March 2008
RICS Data predicts future market trends

A matter of days after soothing words on the prospects for UK house prices for 2008 were issued by the chief economist of Britain's largest Mortgage Bank (The Halifax), the Royal Institute of Chartered Surveyors released data today which shows the worst margin between rising and falling house prices since the height of the 1990's property crash.

The RICS data shows that only 4% of surveyors reported a price rise against 57% reporting price falls, thus resulting in a net negative reading of 53%, which seasonally adjusts to a 64% negative reading, the worst since June 1990. Stocks of unsold inventory continue to build up on surveyors books to levels not seen in a decade and up more than 50% over the last 12 months.

Sourced from The Market Oracle

December 2007
2008 could be ‘buyers’ year of opportunity

Next year will bring a decline in the housing market, but this will create new opportunities both for potential home buyers and investors, an estate agent has said:

Steve Ludlow, a director of Ludlow Thompson, said the slowdown will create more of a buyer's market, meaning many people who could not get on the housing market due to affordability constraints may be able to do so as some people lower their prices to ensure a sale. He said a number of public sector employees "may well see [price falls] as an opportunity - providing money's available at an attractive rate".

As well as this, he suggested, those with existing homes already could use the situation to add to their portfolio, explaining: "Other people will decide to let out their current property, and buy another property while prices are down," adding that the first property could then be sold on when the market picked up again.

Recent house price surveys have indicated falls in the average house value in the UK, with Halifax and Nationwide showing drops of
1.1 per cent and 0.8 per cent respectively.

Sourced from What Mortgage?

June 2007
Increase in Off-set Home Loan Mortgages ?
Last year, 170,000 offset mortgages, worth nearly £30bn, were taken out, a 49% increase over the past year, according to the BBC Business website. It is suggest that the increased popularity is due to offset mortgage rates becoming more competitive when compared to fixed rate loan deals.

Andrew Montlake, director of mortgage brokers Cobalt Capital, stated that "Fixed-rate mortgage rates have gone up making offsets more competitive". He added "I think that, finally, after more than a decade, the offset mortgage concept has eased into the public consciousness."

Activity in UK's robust housing market is starting to slow after three interest rate rises in the last eight months, the Bank of England governor said recently.

Mervyn King's comments to a parliamentary committee were backed by data from the British Bankers' Association showing seasonally adjusted new mortgage approvals at their lowest level since July 2005, supporting other evidence that activity is subdued outside hotspots such as London and the south-east.

Mr King's remarks, which come after a decade of 11% a year house price rises, pushed the pound down 0.3%, taking it to $1.9627. "The market was unprepared to have that kind of comment coming from Mr King," said Ian Stannard, foreign exchange strategist at BNP Paribas.

Sourced from Guardian Unlimited