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gruffydd

Halifax Expects Further Price Falls

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http://icwales.icnetwork.co.uk/0100news/02...-name_page.html

Welsh house prices fall as families' bills rise Jul 7 2006

Tomos Livingstone, Western Mail

HOUSE prices fell in Wales last month as worries about high energy bills and rising unemployment took their toll on the market.

Prices in Wales fell 0.8% in June, with prices across the UK down 1.2%, according to the Halifax. The Halifax figures are seen as a reliable indicator of the state of the market due to the building society's position as Britain's biggest mortgage lender.

Halifax said the fall in Welsh prices showed there were "increasing affordability difficulties" after the huge house price boom seen here in the past few years. Prices had gone up 97% in the past four years, Halifax said.

The average price of a house in Wales was now £149,223, the report said.

It also said that it expected prices to fall further throughout the year. "Substantial increases in utility bills and above inflation council tax rises are putting pressure on householders' finances with the majority of the impact of these increases yet to be felt," it said.

"Recent upward movement in the pricing of fixed rate mortgages and mounting speculation of higher interest rates are also likely to constrain demand. Additionally, the ongoing historically high level of house prices relative to average earnings will curb housing demand."

The overall fall in housing prices across the UK was the biggest monthly fall since October 2000. The figures are broadly in line with those recently reported by Nationwide which also showed a cooling in the property market.

The building society said prices inched ahead by just 0.3% during June, following similar rises of 0.2% in May and 0.1% in April.

Martin Ellis, Halifax chief economist, said, "The fall suggests the heat is coming out of the market. The strength of demand we saw in the early part of this year is softening.

"I suspect it is speculation about interest rates and the fact that some of the pent-up demand seems to have been released after the rate cut last year.

"Other factors that constrain demand are bigger utility bills, the steady upward trend in unemployment and high house prices in relation to earnings across the country."

Meanwhile the Bank of England kept interest rates unchanged at 4.5% for the 11th month in a row yesterday.

The decision from the Bank's Monetary Policy Committee (MPC) had been widely forecast in the City, although commentators think the Bank may still raise the cost of borrowing before the end of the year.

Plaid Cymru leader Ieuan Wyn Jones said the Government was not doing enough to help first-time buyers. He said, "The reality is that the market in Wales has risen so much that a generation of young people cannot get on the ladder.

"We believe that the Government has to put substantial funds in to help young people who want to live in their communities. Prices have gone up even in areas where wages are low."

He said the amount of money allocated to the Assembly Government's Homebuy scheme was so low it only "scratched the surface" of the problem

Edited by gruffydd

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http://icwales.icnetwork.co.uk/0100news/02...-name_page.html

Welsh house prices fall as families' bills rise Jul 7 2006

Tomos Livingstone, Western Mail

HOUSE prices fell in Wales last month as worries about high energy bills and rising unemployment took their toll on the market.

Prices in Wales fell 0.8% in June, with prices across the UK down 1.2%, according to the Halifax. The Halifax figures are seen as a reliable indicator of the state of the market due to the building society's position as Britain's biggest mortgage lender.

Halifax said the fall in Welsh prices showed there were "increasing affordability difficulties" after the huge house price boom seen here in the past few years. Prices had gone up 97% in the past four years, Halifax said.

The average price of a house in Wales was now £149,223, the report said.

It also said that it expected prices to fall further throughout the year. "Substantial increases in utility bills and above inflation council tax rises are putting pressure on householders' finances with the majority of the impact of these increases yet to be felt," it said.

"Recent upward movement in the pricing of fixed rate mortgages and mounting speculation of higher interest rates are also likely to constrain demand. Additionally, the ongoing historically high level of house prices relative to average earnings will curb housing demand."

The overall fall in housing prices across the UK was the biggest monthly fall since October 2000. The figures are broadly in line with those recently reported by Nationwide which also showed a cooling in the property market.

The building society said prices inched ahead by just 0.3% during June, following similar rises of 0.2% in May and 0.1% in April.

Martin Ellis, Halifax chief economist, said, "The fall suggests the heat is coming out of the market. The strength of demand we saw in the early part of this year is softening.

"I suspect it is speculation about interest rates and the fact that some of the pent-up demand seems to have been released after the rate cut last year.

"Other factors that constrain demand are bigger utility bills, the steady upward trend in unemployment and high house prices in relation to earnings across the country."

Meanwhile the Bank of England kept interest rates unchanged at 4.5% for the 11th month in a row yesterday.

The decision from the Bank's Monetary Policy Committee (MPC) had been widely forecast in the City, although commentators think the Bank may still raise the cost of borrowing before the end of the year.

Plaid Cymru leader Ieuan Wyn Jones said the Government was not doing enough to help first-time buyers. He said, "The reality is that the market in Wales has risen so much that a generation of young people cannot get on the ladder.

"We believe that the Government has to put substantial funds in to help young people who want to live in their communities. Prices have gone up even in areas where wages are low."

He said the amount of money allocated to the Assembly Government's Homebuy scheme was so low it only "scratched the surface" of the problem

Perhaps everybody is sick of the ignorants waffling in their own useless language & chucking bricks through your window 'cos you are an 'english scum' buying houses & decimating communities.

They'll soon realise that the only business they have is what we choose to share with them.

Their advert is almost correct, "The Big Country", just 2 letters too long.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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