Property Renovations Ely Ltd

The price of a typical house fell by 1.9% in August according to the Nationwide.

This means that house prices are 10.5% down year on year, the building society said. The average home now costs £164,654 which is more than £19,000 cheaper than in the same month last year.

Commenting on the figures Fionnuala Earley, Nationwide’s chief economist, said: “The price of a typical house fell by 1.9% in August, bringing the annual fall into double digits for the first time since the fourth quarter of 1990. The price of a typical house fell by 10.5% over the last twelve months to £164,654. While the pace of monthly falls picked up during the month, the less volatile three month on three month measure, eased very slightly in August to 4.5% from 4.6% in July.

“Estate agents’ data across all property types is a little more optimistic and suggests that there may be some glimmers of interest returning to the market. Agents report an improvement in new buyer enquiries, perhaps stimulated by the recent falls in prices and the opportunity to negotiate a good deal. However, the reported numbers of sales have not been encouraging.

“There is clearly less mortgage borrowing taking place in the current market, but those borrowers choosing a new loan are tending to opt for fixed rate loans, even though they have been more expensive than trackers.

“The August Inflation Report struck a markedly more dovish tone than in May, even though inflation is at its highest level since 1992 and at more than twice its official target. There is still a great deal of uncertainty, but the Bank of England’s forecasts of growth and inflation have been widely interpreted as opening the door to rate cuts.

“Market rates have reacted to this and as a consequence mortgage rates, particularly fixed rates, have continued to come down. We expect the next move in the Bank Rate to be down, but the extent to which this will revive the mortgage and housing market is likely to be limited while overall confidence in economic and housing market conditions is low.”

Property Renovations Ely Ltd

A panel of economists has delivered a worrying prediction about the future of UK house prices…

A survey of the Society of Business Economists (SBE) members conducted by ITV1’s Tonight programme found that 60 per cent of economists do not expect prices to recover to the pre-credit crunch peak for at least four years.

The majority of the poll identified 2009 as the year when house prices will hit rock bottom, with most of the sample predicting that they will have fallen by 20 per cent from the peak of the market by then. However, one in five forecast a falls of 30 per cent - which would see the value of a home cut by £60,000.

Heriot Watt University vice-chancellor Anton Muscatelli told MPs: “There is a risk that people will begin to see current inflation levels as the norm and demand pay increases to match. Unless we see inflation falling later on this year… we will see inflationary expectations stick at the current levels which are around 4%.”

Bronwyn Curtis, chairman of the SBE, said: “It doesn’t look like we’re going to see a fall, which is what we’re in the middle of, and a quick bounce back. It does look as though it’s going to go on, and we’ll have slow growth for some time.

“On top of that, house prices were overvalued, according to most economists, and so you have the situation where they remain undervalued for a long time. As the economy slows we will get unemployment … and there will be much less pressure pushing for wage hikes.”

Roger Bootle, of consultancy Capital Economics, added “If the Bank of England doesn’t cut rates quickly enough as inflation subsides there is a risk the economy will be extremely weak, perhaps in recession and said inflation could fall well below the Bank’s 2% target”.

Property Renovations Ely Ltd

US investor Texas Pacific Group is to buy a 20% stake in Bradford & Bingley for £150 million.

It follows a profits warning by the buy-to-let lender, which announced that profits for the year would be down about £100 million.

The move comes as its chief executive, Stephen Crawshaw, resigned with immediate effect because of “a serious cardiovascular condition”.

Property Renovations Ely Ltd

With 150 estate agent offices currently reported to be closing every week, Jonathan Haward, Managing Director of The County Homesearch Company says the face of the high street estate agency will change forever, and in today’s market only the very best will survive…

Property Renovations Ely Ltd

With March mortgage approvals down 46.2% on 2007, the UK is certainly feeling the gloomy global economic conditions. Credit crunch has quickly become part of our vernacular, but has it entered your home yet?

Whether you’re a homeowner, a parent, retired or a student, let us know your experience of the credit crunch to date, and what you’re doing about it. Maybe you’re worried about mortgage repayments, or perhaps you’re wondering what all the fuss is about? Whatever your situation, we want to know.

Has your credit been crunched?

Property Renovations Ely Ltd

The UK’s fastest growing dedicated property investment event returns to the NEC for a second year 11 - 13 April 2008.

This exhibition is the property event for serious investors. So if you are considering buying residential or commercial property for investment purposes - in the UK or abroad - this show will answer all of your questions.

Features property and property related services from approximately 100 exhibitors including major house builders, developers, estate & letting agents, lenders, brokers, property investment training companies, landlord associations and other leading property experts … many of whom will be appearing at the show for the first time.

Property Renovations Ely Ltd

The quarter-point cut is the third since December and comes amid signs of gathering economic gloom, with figures earlier this week showing that house prices fell 2.5% last month - the biggest monthly drop since the property crash of the early 1990s.

The decision will be a welcome boost to cash-strapped borrowers, already under pressure from soaring inflation. Monthly repayments on a £100,000 mortgage will fall by £16 if lenders pass on the cut in full, reducing them from £722.80 to £706.77 a month, based on a new rate of 7%.

Property Renovations Ely

Attending the London PNC this evening which will focus on “How To Find Motivated Sellers”, i.e. BMV - Below Market Value Properties.
Guest speaker, Parmdeep Vadesha who is in his mid-twenties earned his “Millions” and will explain his strategies and methods to become successful in todays property market…