House prices are definitely falling
The Royal Institution of Chartered Surveyors (Rics) has reported a continuation of house prices falling. Not only are property prices gradually dropping but so to is the number of potential buyers. Enquiries about properties for sale has reduced for the tenth month running.
Most experts are in agreement that this was expected due to a combination of several factors.
- There have been 5 interest rate rises over the past year which has seen the Bank of England raise the base rate from 4.25% to 5.75%.
- Mortgage lenders have stricter lending rules now amid worries of a sub-prime catastrophe like the US has experienced.
- Hips (Home Information Packs) were introduced on 4 bed and 3 bedroom houses which may have stopped people buying or selling due to the added cost and workload involved in getting these packs ready.
- A global credit squeeze hit us this summer and as a result has caused wariness and uncertainty in the financial markets.
Areas most affected by this downfall of property value is through East and West Midlands and East Anglia. Despite this drop, London and Scotland are still experiencing a gentle rise.
A drop in confidence of consumers and home-owners has lead to this decline in home-buyers applying for mortgages and people wanting to move home. The future is uncertain and people aren't wanting to take risks at present, as it could prove to be rather expensive for them, especially those with poor credit ratings.
A gloomy outlook could be on the horizon for the next few months.
Related Articles
Mortgage Exit Fees or Mortgage Exit Administration Fee (MEAF) as they are officially known, are a charge incurred when you finally get to that lucky moment when you fully pay off your mortgage. The MEAF is to cover general administration costs of ending your mortgage, including staff and legal costs and changing the property registration details with the Land Registry, so the property bears your name.
Read on...
With property prices on the increase, it can be difficult for some people to make that initial move and buy their first property. It's not such a problem for married couples or those who are co-habiting as they can apply for a joint mortgage. By combining both the applicants incomes, you will generally be given a bigger mortgage than if you were buying singly. A joint mortgage also means it could be easier to save up an initial deposit, if there are two of you doing it as a joint venture.
Read on...
Loans are often thought of as being a bad thing to have, or for many people it indicates that you are going through a rough patch financially. This isn't necessarily always the case. Loans are very useful things to have, provided you do it sensibly.
Read on...
The New Year seems to be a good time to sit down and think about your finances. It always seems much clearer at the beginning of a fresh year, before life generally carries you away. Making sure you review your current situation, make changes where they are needed and taking time out to think to the future are very necessary things we have to do, but so many people try and avoid them, worried about what they will find out.
Read on...
The world of finance has a host of different products and offers out there to entice the general public to want them. Some are very good value, some are very useful but there are always a few bad grapes in the bunch. So here is a short guide on the bad deals in finance - the ones to avoid.
Read on...
Related News Items
After the turmoil of the last few days, Northern Rock shares have risen around 8% as the government promises that the Bank of England will protect the deposits of existing Northern Rock savers.
Read on...
It is shocking how many people feel so bad about their personal debt that they feel they have to hide the fact from their partners. It has been revealed through a survey that many couples who are married or live together keep secrets about the amount of debt they are in.
Read on...
The UK's current Chancellor, Alistair Darling has revealed to the nation that the Personal Tax Allowance (PTA) for everyone is to be raised this year.
Read on...
The newest figures from the Bank Of England (BOE) prove to be a bit of a shocker. Numbers show that the amount of mortgages given out to new buyers has fallen significantly, by as much as 20%.
Read on...
