House Prices Still Cooling
Recent figures produced by the DCLG (Department for Communities and Local Government) suggest that annual house price inflation is continuing to fall.
Despite a slight price increase in December by 0.4% the DCLG said the annual rate of house price inflation was 9.1%, down from 9.7% in November. The average home in the UK is now estimated to cost somewhere in the region of £219,591.
With leading mortgage lenders forecasting the property market to be flat throughout 2008 these latest figures, covering the last 3 months of 2007, are enough evidence to indicate that house prices are continuing to drop.
It is thought that the price rise seen between last November and December came about as a result of a price increase in detached houses (up 1%), terraced houses (up 0.6%), flats (up 0.5%) and semi-detached homes (up 0.2%). Unfortunately, these slight price increases were offset by a substantial fall in the cost of bungalows, down by 2.3%.
Even the figures put forward for January by the UK's two leading mortgage lenders, Halifax and Nationwide, revealed signs of a continuing fall in annual house price inflation. However, statistics put forward by the DCLG are said to fall behind other house price indexes since they reflect actual sale completions rather than mortgage approvals.
The reasons behind the cool-down stem from the global credit crunch and as a result the UK is now experiencing a tighter market with weaker customer demand. Increased fuel and food prices have also contributed to the decrease in consumer confidence.
Last week the Monetary Policy Committee dropped the Bank of England base rate for a second time from 5.5% to 5.25. Economists are predicting further cuts to take place throughout the course of the year.
Published on February 12, 2008
Digg | 
del.icio.us | 
StumbleUpon | 
Reddit | 
Yahoo! | 
My favourites
Latest Finance Articles
Darling's Budget Report Highlights
Chancellor Alistair Darling delivers his first Budget Report yesterday. Highlighted in this article are some of the main points... Read More
March 13, 2008
Lending Falls Again Says CML
The amounts borrowed by first-time buyers and home movers continue to drop as the credit crunch takes further grip on the UK mortgage market. Remortgage activity is on the increase as many switch from fixed-rate deals to tracker mortgages in anticipation of further base rate decreases from the Bank of England... Read More
March 12, 2008
10 Tips To Improve Your Credit
Now more than ever our credit rating affects our ability to borrow credit. Here are 10 tips to help you improve your credit score... Read More
March 7, 2008
Interest Rates Kept At 5.25%
Yesterday, 6th March, the MPC decided to keep the base rate at 5.25 per cent. This decision was to be expected as the Bank focuses on the pressures of rising inflation and a slowing economy. Analysts are predicting another cut to 5 per cent to happen in May unless economic conditions weaken substantially. Whilst some feel the MPC shouldn't wait too long before the next cut, many agree with yesterday's decision... Read More
March 7, 2008
20 Per Cent Of Homeowners Fear Repayments
The UK's financial watchdog, the FSA, published a survey of over 500 mortgage holders which revealed 1 in 5 are worried about being unable to keep up with their mortgage repayments. It is estimated that 1.4 million fixed-rate or discount deals will expire this year raising monthly repayment amounts. Twenty five per cent of those surveyed admitted they had no contingency plans to meet these costs... Read More
March 6, 2008
Refer a Friend
Why not tell a friend about Money Outlet? Click here
