The Royal Institute of Chartered Surveyors (RICS) report confirms that the UK housing market is in countrywide meltdown mode. House prices are falling at their fastest pace in 30 years (since records began). The net balance between those reporting price rises against price falls deteriorated to a reading of -78.5 in the three months to […]

Gordon Brown having bottled out of an October 2007 election ahead of an economic slump during 2008 and 2009, is now attempting to prepare the ground works for an 2009-2010 election by giving the Bank of England the green light to print as much money as is necessary to enable the UK banks to restart […]

Following Thursdays UK interest rate cut to 5% from 5.25%, which followed unprecedented action by the Bank of England in providing £15 billion in liquidity to the UK banking system in recent weeks. So far the interbank market has failed to respond to these actions, which saw the 3 Month Libor rate / base rate […]

Economic events in the United States often provide a sneak preview of what’s around the corner for the British economy. Both countries run large external trade deficits, and much like the US, the British economy has been expanding on little else than the availability of easy credit and asset price inflation in the housing market. […]

The Bank of England is expected to cut UK interest rates to 5% at today’s MPC meeting following a slump in UK house prices that saw a 2.5% fall in March (Halifax:SA). Interest rates were last cut in February 08 which was inline with the Market Oracle forecast as of August 07 and […]

UK house prices plunged by 2.5% in March (Halifax seasonally adjusted), the fall was far bigger than estimates and points to an acceleration in the pace of house price falls across the UK.
The credit crisis is continuing to lead to a much tighter mortgage lending environment as highlighted in December’s article. Mortgages continue to vanish […]

The UK housing market continues to trend lower towards the Market Oracle forecast of negative house price inflation on release of Aprils house price data in May. The Housing market was hit today by further news of withdrawal of more mortgage products that has seen the mortgage products market now shrink by 2/3rds from a […]

House price growth slows to lowest level in twelve years
Clear change in consumers’ housing market sentiment
Outlook more downbeat, but within forecast range
MPC expected to bring rate cut forward to April

Headlines
March 2008
February 2008

Monthly index * Q1 ‘93 = 100
360.5
362.6

Monthly change*
-0.6%
-0.5%

Annual change
1.1%
2.7%

Average price
£179,110
£179,358

* seasonally adjusted
Commenting on the figures Fionnuala Earley, Nationwide’s Chief Economist, said:“House prices […]

It can be confusing watching UK broadcast TV housing market programming, as I am finding that the property shows being aired are more often repeats captured from the heights of the housing boom. Viewers could be confused into thinking that what they are watching is current programming as usually there is no clear indication of […]

The fallout from the credit crunch and predicted falling house prices have forced lenders to consider their positions in the market and reassess their attitude to risk based lending. Denise Harvey, mortgage analyst from moneyfacts.co.uk looks at the position of the UK’s largest lenders in today’s market.

“Research carried out by moneyfacts.co.uk shows that, […]

It seems that the effects from the credit crunch on the sub prime mortgage market are far from over. Julia Harris, mortgage analyst from moneyfacts.co.uk looks at recent changes to the ever-depleting market. “Over the last week we have seen a host of sub prime lenders including Amber Homeloans, Scarborough Specialist Mortgages and SALT cease […]

On the eve of the launch of the first ever Moneyfacts mortgage report “Tougher times in the UK residential mortgage market”, Andrew Hagger of Moneyfacts.co.uk comments on the following topics:

Government intervention required to help the first time buyer
“The current stamp duty threshold set at £125,000 is totally out of line with the […]

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 […]

New figures published by the Financial Services Authority (FSA) today show that one in five mortgage holders are concerned about meeting their repayments in the next 12 months. When asked how they would meet these costs, a quarter of them said they had no plans.

The FSA is now launching a £2 million advertising […]

Seasonally adjusted house prices fell in February by 0.3% to £196,649 (Halifax:SA), a fall of £600. None seasonally adjusted house prices are now down £7,600 since the peak made in August 2007 which equates to an average drop of £1,266 per month in equity. This is against an interest rate implied cut of 0.5% on […]

House prices fell by 0.5% in February, the fourth consecutive monthly decline
The annual rate of house price inflation fell from 4.2% to 2.7%
UK recession “a remote risk for the UK economy”

Headlines
February 2008
January 2008

Monthly index * Q1 ‘93 = 100

363.3

365.0

Monthly change*

-0.5%

-0.3%

Annual change

2.7%

4.2%

Average price

£179,358

£180,473

* seasonally adjusted

Commenting on the figures Fionnuala Earley, Nationwide’s Chief […]

The British Bankers Association mortgage lending statistics reveal a contraction in the total amount of outstanding mortgage debt amongst its UK member banks, of nearly £6 billion from the peak set in October 2007. Whilst the amount may seem small in terms of the size of total mortgage debt of some $1.2 trillions, it is […]

Results from the Council of Mortgage Lenders this week have shown an increase in the number of loans taken by buy-to-let landlords in 2007. With first time buyers finding it increasingly difficult to get onto the property ladder, it might be expected that private landlords are having it easy. Alan Harper, Senior Analyst at Moneyfacts.co.uk […]

Hometracks house price data released on Monday points to house prices in England and Wales falling for 5 straight months in a row as banks tightened lending criteria as the risks of residential housing market bad debt exposure continues to grow. Annual UK house price inflation fell to a near 2 year low of 1.4%. […]

UK House prices fell by £4,000 (2.1%) in January 2008 (Halifax), the average price falling to £191,275, down £9,806 (4.8%) from the August 2007 peak of £201,081. The Market Oracle forecast as of August 2007 is for a fall in average house prices of 15% over two years to August 2009. UK interest rates were […]

Mortgage lenders have called for tighter rules to stop possible mortgage fraud involving the sale of newly built city-centre flats.

Panorama: Bursting the House Price Bubble, BBC One 8.30pm Monday 4 February 2008

The Council of Mortgage Lenders (CML) said that a slowing market could tempt some developers into offering greater “incentives” […]

With speculation rife that the Monetary Policy Committee will cut base rate again next week, mortgage lenders have been preparing for the potential increased demand by increasing margins offered on tracker rate mortgages. Denise Harvey, mortgage analyst at Moneyfacts.co.uk investigates.
“In the last two weeks alone, analysis from Moneyfacts.co.uk has revealed that 10 lenders have increased […]

House prices fell by a modest 0.1% in January, the third consecutive monthly decline
The annual rate of house price inflation edged down from 4.8% to 4.2%
Housing market conditions have loosened further, but there are tentative signs that demand may have bottomed out

Headlines
January 2008
December 2007

Monthly index * Q1 ‘93 = 100

365.9

366.4

Monthly change*

-0.1%

-0.4%

Annual change

4.2%

4.8%

Average […]

UK house prices slumped in the quarter to December 07, with London leading the way as momentum gathers towards the 2 year forecast for an average decline of 15% by August 2009. The mortgage banking sector is only just beginning to feel the impact of the housing slump as the number of foreclosures (repossessions) is […]

The US Fed’s emergency 0.75% interest rate cut to 3.5% following the global stock market plunge on fears of a looming US recession now increases the probability of a near certain cut in UK interest rates at the February MPC Meeting, rather than at the originally forecast March MPC meeting. Whilst the US has made […]

By: Darryl_R_Schoon
The address of the Bank of England is Threadneedle Street , EC2 London. Martha and I could not have been closer. On Christmas day, we were at the Threadneedles Hotel at 5 Threadneedle Street . But proximity to the Bank of England is measured not by distance but by influence. Those closest to the […]

The Bank of England held interest rates at 5.50% following Decembers 0.25% cut from 5.75%, with the trend inline with the Market Oracle forecast as of 22nd August 07 for UK interest rates to fall to 5% by September 2008.
Yesterdays news of the continuing deterioration of the UK economy as over indebted consumers cut back […]