Property prices have dropped for the third month in a row and the bank of England is feeling the pressure to cut interest rates as trading slows this Christmas.
Jonathan Davis who spoke on behalf of House Price Crash during the BBC program predicts that properties valued at £300,000 will fall to an astonishing £200,000. Great news for first time buyers, not so great news for property developers.
The inevitable correction in the housing marking has been awaited by many trying to get on the ladder, will this finally be the crash all first time buyers have been hoping for?
According to mortgage lender Nationwide, UK house prices have seen the sharpest fall during November than recorded in the last 12 years. In some areas the fall has been by as much as 0.8% from the beginning to end of the month.
Mortgage lenders are being less generous with their money and we have seen a 12% decrease from September in mortgage approvals and a 31% decrease since October last year.
A cool down in the market has been a hot topic of discussion throughout 2007, is the market finally correcting itself?
Gordon Brown will not call a general election this autumn, Cameron must be kicking himself after the effort he put into that speech! Brown has decided that the election would be too soon after the departure of Tony Blair and he wants to develop housing, health and education further. To be honest I think David Cameron’s speech shocked him a bit, he gave a well presented talk about his plans for the country and I think many people would have been quite taken back with him.
Since Blair left, Brown has had a lot to live up to, we have recently seen foot-and-mouth disease in the UK, floods and a financial crises. What will Brown have to come up against next?
Following on from the bank charges scandal (which I think most people would have heard about by now), there is another consumer rebellion in the finance industry that I’ve noticed; mis-sold PPI reclaims. It seems a number of firms have been mis-selling the payment protection insurance (PPI) which is used to cover loans. The Citizens Advice Bureau noticed this some years ago, and published information on their concerns.
It’s taken a while but now the Financial Service Authority have looked into it and concurred with the Citizens Advice Bureau, seeting out a number of fines. This has prompted people to start reclaiming their mis-sold PPI from the companies responsible. Many industry analysts believe this mis-selling could be quite widespread and that, potentially, millions of people could have a valid claim.
The big question bouncing around this week is “Will the UK’s debts drag the economy into a recession?”. The average household owes almost as much as their yearly earnings now, money has been too easy to borrow and naturally the UK has taken advantage of the situation allowing for bigger and better assets and more disposable incomes.
Huge crashes in the US stock market today have affected countries all around the world, banks are likely tighten their lending habits as the level of risk continues to increase. Will interest rates rise again to dampen consumer spending even more? Will US house prices continue to fall? I can’t help but wonder, “Is this the beginning of the end?” And by that I don’t mean the end of mankind (obviously) I mean the end of the housing boom!
Clearly a recession is a less that ideal situation for the economy, but unfortunately I personally think that’s where we’re heading.
Mortgages and loan repayments continue to increase throughout the UK with interest rates now risen another .25% to 5.75%. Seriously, how long can this continue for? We have already been warned that the price of flats are levelling off due to less demand, so how long can it be until the next house price crash?
Are we going to be a generation of renters, I hope not – it’s totally unfair that our generation cannot afford to buy a family home. Who wants to live in a two bed flat for the rest of their lives, I know I don’t.
Today England’s public buildings, pubs, restaurants and clubs will all be smoke free under the new smoking ban legislation. I can’t tell you how happy I am to be finally writing this article, after watching it happen in Scotland, Ireland and Wales I thought England’s day would never come but it has and that day is today!
Smokers who believe the new law is ridiculous clearly only care about themselves, consider us non-smokers that shy away from certain locations such as pubs and clubs to stay away from the smoke. Think of our health as well as your own.
So Gordon Brown has taken over from Tony Blair as the PM and he has announced his list of Cabinet Ministers. The new Chancellor of the Exchequer is Alistair Darling, the Secretary of State for Foreign and Commonwealth Affairs is now David Miliband, the Secretary of State for Justice and Lord Chancellor is Jack Straw and the Secretary of State for the Home Department is Jacqui Smith.
Californian governor Arnold Schwarzenegger went to Downing Street today to visit Tony Blair on his last full day as Prime Minister. The two politicians made a deal last year related to lowering carbon emissions and Schwarzenegger thanked Blair for his “great leadership and great friendship”.
Blair will step down as the PM tomorrow lunch time and Gordon Brown will take over his roles.
After an intense seven week competition Harriet Harman has won the position of Labour’s deputy leader replacing John Prescott. The 56 year old won by just less than 1%, pipping favourite Alan Johnson at the post. Johnson received 49.6% of the votes and Harman secured 50.4% after the four other contestants second choices were redistributed.