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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UK January House Prices Up 2.3% On Year Vs. 3% Rise In December

"U.K. house prices rose 2.3% year-on-year in January, down from 3% growth registered in December, and the weakest rate since June 2006, a survey by Hometrack showed Monday.

On a monthly basis, house prices declined 0.3% in January, marking the fourth consecutive monthly fall. The rate of fall remained unchanged from last month..."

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House prices 'to fall 5.5 per cent then rise again', says study

"Britain will this year experience its first annual fall in house prices since 1995, according to a new study.

The average is forecast to fall £11,000 to £188,000, according to the Centre for Economics and Business Research.

However, after this 5.5 per cent fall, it expects prices to begin climbing again in 2009..."

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House prices up 2.3 percent

"House prices in England and Wales rose at the slowest annual pace since mid-2006 this month as the average time it takes to sell a property reached a seven-year high, a survey showed on Monday.

Housing market research company Hometrack said house prices rose 2.3 percent on a year ago in January, down from 3 percent in December and the weakest rate since June 2006..."

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Deloitte says house price slump could provoke period of slow growth

"The economy is poised for its weakest period of growth since the Exchange Rate Mechanism crisis of 15 years ago, with a danger that it could slide into recession, according to a forecast for Deloitte, the accountancy group.

Roger Bootle, economic adviser to Deloitte, said that the growing vulnerability of the housing market would be instrumental in the downturn.

Deloitte’s quarterly economic review predicts that house prices will slump by 5 per cent this year and 8 per cent next year..."

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U.K. House Prices Fall for a Fourth Month, Hometrack Reports

"U.K. house prices declined for a fourth month in January as slowing economic growth 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 supply of homes for sale declined 4.6 percent in the month as people became more pessimistic about future price gains..."

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Continuing slump in house prices

"The latest Financial Times House Price Index shows house prices practically grinding to a halt, going from a double-digit growth rate in the summer to 0.1% in December. This represents their lowest monthly increase of the year and the slowest monthly rate since July 2005.

Price increases were down from 8.9% in November to 7.9% in December. There was considerable regional variation, with the South performing better than the rest of the country, and the annual increase in London – an average 17.4% over the last three months – being almost double that of the next highest region. The North and West Midlands are the regions showing the slowest growth in house prices, with annualised inflation rates of 3.4 and 3.5% respectively..."

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House prices on the rise in Ormskirk and Southport

"House prices may be dropping across the country, but the opposite is the case in Ormskirk and Southport.


The Halifax House Price Index has shown that over the 12 months from the end of 2006 to the end of last year average house prices in Ormskirk rose by 5%.


The average house price in Ormskirk has now risen from £206,744 to £217,391.


In Southport average house prices also rose by 7% and the average house price in Southport has gone up from £179,262 to £191,153..."

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House prices see worst decline in East Anglia

"A new report from the Royal Institution of Chartered Surveyors (RICS) shows that East Anglia is experiencing the worst decline in house prices in the UK, with a fall of 1.3% in the last quarter of 2007, compared to a national average of 0.8%.

Annually, house price growth in the region is 3.9%, below the UK average of 5.3%, according to the Halifax House Price Index. The average house price in East Anglia is £190,984, which is 3% below the national average of £197,071..."

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Region’s property prices ‘remain resilient’

"NEW research has confirmed the Northern housing market is out-performing the rest of the country, save for Greater London.

Property website Rightmove.co.uk’s House Price Index revealed prices in the North rose by 2.1% from December to January, bringing the average house price in the region to £154,879 and the annual rate of increase to 0.8%..."

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Index of indices shows slowing house price growth

"Annual UK house price growth reached 6.4% by the end of December 2007, a 3.9% fall on 2006’s figures, according to property investment group Assetz.

The Assetz House Price Watch Index, which gives an overview of the UK’s major house price indices, found the average house price in December 2007 to be £212,047, down £1,374 from £213,421 in November. While the rate of house price growth was slower on the year however, prices still managed to increase by £12,799 in 2007..."

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House Price Crash? What crash?!

"Forecasts of doom and gloom in the property market have not been in short supply of late, both for the residential and buy-to-let sectors. This week has been no exception, but such views are far from universally held.

Only today another gloomy prediction emerged. Economic consultancy Capital Economics predicted that Britain was about to see a two-year fall in house prices, with a five per cent fall this year and an eight per cent decline in 2009, finance website Moneyextra reports..."

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House prices rose over 6% in 2007

"Annual house price inflation at the end of 2007 hit 6.4%, almost 4% lower than in December 2006, according to Assetz House Price Watch, which takes an average of the five key UK house price indices.

This represented a rise in the average house price of £12,799 over the year, from £199,248 to £212,047 - the lowest level of annual growth since June 2006..."

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West Country house prices withstand property slump

"A housing survey carried out by the Halifax Estate Agency has revealed that homeowners in the West Country are defying predictions of a property slump as prices have not suffered such a considerable decline as the remainder of the country.

The report established that prices in the South West fell by just 0.4% in the final quarter of 2007, compared with 0.8% for the remainder of the UK. Furthermore, the Halifax indicates that this area is well set to navigate a period of market uncertainty..."

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Daily Express Headlines

From an article on PR Blogger:

"Just to touch on house prices a second: The Express newspaper’s journalism quality/integrity has been shocking. Here are a few of their headlines from the last few weeks:

28th December 2007 Daily Express headline HOUSE PRICES FALL AGAIN

29th December 2007 Daily Express headline HOUSE PRICES RISING AGAIN

1st January 2008 Daily Express headline HOUSE PRICES PREDICTED TO FALL

9th January 2008 Daily Express headline HOUSE PRICES UP 5.2%

Friday 11th January 2008 Daily Express headline HOUSE PRICES NOW SET TO ROCKET IN 2008..."

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House prices will continue to fall, surveyors say

"House sales will continue falling, depressing the market and contributing to a decline in property prices, according to the Royal Institution of Chartered Surveyors.

The first snapshot of UK mortgage lending in December is due to be published by the British Bankers Association (BBA) on Thursday..."

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House prices continue to drop

"Annual house price inflation has fallen to its lowest rate for two years after the cost of property fell for the third month in a row.

Nearly £2,000 was wiped off the average value of a home in England and Wales during the five weeks to January 12, with prices dropping by 0.8% to £230,428, according to property website Rightmove..."

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The Scottish government goes sub-prime.

"Well, it was nice while it lasted. Until recently, the Scottish government seemed to be talking sense about housing. It had quietly abandoned that manifesto commitment to giving a £2,000 bung to first time buyers. The SNP minister, Stewart Maxwell, said the priority was to improve planning laws to promote house building and abolish or curb the right to buy council homes. Hear hear..."

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City house prices fall

"HOUSE prices fell in Newport in 2007 for the first time in several years at the end of 2007, one of Britain's largest mortgage lenders says.

The Halifax house price index shows that in Torfaen, Caerphilly and Blaenau Gwent and affluent Monmouthshire the upward trend continues, at 16, 14, six and 10 per cent rises respectively in house prices, with hotspot towns like Ebbw Vale and Pontypool recording 11 per cent increases..."

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House prices dropping by £120 a day

"House prices are dropping around £120 a day with experts warning that the year ahead looks bleak. Rightmove reported that prices have dropped by a total of nearly 5% since October, including a 0.8% decrease this month. Asking prices have fallen by up to 40% on some properties in recent months, according to website Property Snake, which gives details of asking prices which have been slashed..."

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Assetz House Price Watch Sustainable Growth for House Prices Still the Most Likely Outcome for 2008

"Assetz House Price Watch is the only fully inclusive summary of all the major UK house price indices, providing a comprehensive overview of market activity

The five major UK house price indices show an average of 6.4% annualised growth for the twelve months prior to December 2007. This shows a 1.5% decrease in the annual rate of growth recorded in November (7.9%) and a 3.9% decrease since December 2006 (10.3%).

Necessary slowdown in price growth as 2007 ends…

Annual house price growth slowed significantly as 2007 drew to a close, falling back further from the year low recorded in November (7.9%) to end the year at 6.4% - the lowest level of annual growth since June 2006. While annual price growth was slightly lower than expected, a significant slowdown was necessary with the current level of growth unsustainable at above the long term 7% average. However, this has not impacted harmfully on the average UK house price, which remains strong, recording only a marginal fall on November’s figure..."

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Expect regional variations in house prices, says bank

"While the overall UK Property price inflation picture will be flat in 2008, there will be notable regional variations, Halifax has predicted.

The bank gave the forecast as it recorded its price inflation figures by region for 2007..."

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Halifax: House prices rose in 2007

"During the last year, property prices increased by more than five per cent, according to the Halifax House Price Index.

The figures indicate that house prices during the final quarter of the year were 5.2 per cent more than those seen in the last quarter of 2006..."

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U.K. Home Prices Fell for a Third Month in January

"Jan. 21 (Bloomberg) -- U.K. house prices fell for a third month in January and values will continue to drop this year unless the Bank of England cuts interest rates further, Rightmove Plc said.

The average asking price declined 0.8 percent to 230,428 pounds ($450,300) from December, compared with a 3.2 percent drop the previous month, Britain's most-used property Web site said today. The annual price gain slowed to 3.4 percent, the lowest since 2005..."

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Average house prices fall further

"The average asking price of homes put up for sale in England and Wales fell for a third month in a row in January, according to estate agents Rightmove.

Asking prices were down 0.8% in the five weeks to 12 January but the fall was less than the 3.2% slide seen between November and December..."

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First time buyers offered support

"Scotland's communities minister has announced a £24m funding package to help hundreds of first-time buyers get a foot on the property ladder.

Stewart Maxwell unveiled plans for government grants and shared equity schemes to help those on low incomes."

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Record mortgage lending in 2007

"Last year saw the strongest gross mortgage lending to date, but the market is weakening, the Council for Mortgage Lenders (CML) has said.

CML figures showed gross lending reached £362bn in 2007, up 5% from £345bn in 2006, and above its forecast."

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House price growth continues

"Jan 21 2008


House prices increased across all regions in 2007, but growth was less than the long-term average of 8%, Halifax's latest house price index has shown.

UK house prices increased by 5.2% between quarter four of 2006 and the same period in 2007. The average house price rose by £9.821 to £197,071 over the course of the year, according to the index. The figures revealed Scotland saw the biggest price rise, with a 13.1% increase, and the smallest rise was in the East Midlands (0.6%)..."

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UK house price rise lowest since Dec'05-Rightmove

"House prices are rising at their slowest annual rate for more than two years, figures show today.

The cost of a property fell for the third consecutive month in the five weeks to January 12, with £2,000 being wiped off the average value."

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