First time buyers often still need to scrape together £50,000 deposits

The difficulty for first time buyers goes on as deposits of over £50,000 on average are still being demanding to get on the property ladder. Worrying news for first time buyers, but is anything being done and should the rest of us be concerned?

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Uncertainty in the Housing Market in June

The National Association of Estate Agents (NAEA) have reported that although the number of houses on their books fell slightly in June, the number of house hunters rose.

The RICS (Royal Institute of Chartered Surveyors) report gives the opposite picture, with the number of house buyers down and housing stock up.

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Bank of England Maintains Bank Rate

The Bank of England has maintained the help to the economy and the property market by leaving bank rate at 0.5% for another month.  

The Bank Rate was previously changed by a reduction of 0.5 percentage points to the current 0.5% on 5 March 2009.  This will no doubt encourage the property mortgage rate for the majority of lenders to stay at relatively low levels. 

Building Survey and Valuation data has shown that the general property market is relatively active for those able to pay larger deposits.  The extent of the recent stamp duty changes on property sales has yet to be accurately established.   Many lenders are charging higher rates and limiting the availability of funds to those with smaller deposits available for property purchases.

8 April 2010

Has New Optimism Entered the Market?

Whilst the annual shift in house prices for the 12 month period across the whole of England and Wales rose to 2.5% over the whole spectrum of residential property, according to the Land Registry, the numbers of transactions in the lower end (sub £175,000) of the market rose approximately 8% above normal.   For the rest of this article, click here

Your Home is not your Castle

Did you realise that almost 20,000 council workers now have the right to enter your home without a warrant or police escort? 

Research has disclosed that the average local authority now has 47 employees who are authorised to enter your private home without a warrant and in some councils there are hundreds of these inspectors. 

Believe it or not, in some instances it is possible to enter your home to clarify the the energy rating on your fridge and to measure your garden hedges.  To read the full article, click here.

End of Recession Item

The economic forecasting group Ernst and Young Item Club has reported today that not only are we officially out of recession, but that the next decade is likely to see a period of slow growth which will see a period of adjustment.  They report that there will be a greater reliance on the world economy, with especial regard to the rate of growth in the Export sector as the worlds economy expands levels of trade by an estimated 23% over the next three years.

The pound not being prevented from adjusting, as is an economy tied into the eurozone, will undoubtedly assist the prospect of exports by helping to make our exchange rate more internationally competitive.

Official figures to be published on January 26 are widely expected to show that Britain finally emerged from recession in the final three months of 2009, the last major economy to do so.

The outlook however is for possibly only GDP growth of 1% in 2010, with 2.5% in 2011 and 3% in 2012.

The report also casts aspursions on the budgetary figures provided by the Chancellor.

To read the full report click here .

The ITEM club or Independent Treasury Economic Model is an economic forecasting group based in the United Kingdom. It produces quarterly forecasts, which are often mentioned in the UK news media. It was founded in 1977 and is sponsored by Ernst & Young a leading firm of business and financial advisers.  Founded in 1977, ITEM is said to be independent of any political, academic or commercial bias. Its independence is underpinned by the untied sponsorship of Ernst & Young.

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Editor 18th January, 2010