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House prices continue to slide

I promise that I had no idea about this story yesterday, when I wrote my previous post about why the recent increases in house prices were based on very low volume and would not last very long at all. As if by magic, today we see a report from leading property website, Rightmove, which claims that average asking prices dropped by 2.2% between July and August. Obviously, you have to take this stuff with a pinch of salt since it’s only based on the asking prices of properties advertised on the website, but it’s still an interesting indicator – if things were really improving, seller confidence and asking prices would be climbing. The bottom line is that unemployment...

posted on: Aug 17, 2009 | author: Lance

Crosby Report on the UK housing market...

The Guardian has a fairly good summary of the findings of Sir James Crosby’s report into the UK housing market. Although this preliminary report does not make specific recommendations, it does talk about the kind of options which are available to the government if it wants to get the housing market moving again. Most of these revolve around various schemes to encourage banks to start lending more freely to each other and to invest in mortgage backed securities again – although as Crosby points out, any such measures might not be very effective in the short term. It’s encouraging to note that Crosby does seem to advise caution when considering any kind of government intervention in the property...

posted on: Jul 29, 2008 | author: Lance

Interest rates up, mortagage approvals down...

The big news today is, of course, that mortgage lending has dropped so far through the floor that it’ll soon be burrowing its way to the centre of the earth. No surprises there, houses are still far too expensive for most people and even if you were brave enough to clamber onto the property ladder at the moment, the chances of you being able to find a decent mortgage deal are becoming slimmer by the day. But that’s not all – the average two year fixed rate mortgage now stands at over 7%, the highest level in over ten years. It just keeps getting uglier and uglier out there. Six months ago the idea of a massive crash...

posted on: Jun 24, 2008 | author: Lance

Eat more lard, say lard makers

Sooner or later, when considering decisions about money, you will come across the Vested Interest. In fact it’s almost impossible to avoid them. A Vested Interest (VI for short) is a person, company or organisation that wants to get its views across in order to somehow influence the people who are reading, watching or listening to them. ‘VI’ may be used to decribe the entity itself or his/her/its viewpoint. Some VIs are obvious, some less so. I have a VI in writing this article. I’m hoping that if I make it interesting enough, and the information contained within it useful enough, more people will read it and so the traffic to this site will increase and hopefully at...

posted on: May 12, 2008 | author: Alex