Beware The Discount Mortgage Trap!

""Everything has its drawbacks... as the man said when his mother-in-law died, and they came down upon him for the funeral expenses."

When the author Jerome K. Jerome wrote these words in 1889, he probably never envisaged you would be here, in 21^st century, applying them to ‘best buy' mortgage deals.

But that's exactly what you should be doing if you're about to take out a new mortgage. Especially if you're thinking of going for a variable rate..."

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House prices fall for 4th consecutive month in January

"According to property website, Hometrack, house prices in the UK fell for the fourth consecutive month in January.

Falling confidence among potential buyers continues to put downward pressure on house prices said Richard Donnell of Hometrack.

Mr Donnell added that underlying prices are still being supported by a continued tightening in the supply of homes for sale, a trend that is likely to continue. The short term outlook for market activity hinges as much around the outlook for UK interest rates..."

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How to negotiate house prices in a downturn

"There’s little doubt that we are now facing a property slowdown, and in all likelihood a crash. House prices fell in the final three months of last year, Halifax figures show, and are likely to continue doing so in 2008. But while renting is probably the best thing you could be doing right now, there will always be those who need to sell their house and others willing to buy, even in the worst market conditions. So how can sellers market their homes in a downturn, and how can buyers take advantage as confidence falls?..."

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2008 'will see a 5% fall in house prices'

"House prices will fall by five per cent during 2008, it has been predicted.

Speaking to BBC Radio 5 Live's Wake Up To Money programme, Ian Stewart, associate director of research at Deloitte, claimed that weakened demand for property will result in the decrease.

"I think a lot will depend on what happens to unemployment, and if we do see sharp rises in unemployment I think that is likely to put downward pressure on prices," Mr Steward explained..."

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England, Wales house prices fall 0.4 pct in Dec from Nov - Land Registry

"House prices in England and Wales fell by 0.4 pct in December from November, recording their first fall since August 2005, data from the Land Registry showed.

Its House Price Index showed the average price for a house was 184,469 stg, down from 186,009 stg in November. This takes the annual house price rise down to 6.7 pct from 8.1 pct the previous month..."

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House price plunge predicted for 2008

"House prices could fall by ten per cent during 2008, according to a UK fund manager.

Neil Woodford of Invesco Perpetual believes that prices are too high and the average price of a home will have to drop.

If his predictions are correct it would mean homes losing £50 of value a day totalling £18,500 by the end of the year..."

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Cardiff property prices stable

"The average price of a home in Cardiff in 2007 was £183,473 according to Smartnewhomes.com.

It said that average house prices in the city increased 4.1% in 2007 (up from £176,270 in 2006) but the overall number of property sales in Cardiff was down 27.6%.

Terraced homes proved the most popular properties, making up 40.5% of sales in 2007 and 42% in 2006. They also experienced the strongest price growth, 7.4%..."

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Lack of supply continues to support house prices

"House prices fell for the fourth month in a row in January with average values falling by 0.3%, the same decline as last month according to the latest house price data from Hometrack.

Hometrack said the year on year rate of growth has also slipped back, to +2.3%, which represents the lowest rate of growth since June 2006. Meanwhile, the average time to sell reached 8.5 weeks - the highest level since the survey began in 2001.

But the extent of price falls decreased over January, with agents reporting prices down across less than a quarter (23%) of the country, compared to 30% in December..."

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House prices fall but shortage underpins market

"Hometrack, the housing intelligence specialist, has published its latest national housing market survey, showing that in January, house prices fell for the fourth consecutive month.

National average values decreased by 0.3%, the same rate as in December, taking the year-on-year rate of growth down to 2.3%, the lowest level recorded since June 2006..."

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UK house prices fall for fourth month: report

"The average cost of a home in England and Wales fell by 0.3 per cent

UK house prices declined for a fourth month in January as higher interest rates and a slumping property market sapped confidence among buyers, a report by Hometrack Ltd said.

The average cost of a home in England and Wales fell by 0.3 per cent, the same rate as in December, to £174,700, the London-based research group said yesterday..."

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Property prices fall as buyers stay away

"House prices have fallen for the fourth month in a row, according to the latest survey, which highlights the worsening state of the property market.

As buyers stay away from the market, sellers are being forced to cut their asking prices, and homes are taking longer to sell than at any time in the last seven years..."

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Woodford on house prices: closer to the mark this time?

"Fund manager supreme Neil Woodford of Invesco Perpetual is making another call on house prices.

Woodford, manager of the Invesco Perpetual Income fund and head of investment at the company said that 8-10% falls were likely in 2008.

'Areas that have seen a concentration of speculative development and buying, such as regional metropolitan centres, could be subject to much sharper falls, however.'..."

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More proof of house price slump

"The latest house price data has provided yet more evidence of a slump in the residential property market.

The Hometrack index, published today, shows the average cost of a home in England and Wales dropped by 0.3 per cent in January.

This is the fourth fall in prices in four months, according to the research organisation's figures, and comes after prices fell by the same amount in December 2007..."

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Price dip gives first-timers a better chance

"If anyone should find a silver lining to the cloud that has settled over the British housing market, first-time buyers are an obvious candidate. The fall in house prices in some areas, and an increase in the number of one- and two-bedroom flats going on sale before Christmas to avoid the roll-out of home information packs, has encouraged more people to venture into the market again.

According to the National Association of Estate Agents, first-time buyers increased their share of the market from 10.1 per cent in November to 13 per cent in December. This is the highest proportion recorded for more than a year..."

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The 'big' house price slump may be upon us

"Roger Bootle, economic adviser to Deloitte and a Telegraph columnist has warned that the "big one", referring to a sharp fall in house prices, may be upon us and that there is a risk the economy will slip into a full-blown recession.

The UK is facing its bleakest period of growth since the recession of the early 1990s. Mr Bootle, who is also managing director of Capital Economics, said that a "prolonged" economic downturn of more than a year may force employers to "wield the axe more sharply than in briefer downturns..."

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U.K. Hometrack House Prices Fall for a Fourth Month (Update2)

"U.K. house prices declined for a fourth month in January as higher interest rates sapped confidence among buyers, a report by Hometrack Ltd. said.

The average cost of a home in England and Wales fell by 0.3 percent, the same rate as in December, to 174,700 pounds ($346,000), the London-based research group said today. The average selling time rose to 8.5 weeks, the most since the survey of real-estate agents and surveyors began in 2001..."

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Suffolk's average house price hits £214k

"HOUSE prices in Suffolk continued to buck the national trend and rise at the end of 2007 - but experts say the county's property market has finally started to cool.

New figures, based on actual sales, showed the average house price in Suffolk rose from £200,250 in the second quarter of 2007/08 to £214,196 in the third..."

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HOUSE PRICES FALL FOR FOURTH MONTH

"House prices continued to fall this month as potential buyers stayed away from the market until the outlook becomes clearer, figures show.

The average cost of a home in England and Wales fell for the fourth month in a row, dropping by 0.3% to £174,700 during the month, property website Hometrack said..."

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House prices fall for fourth month

"House prices continued to fall this month as potential buyers stayed away from the market until the outlook becomes clearer, figures show.

The average cost of a home in England and Wales fell for the fourth month in a row, dropping by 0.3% to £174,700 during the month, property website Hometrack said..."

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Why aren’t central London house prices falling?

"Commercial property has fallen by 10-15% as a result of the credit crunch in little more than three months. The Stock market has fallen, with property and housebuilding shares halving from the market peak. Yet central London property had a fabulous year of price rises throughout 2007, and still there is no sign of major price weakness. In a credit crunch you would expect the very inflated central London residential market to fall as well.

There are reasons to worry about these prices:

1. They have become very high in relation to UK earnings. The central district prices rose by as much as 30% last year alone.
2. Mortgage approvals are down 40% this month
3. There are fears of City lay offs and lower bonuses
4. Non doms and overseas visitors are facing the threat of paying more tax, which could persuade some of them to sell up and leave..."

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