officials. However, on a year on year basis house prices for December were still up by 4.8% compared to December of last year.
Officials from Nationwide have stated that the recovery of the market could be aided to some degree by the recent interest rate cut announced by the Bank of England earlier this month. One Nationwide official stated: "The housing market has weakened significantly in the closing months of 2007 after holding up more strongly than expected in the earlier part of the year."
According to Nationwide further interest rate cuts in the coming year could help to improve demand in the housing sector. However, experts are quick to point out that the recovery is unlikely to be as significant as the one seen in 2005 after interest rates were cut.
The Nationwide official stated: "This is mainly because housing affordability is starting from a much worse position than in 2005, while interest rate cuts have started from a higher and more restrictive level."
Many industry experts expect the Bank of England to cut interest rates further in the New Year to help the ailing economy and struggling housing market, with interest rates already having been cut once this year following the latest Monetary Policy Committee meeting in December. Some experts think that there could be two or three interest rate cuts next year, and that the base rate could be cut to 4% by the end of next year.
2nd January 2007
- Lenders have positive outlook for 2008 [02.01.08]
Despite the chaos that the credit crunch has already caused in the UK and other parts of the world the Intermediary Mortgage Lenders Association has stated that the result of a survey show that its members are remaining positive with regards to the outlook for the forthcoming year.
- Consumers in debt getting hassled by banks [19.12.07]
A recent report has shown how some of the major high street banks in the UK are pestering customers that are in debt in order to try and get them to take out a more expensive loan in order to deal with their debt issues, whilst actually making the situation worse in many cases.
- Complaints over mortgage charges soar [15.12.07]
A recent report has shown that over the past twelve months the level of consumer complaints relating to mortgage costs and charges have soared, reflecting the improvement that lenders need to make to their services.
- Watch out for the bogus debt advice company [06.12.07]
Consumers in the UK are being urged to look out for a bogus debt advice company that is offering dodgy advice in order to profit from consumers' misery.
- First time buyers still struggling to get onto property ladder [06.12.07]
According to a report from the Council of Mortgage Lenders first time buyers are still struggling to get onto the property ladder, with costs for first time buyers on the rise.
- Brokers are pushing thought unaffordable home loans [04.12.07]
According to a recent report released by the UK's financial regulator the Financial Services Authority many brokers are pushing through home loans that are simply unaffordable.
- New way for lenders to identify struggling borrowers [29.11.07]
Over recent years banks and lenders have been looking for various ways to try and get rid of bad debtors, particularly with bad debt levels rocketing and lenders losing huge sums of money in lost profits as a result of this.
- Concerns over the end of cheap fixed rate deals [29.11.07]
Concerns are rife across the UK in relation to the many consumers that are currently on cheap fixed rate mortgage deals that are due to come to an end in the coming months
- House prices to slowdown next year [27.11.07]
The Nationwide Building Society has warned that house price growth could grind to a halt next year, stating that there will be a 'significant slowdown' in house price growth over 2008.
- Tenants better off than homeowners [27.11.07]
According to a recent survey the benefits of owning a home rather than renting have plummeted by 75% over the past twelve months, which means that in many of the country's regions tenants that are renting their home are actually better off than those that own their own home.
- Lenders may be raising mortgage rates [24.11.07]
A recent report has indicated that many lenders may be looking to raise their mortgage interest rates as a result of the turmoil that has been caused by the global credit crunch that has swept across the UK and other parts of the world.
- About HIPs [22.11.07]
Earlier on this year the government in the UK introduced HIPs, or Home Information Packs. These HIPs have to be provided by the vendor or agent for any home of three bedrooms or more that goes up for sale in England or Wales.
- Small rise in fixed rates over two years [22.11.07]
According to data from the Bank of England there was a marginal rise in interest rates on two year fixed rate mortgages last month.