Property News Blog

Further rises in house prices are likely to be held back as more properties enter the open market

March 10, 2010

The Royal Institution of Chartered Surveyors (Rics) says new instructions outpaced inquiries from new buyers in February, this being the second month in a row that this had happened.
The rise in house prices during the past year has been attributed by many commentators to a shortage of stock for sale.
Despite the suggestion that the balance between buyers and sellers may be changing, Rics still found more surveyors reporting rising prices than falling prices last month.
The magnitude of the gains going forward is likely to continue to ease, reflecting the fact that new supply coming on to the market is starting to outstrip fresh demand.
Prices
Rics said it was the first time in two years that new sale instructions had outstripped inquiries from would-be buyers in a sustained manner.
The actual level of sales recorded by its members was still hampered last month by the knock-on effect of the cold weather.
As a result, the number of sales per Rics member remained at 1.4 per week.
In the course of 2009 prices rose by 5%, according to the surveys published by two of the major mortgage lenders, the Nationwide and the Halifax.
Both reported a dip in prices in February, which they blamed on the recent very cold weather and on a rush by buyers to push their purchases through before the restoration of the old stamp duty threshold in December.
Rics suggested that this would be just temporary.

The country’s credit card debt is rising!.

March 4, 2010

The latest Bank of England figures showed that in January people owed a total of £61.5bn to credit card companies.

This currently is an increase of £8bn on last year. The current interest rates being charged on overdue balances is 18%! This means that credit card holders are being expected to find over £900m in interest every month.

Experts say that credit was not a problem “when it is used responsibly”. The vast majority of credit card holders behave responsibly and around two-thirds of them pay off their balance in full every month.

On numerous occasions it is the case that credit card companies and store card companies are behaving irresponsibly in the way they are encouraging people to get into debt.

The Government had just finished a consultation on “credit and store card practices” and the response would be published on April 20.

A retired professor of economics, added “Is it not just case of people having to learn, as the Government itself has learned, that if you borrow, you eventually have to repay it.

Blaming the credit card companies, in my judgment, is not always the case. It is people themselves who have be told that ‘I must have it now’ is not a satisfactory way of buying.

Stamp duty rise affects mortgage borrowing

March 1, 2010

Gross lending for home loans fell by 32% compared with December to £9.1bn, the Council of Mortgage Lenders said.
It suggested the decline was due in part to the threshold for paying stamp duty rising at the start of 2010.

However, the figure was 21% lower than January 2009 and the lowest monthly total since February 2000.
Seasonal factors mean that mortgage lending usually falls in January compared with December, but lenders say that the drop was particularly pronounced this year.
The stamp duty threshold dropped back to £125,000 on 1 January, prompting a rush on mortgage approvals and completed home sales in the final months of 2009.

The Bank of England is likely to keep rates low which should continue to help mortgage payment problems and help cushion borrowers from the worst of the recession.
This time last year the mortgage market was at a stand still, but in the past three to four months a lot more products have become available, as lenders once again start fighting for market share.
But while more competitive rates are starting to emerge at higher loan-to-value levels, you still need a faultless credit history if you are to secure a loan.
The Bank of England’s own Trends in Lending report also found that activity in the housing market has dipped owing to the recent poor weather.

More Doom & Gloom on the job front!

March 1, 2010

At least 25,000 council jobs in England will be under threat in the next three to five years.
The forecast is based on answers from 49 councils with a combined workforce of 256,000, suggesting cuts of 10%.
Services such as libraries and nurseries face cuts as councils grapple with the impact of the recession.
Responding to the survey, PM Gordon Brown insisted that, while there was a need for efficiency savings, there was no need for cuts to services.
One expert said the number of job losses could reach 100,000, while one union warned of “social disharmony”.

Councils across the UK say jobs and services will have to be cut if, as they expect, funding from central government is reduced.
More than 70% of councils in England that responded to the survey predicted spending cuts of between 5% and 20%.
Roads, libraries, the arts and leisure appear most at risk of cutbacks. Children’s social services, services for the homeless and planning appear to be safest.
The Local Government Association, which represents English and Welsh local authorities, said town halls had been battling the effects of recession for more than a year.
Sources of income have dropped sharply at a time when more and more people are turning to councils to help them through tough times.

Low interest rates mean councils are much less able to rely on their savings, plummeting house and land prices have hit hard and income from leisure centres and a range of other services has fallen.
She said tough decisions would have to be taken, but “councils will do everything they can” to protect front-line services.
But eight authorities – Kirklees, Leeds, City of Bradford, Sheffield, Stoke-on-Trent, Nottinghamshire, Lincolnshire and Surrey – said 1,000 or more posts might be lost within five years.
Birmingham City Council, is planning savings of £69m in the next financial year, which could mean the loss of up to 2,000 jobs.
Shropshire Council has also said it is planning to cut more than 1,000 posts over the coming years.

Thinking of Borrowing more money?

February 25, 2010

If you are struggling to pay your mortgage, you may be tempted to pay off your mortgage arrears, your other debts and get extra money to deal with future problems by arranging a second mortgage or getting a secured loan – but these options will simply increase your overall debt.

If your problems stem from the fact that you are on a low income, borrowing more money is not the answer & is also likely to increase your debts and your difficulties in repaying them in the long-term.
You can also arrange to switch lenders (re-mortgage). However, you may be faced with higher interest rates, which means larger monthly payments, large arrangement fees which are added to the loan, and a shorter period to pay off the loan. If you fail to pay what is due, your home is at risk. You should therefore always get advice before trying to borrow your way out of difficulty.
There may be other ways to reduce the amount you pay each month, particularly if your problems are only temporary (eg because you will be starting a new job soon, or you are trying to sell your home and move somewhere more affordable).Always contact your Lender to see if they can help you in any way!
If you feel your problems are long term, then please call us here at Equity fast to see where we can help you with that very much needed house sale. Freefone 0800 0122829

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