Mortgage Rate Rise - 10th August 2006
Additional quarter percent on mortgage rates
The Halifax, Britain's largest mortgage lender, has already passed on last
week's quarter-point hike in interest rates to its borrowers, lifting its
standard variable rate (SVR) to 6.75 per cent from 6.5 per cent.
Alliance and Leicester will also up its rates for existing borrowers by 0.25
per cent on September 1. Other lenders such as the NatWest are currently
reviewing their rates but are expected to follow suit in the next few days.
Source: Times Online
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Nationwide Market Comments - 1st July 2006
House price growth sluggish in May
• House prices grew by 0.2% in May, the second month of neutral growth in a row
• Annual house price growth remains below 5%
• Accelerating house price growth should not be taken for granted
• Higher money market interest rates already affecting mortgage costs
The average house price for May 2006 was £164,632 and for April 2006 £163,573.
Commenting on the figures Fionnuala Earley, Nationwide's Group Economist, said:
"there are signs that the market is cooling."
To read the full article click on the link below.
Source: Nationwide House Prices
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House Prices - 2nd November 2005
Turn in the cycle?
The closely watched index from the Royal Institute Of Chartered Surveyors has
been steadily improving over the last few months. It's still negative, with the
balance between its members saying house prices had risen and those saying it
had fallen now –21, but that's the best score since August last year.
Source: Investment and Business News
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RICS housing market survey August 2005 - 20th September 2005
New buyer enquiries for August rose
New buyer enquiries for August rose for a third consecutive month - at the fastest pace since early 2004 says the Royal Institution of Chartered Surveyors (RICS') monthly housing market survey released today (20 September).
This is due to a boost in buyer interest fuelled by August’s interest rate cut. Completed property sales are also up, for the second month running, and have risen by 7.5 per cent from a low in February.
House prices continued to fall in August, though at the slowest rate in a year. The number of chartered surveyors reporting price falls for August fell to 26 percent, down from 36 percent in July.
Source: RICS housing market survey August 2005
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Council of Mortgage Lenders Market forecasts - 4th August 2005
Housing market to Stabilise
The outlook for the housing market remains reasonably favourable. Correct management of interest rates by the MPC will assist if any protracted slowdown threatens. Conditions in the housing market have become more difficult over the past year, with the number of property transactions down and the average house price nationally remaining stagnant over the past year. Although house prices may register modest falls by the end of the year, CML does not foresee a dramatic correction. The housing market is likely to be subdued over the next two years, characterised by relatively modest volumes of activity and negligible house price inflation.
Source: CML Housing and Mortgage Market Forecasts 2005-07
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Council of Mortgage Lenders Report - 5th July 2005
First time buyers decline
In 1994, first-time buyers comprised 55% of the market, but their numbers have fallen steadily since 1999.
The average age of the first-time buyer has risen from 31 in 1984 to 34 today. And
those that are currently able to enter the market borrow a considerably higher multiple of their
income than they did in the 1980s.
Today, interest rates are much lower and more stable than they were in the 1980s, which mean
that, although first-time buyers are borrowing a larger multiple of their income than they were 20
years ago, initial interest payments actually consume a smaller proportion of their income.
However, first-time buyers have larger deposits than in the past. Average deposits have risen
from £5,000 in 1996 to £33,000 in 2005.
Source: Council of Mortgage Lenders Press Release
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Hometrack House Price report - 28th June 2005
House price report
According to
Hometrack house prices have fallen every month for a year now, with June seeing
a 0.2% fall, following three successive months of 0.1% falls. Over the last
year, says Hometrack, house prices have fallen by 3% from an average price of
£167,700 a year ago to £161,600 today.
Northumberland was the only county to buck the trend, seeing prices jump
0.1%. House prices fell by 1% in Norfolk, with Avon, North Lincolnshire,
Wiltshire and South Lincolnshire also having a bad month.
Source: investmentandbusinessnews.co.uk
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Housing Market - 23rd April 2004
Average House Prices
£184,582 (rightmove) - April
£142,584 (Nationwide) - March
£151,467 (Halifax) - March
Rightmove reflects asking prices at the first stage of process, whereas Nationwide and Halifax reflect prices at the mortgage offer stage. Nationwide and Halifax also seasonally adjust their figures.
Source: businessnews@bulletin.e-rm.co.uk
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Nationwide Quarter 4 house price report - 2nd January 2004
Affordability bites in London and commuter belt.
House prices rise 1.5% in December and 15.6% during 2003.
Price growth in the North outstrips rest of UK with regional growth differential highest since 1990.
Turnover lowest since 1996 as first-time buyers stay out of the market.
UK house prices set to rise 9% in the year to December 2004.
Source: Nationwide
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Supply problems boost UK house prices (Bank of England) - 10 December 2003
The construction industry's limited appetite for building and tough planning rules are curbing housing
supply in Britain and pushing up prices, according to a Treasury-sponsored report published on Wednesday.
The report, by Bank of England Monetary Policy Committee member Kate Barker, said Britain needed to
nearly double the building of homes if house price inflation was to fall to the European average.
"The housing market is not working as well as it should. In particular there is a problem of weak
supply, with major implications for the UK's economic well-being and house price volatility" she said.
Her report is one of two commissioned by Chancellor of the Exchequer Gordon Brown to examine how to put
an end to the boom and bust that has plagued house prices for so long, a factor that could make it harder
for Britain to join the euro.
Additionally, Kate Barker noted interest rates are currently low and therefore make people's mortgage
payments cheap.
"Interest rates may not always remain at these low levels," she said in remarks sent sterling flying
up nearly half a cent against the dollar.
British house prices have been booming in recent years and the Bank of England raised interest rates
last month, partly because it was worried they were rising too fast.
Economists say the longer the boom goes on, the greater the risk of a crash.
Source: General News
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Bank of England Interest Rate Rise - 6 November 2003
At noon today, the Bank of England decided to put up interest rates from 3.5% to 3.75%.
This will affect the general interest rates and expect to see increases in both savings and mortgage rates
over the next few days.
A rate rise was expected as we are borrowing to too much and house prices
are continuing to rise as a result.
Further rate rises are predicted, with the financial markets predicting rates will hit 4% within a year
and 4.5% within two years.
The Bank of England's accompanying text for the announcement stated; a "modest increase" was required to
help it meet its inflation rate targets.
This suggests that it sees this rise as fine tuning rather than the first of several increases.
Source: General News
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