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House Prices Rise 1.6% in Sep

Tuesday October 6th 2009

This was the third consecutive monthly increase and the fifth so far in 2009, reveals the Halifax House Price Index- September 2009

Commenting, Martin Ellis, housing economist, said:

"House prices increased by 1.6% in September; the third consecutive monthly increase and the fifth so far this year. House prices nationally have risen by 1.7% since the end of 2008. The combination of increased demand and a low level of properties available for sale has pushed up
house prices in recent months. The marked improvement in affordability due to the reduction in both property prices and interest rates since mid 2007 has been a key factor in stimulating higher demand.

"Continuing increases in unemployment and low earnings growth are likely to constrain the rise in
demand. There are also some signs that the improvement in market conditions is encouraging more people to put their properties up for sale. This development could loosen market conditions by alleviating the current shortage of supply and curb the pace of house price growth evident in recent months."

Key facts

- House prices rose by 1.6% in September. This was the third consecutive monthly increase and the fifth so far in 2009.

- House prices increased by 2.8% in Quarter 3. This was the first quarterly rise for two years (2007 Quarter 3) and the biggest since 2007 Quarter 1 (2.9%).

- The UK average house price in September was 1.7% (£2,672) higher than at the end of 2008. Prices have risen by 5.9% since reaching a trough in April 2009; an increase in the average price of just over £9,000. The national average price is currently at a similar level to that in mid 2005.

- House prices in September were 7.4% lower on an annual basis. The annual rate of change (measured by the average for the latest three months against the same period a year earlier) has fallen markedly from a low of -17.7% in April. It is at its lowest since June 2008 (-6.1%).

- The combination of increased demand and a low level of properties available for sale has pushed up house prices in recent months. The ratio of house sales to the stock of unsold properties on surveyors' book rose for the eighth successive month in August, indicating a tightening in market conditions, according to the latest RICS monthly survey.

- The proportion of disposable earnings devoted to mortgage payments has fallen significantly over the past two years. Nationally, typical mortgage payments for a new borrower have fallen from a peak of 48% of average disposable earnings in 2007 Quarter 3 to 30% in 2009 Quarter 3. This key measure of affordability is at a more favourable level than the average over the past 25 years (37%) and has been a major factor pushing up housing demand.

- Housing market activity has picked up in recent months but remains low on an historical basis. The number of house sales in England and Wales has increased during 2009 with the annual rate of decline improving from a low of -64% in November 2008 to -17% in June 2009, according to the Land Registry.

Bank of England industry-wide figures show that the number of mortgages approved to finance house purchase, a leading indicator of completed house sales, has almost doubled from 27,400 in November 2008 to 52,300 in August 2009, on a seasonally adjusted basis. Approvals in August 2009, however, were 51% lower than in August 2007 (106,770).

UK Home Owners Benefit From Property Market Rise

Thursday October 1st 2009

The value of the average home has risen GBP 57 every day over the last six months, according to property valuation site, Zoopla.co.uk.

The site reported that the average UK home value rests at GBP 203,622 – which is a rise of GBP 10,501 since March, a recovery of 25 per cent since the slump.

However, Wales is lagging behind in the recovery, where Scotland has bounced back the fastest.

The value of the total residential housing stock in Britain now stands at GBP 5.25 trillion, up GBP 250 billion from its recent lows in March of this year, when it fell below the GBP 5 trillion mark for the first time since February 2005.

Consumer Optimism Increasing

Wednesday September 30th 2009

Consumer confidence rose sharply in September to be at its highest level since January 2008 and reversing declines over the last five quarters, according to the GfK NOP consumer confidence index.

The index jumped 16 points in September after sticking at -25 over the previous three months. This was up from -27 in May and -37 in January.

However, the figures are still markedly down on the long-term (34-year) average of -8. The all-time low of -39 occurred in July 2008.

September's sharp rise in consumer confidence was led by substantially increased optimism over the general economic outlook for the next 12 months.

Debt consolidation loans can help

Wednesday June 18th 2008

Consumers experiencing debt problems should consider a consolidation loan to help them manage their finances.

According to debtadviserdirect.co.uk, people should consider these products as they usually have lower interest rates than those on individual loans and allow people to free up more money to go towards bills and other living expenses.

Loans market 'mirroring' the mortgage market

Tuesday May 20th 2008

An industry figure has claimed that current conditions in the market for unsecured loans are "mirroring" those in the mortgage sector.

New research from MoneyExpert has revealed that the average interest rate on loans of £5,000 and £7,500 has increased by one per cent over the last six months, despite three Bank of England (BoE) base rate cuts.

Consumers looking to borrow £5,000 will be faced with interest rates of around 10.16 per cent, while in November last year the figure was 9.4475 per cent.

Demand for payday loans up 55%

Tuesday May 20th 2008

Higher food, fuel and energy prices are hitting Britons' budgets and pushing up the demand for payday loans.

Research from price comparison site moneysupermarket.com shows the take-up of short-term payday loans has increased by over 55 per cent since September.

Tim Moss, head of loans at moneysupermarket, said: "The rise in payday loans is astronomical and symbolises just how difficult people are finding it to cope day to day.

"Payday loans can be useful as a short-term credit vehicle. They are a bit like taxis - convenient for short journeys, but if you are going a long way, there are much cheaper ways to travel.

Credit card companies curb spending limits

Tuesday April 8th 2008

Credit card companies have clawed back some £3.1bn worth of credit by cutting the spending limits of their customers, according to MoneyExpert.com.

The independent financial comparison website says around 1.8 million credit card customers have had their credit limit reduced in the past six months by their card provider, with the average reduction around £1,600.

The research is yet more evidence of the clampdown by credit card companies on customers who they fear may not be able to repay debts, and MoneyExpert.com is warning that more pain could be on the way.

Sean Gardner, spokesperson for MoneyExpert.com, said: “Overstretched consumers might look to resort to credit in a bid to make ends meet but they should not rely on it as a way of keeping spending.

Mortgage Lending Slows

Friday April 4th 2008

The number of mortgage loans approved fell during February, according to new figures from the Bank of England, dropping to 73,000 from 74,000 the month before.

Mortgage lending totalled £7.4 billion for the month, on a level with the previous month but down on the six-month average of 8.2 per cent.

Annual growth rate was recorded as 9.4 per cent, down from 9.7 per cent the month before.

The number of remortgaging loans approved also declined in February to 111,000 down from 118,000 in January.

UK Secured Loan Market Set to Grow

Tuesday March 25th 2008

The UK personal secured loan market is set to rise from £7.5 billion worth of loans advanced in 2006 to £10.2 billion by 2011.

A new Datamonitor report predicts the growth in demand for loans secured against a borrower's property to reach five per cent a year over the coming four years.

More secured loans are predicted to be taken out as demand for products to consolidate debts grows along with levels of unsecured debts.

Secured Loans Play Catchup with Personal Loans

Wednesday March 5th 2008

Rates on secured loans are becoming more competitive than those on the average personal loan, according to financial comparison website MoneyExpert.

Research from the website found the average APR on a £15,000 unsecured loan is around 8.44%, while secured loan customers people who secure a loan against their property looking to borrow the same amount, can get interest rates of 5.9%.