Economist.com: Britain's economy Domestic consumer spending, sustained by a housing bubble, kept Britain out of recession, but added to worries about its savings rate. In February 2003, the Bank of England cut its growth forecast, and in July 2003 Mervyn King, the bank's governor, slashed interest rates to their lowest level in 48 years, even though inflation was already above its target.
ThisisLondon: Rate rises 'not over yet' A STRONG warning of another rise in interest rates will be published tomorrow, ahead of this week's meeting of the Bank of England's Monetary Policy Committee.
Times Online - Flight from buy-to-let may spark crash NERVOUS landlords are selling their buy-to-let properties as interest-rate hikes begin to bite. New investors are not coming forward to plug the gap, raising fears that a retreat from buy-to-let could trigger a plunge in house prices.
INDEPENDENT: Homeowners boxed in as property prices wobble Talk of whether the property market is going to crash or not has become almost an obsession for those who like to discuss the value of their home around the dinner table. And last week's figures from the UK's biggest building society, revealing the first drop in house prices for three years, will not have made for comfortable conversations.
Telegraph: House price sanity Many readers will be surprised to find The Telegraph, of all newspapers, welcoming a fall in house prices. After all, we have been champions of home-ownership for 150 years. But we are not turncoats: we believe that order is at last returning to the market, and that this is nothing to worry about.
FT.com / Your money - Sarah Ross: Piling on debt Bank of England figures released yesterday show that lending to individuals has risen again - to just over £1,000bn in September, about £21,000 for each adult in the UK. Of this debt, £852bn is secured against property and the rest is consumer credit
Mortgage demand slows AGAIN THE number of people taking mortgages last month was just 89,000 – the lowest figure since August 2000. It is a sharp decline from the summer when mortgage approvals averaged 102,000, according to the Bank of England, and a peak of 132,000 last December.
Guardian: Economists warn of big tax rise Taxes will almost certainly rise in the next parliament by three pence in the pound if Gordon Brown is to meet his self-imposed "golden rule" for the public finances, leading economists said yesterday.
The Sun Newspaper: HOUSING CRASH ON CARDS? HOUSE prices have fallen for the first time in three years. Britain’s biggest building society Nationwide recorded a 0.4 per cent fall in October. This means the average home now costs £152,159 — down from £153,727 in September. That’s a drop of £52.27 EVERY DAY in the past month.
Headline news from Sky News: LIVING ON CASH KNIFE-EDGE Many Britons are living dangerously close to their financial limits, according to new research. A report by internet bank cahoot found that 27% admitted that even a small increase in their spending, such as a rise in interest rates or even paying for a holiday, would cause real financial strain.
Business World: UK growth to slow next year, says report The UK economy is set to grow around its trend rate over the next two years but inflation is set to rise towards the government's target as a tight labour market feeds through into higher wages, a leading think-tank said today.
Times Online - Digging themselves deeper into debt HOMEOWNERS in mortgage arrears are plunging themselves deeper in to debt by borrowing more as they battle to keep their property, the Citizens Advice Bureau gave warning yesterday.
Independent News: "House prices go into reverse as rate rises take their toll" House prices posted their first monthly drop in three years in October, Nationwide said yesterday. But the building society went on to say it felt a sustained period of falling prices seemed unlikely while the jobs market remained strong.
News & Markets: House prices 'could tumble 25%' FEARS of a housing crash escalated today after a top City economist said a fall of between 20% and 25% in property prices could not be ruled out.
Reuters: Q3 mortgage possession actions soar The number of court actions entered to repossess British homes in the third quarter rose to its highest level since early 2000, official data showed on Wednesday, a sign that dearer mortgages may be hurting.
Reuters: UK mortgage approvals down sharply in Sept The number of British loan approvals for home purchase fell 29 percent in September on a year earlier in a fresh sign the housing market is losing steam
Guardian Unlimited Money: Don't raise rates, CBI urges Bank of England Further evidence of the impact of record oil prices and a slowing world economy on Britain's manufacturers emerged yesterday as the CBI published a survey showing business confidence had slumped to its lowest level in over a year.
Western Daily Press: NO HOMES CRASH SAYS WESTBURY Housebuilder Westbury was able to shrug off any suggestion of a market meltdown yesterday with a 22 per cent leap in profits and an upbeat forecast. The Cheltenham group also raised its dividend by 20 per cent and promised double-digit growth in the payout for the long term.
ic Wales: HAS THE HOUSING BUBBLE BURST? People in Wales have spent the past few years watching as their homes have become transformed into gold mines. But can it go on forever, asks Darren Devine as he examines whether the housing bubble in Wales has burst
Reuters: GDP data may overstate weakness Official figures may be overstating the weakness of the economy in the third quarter, a Bank of England policymaker says.
Guardian: Inflation will remain stable, says Bank Inflation is set to stay low and stable despite some violent swings in the price of goods and services, a senior member of the Bank of England said today.
Times Online: Thousands of jobs to go in BBC shake-up THE BBC is finalising plans to cut up to a quarter of its 28,000 workforce in the biggest single reorganisation in its history. About 6,000 jobs are under threat from next year, although the final number of redundancies is yet to be decided, according to current thinking among BBC senior managers.
Find a Property: London Falling House prices fell in every borough in London last month as the market dipped by an average of -1.1 per cent, says Hometrack...October's fall follows last month's drop of -0.7 per cent and represents the fourth consecutive month in which London house prices have dropped. The average London house price now stands at £268,800.
ITV: House prices 'will keep on falling' Figures showed property price falls for the fourth consecutive month, down 0.6 per cent according to latest research, which predicts more falls to come.
Headline news from Sky News: OIL PRICES HIT NEW HIGH Oil prices have hit another record high above $55 a barrel as a strike by Norwegian ship owners threatens to halt production in the world's third biggest exporting nation.
Western Daily Press: HOUSE PRICES FALL MOST IN WEST Not a single county experienced a price rise. Analysts have denied the fall is a sign of an impending property market crash, even though this is the fourth consecutive month of falls.
Times Newspaper Edition: How house prices affect inflation THE TIMES is running a fortnightly economic briefing to coincide with Target 2 Point 0, the competition for schools run in conjunction with the Bank of England. Target 2 Point 0 challenges schools to play the role of the Bank’s Monetary Policy Committee (MPC) and recommend a level for interest rates.
Times Online: House prices fall as buyers wither away HOUSE prices have fallen for the fourth consecutive month, confirming that the boom in property prices is over. Figures for the property market in September, released today by Hometrack, an independent data company, reveal that the average house price fell from its peak of £167,000 in May to £165,800 — a drop of 1.5 per cent.
Reuters: Biggest drop in house prices in three years House prices in England and Wales fell in October at their steepest monthly pace in three years, property research company Hometrack says, the latest evidence of a once-booming market rapidly losing steam.
Chancellor: 'I won't risk economy'Chancellor Gordon Brown has faced down critics in the City and the trade unions by insisting he will not relax financial disciplines in response to threatened strikes and soaring oil prices. Economists have warned that Mr Brown is in danger of breaking his "golden rule" because of worsening Treasury finances.
housefund.co.uk: Property Crash Warning to the IrishThe Economist has warned of a property crash in Ireland - reports AIB bank. The Economist believes that house prices in Dublin are evidence of a "frenzy" and in a report on the Irish economy, it believes that house prices could fall drastically.
Scotland on Sunday - 75 years on from Great Crash GENERATIONS on from the Wall Street Crash that began its spectacular unfolding 75 years ago today, the drama and its repercussions still haunt us.
Times Online - The Market House prices are falling more rapidly than at any time since summer 1995, according to a survey of its members by the Royal Institution of Chartered Surveyors.
Times Online - The Market: Knock me down A new plague is stalking the shires. It strikes at random and the effect is deadly. Last seen during the housing crash of the late 1980s, gazundering is back.
Hometrack: House prices drop in all london boroughs (PDF) London bears the brunt of this month's house price falls. The October survey of the London housing market reveals an average house price fall of -1.1% following last month's drop of -0.7%.
Reuters: Sharp rise in million-pound house sales The number of British properties sold for more than 1 million pounds has surged in the first six months of 2004 after a fall in 2003, mortgage lender Halifax says.
BBC NEWS: Test your financial literacy Large numbers of Britons find financial products and jargon difficult to understand, a survey from the Institute of Financial Services (IFS) has said.
The Motley Fool UK: Reliving The Wall Street Crash This weekend marks the 75th anniversary of the 1929 Wall Street Crash. If you're not familiar with what is probably the worst disaster in financial markets, these ten points will bring you up to speed.
Find a Property: Move Or Improve?According to their research, almost half of all households - some eight million - are reluctant to move in the current market and are planning to invest in their home instead. David Bitner, head of product operations at Bradford & Bingley, blames high house prices and punitive taxes for the situation: "There are two key factors creating a stay put attitude: high house prices and costly stamp duty levels.
Daily Mail: THE SHAPE OF THINGS TO COME MERVYN King, governor of the Bank of England, believes the British economy is at a turning point. That much is clear from the minutes of the Bank's interest rate-setting committee, published yesterday.
Citywire: The Housing Boom is Over: "Building society gross advances amounted to just over �4 billion in September, compared with �4.3 billion a year before. Approvals, loans agreed but not yet made, fell dramatically from �5.1 billion in September last year to �2.8 billion this September.
Times Online - Retail sales surge revives rate fears Strong performances by mobile phone and carpet stores have prompted a surprise rise in retail sales figures and revived fears that interest rates may yet be raised again this year.
This Is Money: Falling house sales hits builders UNHAPPY housebuilders suffered from subsidence after one of the sector's biggest companies confirmed that the Bank of England's interest rate medicine is working.
Independent: Taylor Woodrow gives house sales warning Taylor Woodrow, the housebuilder, cautioned yesterday that sales will fall short of its previous estimate, causing the steepest decline in its shares in almost two years and dragging down the entire sector.
This is Money: Mortgage muddle MORE than one million borrowers could be putting their homes in jeopardy by not having any plans for repaying their mortgages. And a further 1.5 million who have put some money aside may still find their savings are woefully inadequate.
Reuters: Bank of England voted 9-0 for steady rates All nine members of the Bank of England's Monetary Policy Committee voted to keep interest rates unchanged at 4.75 percent this month, and there seemed to be no discussion of raising borrowing costs.
Reuters:Shares look attractive as housing market wanes The property market, seen for years as a one-way ticket to riches for the canny private investor, is cooling, which could mean some bolder individuals will look for returns in the share market.
Reuters: Have Interest Rates Peaked? The more interesting question when minutes of the October 6 and 7 meeting are published on Wednesday is whether or not they signal that borrowing costs have now peaked at 4.75 percent.
Times Online: House prices fall fastest since 1995 HOUSE prices have fallen at their fastest rate for nine years as the five interest rate rises over the past year have begun to bite, according to a leading survey.
Guardian Unlimited: Just a bit of inflation could burst this property bubble In the longer term, we risk an economic shock of some sort, perhaps a new bout of consumer price inflation requiring the Bank of England to raise rates, or a US downturn. Then the housing bubble could be an accident waiting to happen.
ThisisLondon: House price fall for fourth month ESTATE agents have warned that house prices have fallen for a fourth consecutive month. The National Association of Estate Agents said values fell 1.6% in September.
Telegraph | Money | Hedge your bets on house price moves: "A US website says it can protect homeowners from falling property values. And soon, as Liam Halligan and Philip Carter report, Britons may also be able to banish the fear of negative equity "
The Guardian | What a difference 40 years makes The average price of a British home has risen by almost 5,000% over the past 40 years, illustrating just how good a long-term investment property has been for many, according to figures published today.
Find a Property - HOUSE PRICE PUZZLES They're issued every month by various counting houses and discussed like sacred texts by concerned consumers. But do house price statistics really add up to an accurate representation of the market? And what exactly is an 'average' house?
Sky News - Brrrrrace yourselves! Britain is about to be hit by one of the coldest winters in recent memory, according to the same weather experts who predicted 2004's Summer would be a washout.
Sky News - RATE HIKES HIT BUILDERS Housebuilder George Wimpey has said the higher cost of borrowing is continuing to take its toll on the housing market.
Guardian Unlimited Money: Britain could be heading for a mild dose of stagflation Income Data Services, a thinktank on employment issues, predicted today that rising inflationary pressures would have a knock-on effect on wage bargainers over the coming months, a trend that could prompt the Bank of England to raise rates once more.
The Move Channel: Townies dream of rural bliss 27% of the UK’s metropolitan house-hunters are looking for property away from larger urban areas according to a major survey of the UK’s moving trends by national property website assertahome.com. 10% are greenshifting and want to move to the countryside while a further 17% are looking for a new home in small towns.
Reuters:Factory gate inflation hits eight-year high
Economists said on Monday the figures indicated that inflationary pressures were building in the supply chain and that showed it remained possible that the Bank of England will hike interest rates once more this year.
The Move Channel: Official house price growth falls to 13.6% House price growth in the UK slowed in August, falling to a 13.6% annual increase from a rise of 14.3% in July, figures released today by the Office of the Deputy Prime Minister (ODPM) showed.
Sky News - NEGATIVE EQUITY PERIL Homeowners are risking the problem of negative equity by continuing to borrow against the value of their properties while the housing market slows down.
This is Money: House buyers control the market
THE prices on the property details in the estate agent’s window haven’t yet been changed. But talk to the people in the office and they all say the same thing: the prices you see are just a starting point for negotiations, nothing more.
Property finance news - House buyers take their time The gentle "easing-off" of property prices is beginning to give house buyers new confidence to take their time choosing and strike hard bargains when they act, a new report reveals.
Scotsman.com News - Scotland - Panic selling fears as property prices cool "Sellers simply need to be more realistic about the prices they might achieve in the current market. It is less likely that the huge profits of the last few years are going to be made - not impossible - just less likely" - Wilson Hunter, senior partner Hunters PSM estate agents
Times Online - How the other half likes to bet YOU never meet a poor bookmaker, which is why a decision last week by the spread-betting firm IG Index to close its book on the property market could be met with gloom.
TheMoveChannel: House bubble book all fizz and no head A new book by city guru John Calverley warns that the UK housing market is currently in the "mother of all bubbles" and prices could slump by 30% before they return to their long-term average. But are the predictions by the Amex chief economist all froth and a bit too late?
Property Prices A Special Report Last week's prediction by Capital Economics of a 20 per cent fall in house prices generated its fair share of shock horror headlines in the national newspapers. The truth, though, to be though that at the moment no one has a completely clear picture of which way house prices are heading.
The Motley Fool: House Prices to fall 47%
'Prepare For A Property Crash', 'House Prices To Plunge' and 'House-Price Meltdown'. The papers have been full of scary property headlines of late.
Mortgage & Homes: Terminal decline One of the few remaining reasons for homebuyers to hang on to their duff mortgage endowments is fast disappearing. This is the terminal bonus, which used to give a massive boost to the maturity payout.
This is Money: The great house price muddle Homebuyers could be forgiven for being confused today as the country's biggest lender reported house prices rising last month, a second lender said confidence in the property market had fallen for the fourth successive month, and a leading City investment bank predicted stagnation in the housing market until 2010.
ThisisLondon: 'House prices to plunge' House prices will fall by 30 to 40 per cent during the next four years, one of the City's most successful fund managers has warned.
The Guardian | Crash course not on the agenda Now we seem to have reached that point and everyone is holding their breath to see whether there will be a soft landing, where prices drift lower over a number of years, or a hard one, when they plunge.
Find a Property - Ten Things Tenants Hate Competition in the London lettings market is fierce, but the most successful landlords are adept at picking the right properties in the right places and presenting them in the right way.
Freelance UK: UK house prices set to tumble First time house buyers are on high alert over fresh fears that a steep decline in property prices could be next for the UK economy.
