ThisisLondon: Top bankers fuel luxury boom Sales of Rolls-Royces, Bentleys and Ferraris in London are at an all-time high and estate agents are braced for a new boom in £1m properties, reflecting the return of soaring Christmas bonuses at the top end of financial markets.
Reuters.co.uk: House prices fall for sixth month House prices in England and Wales have fallen for a sixth consecutive month, research company Hometrack says, adding to mounting evidence that the property boom has ended.
Times Online: Pound tumbles on news of MPC’s rate cut debate "THE pound tumbled yesterday after it emerged that the Bank of England examined the case for a cut in interest rates this month, fuelling speculation that borrowing costs have peaked. "
The Guardian: Economy growth faster than expected"Britain's economy grew faster than previously thought in the third quarter while the current account gap rose to its highest level in more than five years, official figures showed today."
ThisisLondon: Evidence of house price fall House prices are ending the year lower than they began it in the capital. On average they are almost £12,000 lower than when the London market peaked in June, a survey reveals today.
This is Money | House prices | Two-year standstill for house prices Estate agent Knight Frank today warned that the housing market faces two years of virtual stagnation, although top-end properties in London's most sought-after areas can expect further modest price gains.
Guardian: Bank of England hints at interest rate cut Labour's re-election prospects received a boost yesterday when the Bank of England dangled the prospect of a cut in interest rates in the run-up to a likely spring poll.
Confidence In Housing Market Plummets Homeowners' confidence in the value of their homes has plummeted amidst speculation of a full-scale property-market crash, according to new research from Prudential's tri-annual Mood of the Nation Index. Indeed, only 30% of homeowners expect the value of their home to increase over the next 12 months, compared to 61% in March.
This is Money: More gloom for housing market"Fears of a UK housing market crash grew this morning as a closely-watched survey found more chartered surveyors reporting house price declines than at any time in 12 years."
BBC NEWS: House prices drop as sales slow"House prices fell further in November and property sale times lengthened as rate rises took their toll, the Royal Institute of Chartered Surveyors found. "
Telegraph:| Mortgage lending down by 25 pc"Mortgage lending has declined by a quarter since last year, according to new figures, providing further evidence of a slowdown in the housing market."
This is Money: Cut the price to sell your home"HOME owners who want to sell their properties are being warned to drop their prices by as much as 8% in the new year as sales face further stagnation. "
Reuters: House prices slip in December"LONDON (Reuters) - Asking prices on homes have dropped in the month to mid-December, property website Rightmove says, adding that they will need to fall further to again revive a rapidly-slowing market. "
Real Estate Gates - Houses prices continue to fall in UK House prices have been falling for the fourth month in a row in Great Britain. Scotland was the only region where property values have increased last month. “The proportion of its members reporting price falls was the highest for nine years”, surveys of the Royal Institution of Chartered Surveyors said.
Why do Brits emigrating in droves to continental Europe? Let me be frank here and say that Great Britain is not one of my favorite nations on earth. In 1969, I had a chance to attend the University College at Swansea, Wales, for my doctoral work; however, I opted for coming to Ohio, USA.
The Independent - Money Hundreds of punters were perched on the edges of their seats with gritted teeth and racing hearts. A spasmodic nod here, a twitch there, a hand in the air.
icWales - Market correction? It's here already Conflicting media reports that come out daily are confusing and while no-one can predict the property market for more than a few months at a time in a climate such as this, in South Wales it is certainly not as frantic as it was this time last year.
BBC NEWS: Where are house prices heading in 2005?"Booming double-digit price rises at the front end of 2004 have eased off towards the end of the year. Will the market bounce back, or are house prices heading downhill? "
Rampant Insider Selling Raises Red Flags NEW YORK - Talk about a double standard. While corporate leaders tout the benefits of investors owning their stocks, many executives seem to be running for the doors themselves.
Reuters.co.uk: Housing market cooled in October House prices in England and Wales were up 12.6 percent on the year in October, down from the 13.8 percent rate in the prior month, the Office of the Deputy Prime Minister says.
This is Money: Credit card threat to economy"SOARING borrowing on credit cards could threaten Britain's financial stability, the Bank of England has warned. Its latest assessment will raise serious questions over the current record debt levels. The Bank says they may be building up 'vulnerability for the long term'."
Guardian: Labour's fortunes are cemented to bricks and mortar values"Estate agents are twiddling their thumbs. Property is proving hard to shift. House prices are falling. The boom in bricks and mortar is over. So much, so obvious. After its phenomenal rise since the middle of the last decade, some correction in the housing market was overdue."
Scotsman.com: Cala warns of 'sideways' move in housing market"However, the group, which is 30 per cent owned by HBOS, warned that the UK housing market would 'move sideways' for a couple of years as prices level off and the planning system slows development. "
FT.com / Home UK - America's ominous housing bubble Nearly five years after the bursting of the equity bubble, America has done it again. This time, it is the housing bubble. But this speculative excess may be the cruellest bubble of all - and has already led to a sharp compression of national saving, a record current account deficit and an ominous overhang of personal indebtedness. The US was fortunate in avoiding the perils of a post-bubble carnage in 2000-2001. It may not be so lucky this time
Western Daily Press: RATES COULD FALL TO 3%, CLAIMS BOOTLE"Leading economist Roger Bootle expects the value of the pound to fall 'a long way' against the euro and dollar next year, he told an invited audience at Bristol's Mansion House last night. "
ThisisLondon: Housing crisis revealed
A new study has shown that the proportion of first-time buyers plummeted from 27 per cent of all buyers at the start of the year to 18 per cent at the end of the summer.
ShareCast: BoE holds rates at 4.75%"The Bank of England has kept borrowing costs on hold at 4.75% for the fourth month running after further signs of an economic slowdown. "
Citywire: First time buyer numbers drop dramatically"The proportion of first time buyers has fallen dramatically since 1993, nearly half had to pay more than £100,000 for a new home, yet the biggest housing problem is under-occupation."
ThisisLondon: Berkeley adds to housing gloom"UPMARKET housebuilder Berkeley Group has added to the gloom in the property market by reporting a sharp 28% fall in group reservations. "
Times: No storm clouds for housing market "The forecast for the housing market next year is one of 'bright intervals and scattered showers' rather than 'storm clouds', acciording to a prominent television academic."
moneyextra: First time buyers face four and a half year wait"It takes first time buyers six months longer to save for a 5% house deposit now compared to Q1 2004 and one year nine months longer than in 1994, when house prices began their meteoric rise. That's according to new research from National Savings and Investments (NS&I)."
Citywire: Bootle v Smith: house prices may slump"House prices are in for a 'hard landing', if you believe Capital Economic's Roger Bootle, who says the lack of first time buyers and low rental yields are a bad omen."
BBC NEWS: BBC move 'to boost house market'"The overhaul of the BBC dominates the newspapers, with the news many staff will be sent to Manchester hailed as a 'boost to the North'. "
FT.com / Home UK - Wary British shoppers depress high street sales Cautious shoppers caused sales to fall 0.2 per cent in November compared with last year. This was the first drop for 11 months and the worst November since 1988, said the British Retail Consortium and KPMG, the accountancy firm.
BBC NEWS | BBC shake-up to mean job losses BBC director general Mark Thompson will announce an overhaul of the corporation on Tuesday which could lead to the loss of thousands of jobs.
Times: Crunch the numbers"Is the market down? Up? Stagnant? Don't panic when you see conflicting house price headlines. Here is what they all mean for your home"
Times: Next generation of economists tells Bank to hold rates"THE sight on the screen is one most economists would beg to watch. The Monetary Policy Committee (MPC), normally so careful about its image, is going through its monthly interest rate deliberations on camera for the first time. "
Times: Recession fear as firms reveal fall in confidence"FEARS of a fall into recession are growing after a key survey found that manufacturers' confidence in the future has slumped and export margins are at their lowest for nearly three years. "
Times: Consumers just want to have fun, not houses"BRITISH consumers have not stopped spending. Far from it. Instead of borrowing to buy homes, they seem to be having a good time while waiting for interest rates to rise. "
themovechannel.com: End of falls in new home prices?"The average price of a newly built home in the UK increased by 2.7% last month to £268,724, according to data released from leading new homes website, SmartNewHomes.com. This is the first monthly increase since August and indicates that the new home slowdown is coming to an end."
Economist.com - The disappearing dollar THE dollar has been the leading international currency for as long as most people can remember. But its dominant role can no longer be taken for granted. If America keeps on spending and borrowing at its present pace, the dollar will eventually lose its mighty status in international finance.
SundayTimes: Bank told to hold rates"INTEREST RATES should stay at 4.75% when the Bank of England meets this week, according to the "shadow" monetary policy committee (SMPC). But some members say sterling's rise against the dollar could force the Bank to cut rates soon. "
The Observer - Estate agents 'face decimation' Up to 3,000 estate agents face the axe following a dramatic fall in mortgage lending, experts warned last night. The cull would be the biggest since the 1991 recession and would represent 10 per cent of the industry's total workforce of 30,000.
Times: Positively unable to shake my negativity"WE'RE doomed, doomed, I tell you. Overindebted and impoverished, with no savings, no pensions, no access to houses and no hope. The future is bleak for the under-30s."
Guardian: Halifax first lender to predict house price fall"Reporting that house prices fell again last month, Britain's biggest mortgage lender said it expects prices to drop 2% in 2005, although this will mask significant variations around the country."
FT: UK housing market set for "measured slowdown""The last time the UK's largest mortgage lender forecast an annual fall in house prices was 15 years ago when the previous crash was already under way. "
BBC NEWS - Head to head: UK house prices The UK's biggest mortgage lender, the Halifax, has said that house prices fell by 0.4% in November, and will drop by 2% in 2005. It is the latest in a growing line of surveys that show demand is weakening and sales are falling. Is the UK house-price boom definitely over?
Guardian: Rents soar as homebuyers bide their time Rents are rising at their fastest rate for more than three years as nervous potential homebuyers opt to delay taking their first step on to the property ladder, according to a survey published today.
The Age (AUS) - House price crash warning House prices in Australia could fall by as much as 10 per cent next year with the latest price index showing a fall for the first time in four years, one of Australia's largest mortgage brokers said today.
Reuters: Housing market keeps cooling"House prices fell for a second straight month in November, mortgage lender Halifax says, while predicting property prices will fall 2 percent in 2005 after nine years of gains."
Guardian: Halifax forecasts 2% house price drop"Banking giant Halifax today said that house prices would fall by 2% fall next year and that interest rates had peaked. Its negative outlook for the property market is in contrast to the 2% rise predicted by the Nationwide building society and Bradford & Bingley earlier this week. "
Times: Mortgage giant warns of house price falls"Britain's biggest mortgage lender has called time on the property boom, warning that house prices are set to fall next year for the first time in a decade."
Motley Fool: Facing Up To Falling House Prices"The bad news emerging from the housing market has been mounting up. Recent updates from Nationwide and Halifax show prices down from their summer highs, while estate agents and surveyors have reported a sharp drop in volumes during the autumn. So if you're a property owner keen to sell, successfully marketing a home now requires getting into the right frame of mind. "
Guardian: Water bills on the rise again"Water companies in England and Wales will be allowed to increase bills by an average of £46 over the next five years, the industry regulator Ofwat announced today. "
This is Money - Mortgage misery in old age MILLIONS of owners who believe their homes will provide them with a pot of gold when they retire could end up in hardship instead.
Mirror.co.uk - LOAN DANGER BRITAIN'S biggest building society last night predicted that interest rates will rise next year - even though the housing boom is fizzling out.
Guardian Unlimited | The Guardian | Danger - falling dollars The sharp fall in the dollar on the foreign exchange markets - and the consequent rise in the value of the euro - may seem like problems that are of little direct concern to the UK, which never signed up to the euro in the first place. That would be a serious mistake. If the US economy is propelled into a crisis by a free-falling dollar the whole of the rest of the world will feel the reverberations.
Times Online - Inflation 'will force rate to 5.5% next year' INFLATIONARY pressures could force the Bank of England to raise interest rates to 5.5 per cent next year, despite the slide in the housing market, the Organisation for Economic Cooperation and Development said yesterday.
Times Online - House prices 'will slow' BRITAIN’S biggest building society yesterday predicted a “year in the doldrums” for the UK housing market, with prices expected to rise by just 2 per cent on average in 2005.
The Independent - Brown must choose cuts or tax rises, OECD warns Gordon Brown will have to raise taxes or cut spending to stay within his "golden rule" on the public finances, a global financial watchdog warned on the eve of the Chancellor's keynote pre-Budget report.
The Independent - House prices set for 'soft landing' House prices will rise just 2 per cent in real terms next year, the Nationwide building society said yesterday despite reporting an unexpected surge in prices last month.
FT.com - Sterling hits 12-year high against dollar Sterling surged to a 12-year London closing high of $1.9077 to the dollar on Tuesday as the market scaled back expectations of UK interest rates cuts in 2005.
FT.com - Strong PMI data make UK rate rise more likely A gush of new orders pushed up British manufacturing activity in November at the fastest pace since July, but decade-high input costs led to the highest hikes in output prices since the series began five years ago.
FT.com - Deficits will hurt next generation, OECD says Leading countries that continue to run persistent budget deficits are "sacrificing" their children, the Organisation for Economic Co-operation and Development warned yesterday.
FT.com - OECD says UK needs more rate increases The Bank of England should raise interest rates three more times by the end of next year, taking its main rate to 5.5 per cent, according to the Organisation for Economic Co-Operation and Development.
