Property News

Thursday, July 05, 2007

Another interest rate rise

Today, The Bank of England's Monetary Policy Committee (MPC) has opted to increase interest rates by 0.25% to 5.75%.

It was raised in order to try and curb spending and reduce inflationary pressure. Although consumer price index inflation (CPI) fell back to 2.5% in June, the MPC decided that a further interest rate increase was necessary.

A statement from the Bank said: "Although pay pressures remain muted, the margin of spare capacity in businesses appears limited and most indicators of pricing pressure remain elevated. Against that background, it further judged that an increase in Bank Rate of 0.25 percentage points to 5.75% was necessary to meet the two per cent target for CPI inflation in the medium term."

Wednesday, June 27, 2007

Melton sees falling house prices

UK mortgage lender Halifax reported house prices in Melton Mowbray fell 2% on the year in the first three months of 2007, while prices in some London districts rose as much as a third.

In most places in Britain, property prices are heading upwards and that's despite four interest rate rises over the last year, large household debts and record personal insolvencies. In property hotspots such as London and Northern Ireland, the cost of a home is rocketing. But there are signs that the market may be about to turn.

Some believe that Melton is an example of what might happen across Britain's housing market.
"People can't afford mortgages, my mortgage is extortionate," said Diane McLeod, the 49-year-old manager of Melton's 14th century Anne of Cleves pub.

Interest rates hit a six-year high of 5.5% last month and are expected to climb to 6% by the end of year.

Monday, June 11, 2007

House price inflation picks up

According to The Department for Communities and Local Government, house price inflation picked up unexpectedly in April thought to be boosted by the continued strength in London's property market.

Its stated that house prices rose 11.3% year-on-year in April compared with 10.9% increase in March. However, data from the Bank of England showed approvals for new mortgages fell for a third month running in April, while the Halifax house price survey last week showed property prices rose last month at their weakest monthly pace this year.

In April, the average house price was £209,454, more than £10,000 higher than November.
House prices in London also rose 14% year-on-year in April and have risen faster than the national average for the past year.

Monday, May 21, 2007

London house prices still on the rise

According to the latest property figures from Knight Frank, London house prices have continued to boom.

Prices of the best properties in central London have risen by over 33% in the 12 months to the end of April 2007. This is the fastest rate of growth since mid 1979 and means that prices in central London are now rising at three times the rate seen in the wider UK market. The most expensive properties have seen the fastest rate of growth, with prices in Belgravia and Knightsbridge rising in excess of 40% over the 12 month period.

Liam Bailey, head of residential research at Knight Frank pointed out that "London's traditional spring market rush starts earlier and earlier every year, for the past two years the season has opened in December rather than March, and has run on well into May. The early part of 2007 saw an incredibly active market, with price growth totalling nearly 11.9% in the first quarter."

Tuesday, May 15, 2007

RICS: housing market still strong

Today, The Royal Institution of Chartered Surveyors has reported that house prices are still growing strong.

In its housing survey released today, it reveals that prices rose for the eighteenth consecutive month in April, with 28.9% more chartered surveyors reporting a rise than a fall in house prices, up from 26.9% in March. According to the RICS: "The pace of increase remains above the long run average of 21.6% indicating that the housing market is still in rude health."

Again, the survey showed that London and the South East had provided much of the added impetus for prices nationwide.

Thursday, May 10, 2007

Six-year high for interest rates

Today, interest rates have hit a six-year high of 5.5%.

The Bank of England said that while inflation, currently at 3.1%, would probably fall back toward the 2% target this year, capacity constraints and rising pricing power of companies meant risks to the inflation forecast were skewed to the upside.

"Higher interest rates will squeeze family budgets tighter. There are no short-term prospects of costs going down and it's now the time for people to have a good hard look at their finances and draw up a proper budget for the future," said Angela Knight, chief executive of the British Bankers' Association

Some analysts are are predicting a further rise next month.

Wednesday, May 09, 2007

Millions may need to remortgage

According to research by by, another interest rate rise tomorrow could mean that up to seven million people will be forced to remortgage their homes.

Another rate rise is expected on Thursday, which will stretch already struggling homeowners. Of those surveyed by the comparison website, 27 percent said they would have to remortgage their home if a rate rise led to a payment increase of 100 pounds per month. But 2.6 million people will be forced to remortgage if their repayments went up by just 50 pounds.

Louise Cumming, head of mortgages at, said: "The looming rate rise is of grave concern. We feel it could be even half a per cent rise which will drive an alarming number of people into financial difficulty. Anyone finding it difficult to make their mortgage repayments already or who think they might after the next rate rise should try to remortgage to a better deal before Thursday."