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Wed 8th September, 2010
News
Market Watch |
13th April 2006 |
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The housing market is in full swing.
Interest rates were held at 4.5% at the April meeting of the Bank of England’s Monetary Policy Committee (MPC). The decision was made by a seven-to-one split vote. Many members of the MPC remained wary of encouraging further price inflation in the housing market and an increasing volume of equity withdrawal.
Halifax, Britain’s largest lender by volume, reported a 0.9% jump in house prices in March pushing the value of the average home to more than £175,000 for the first time. Together with previous house price rises (1.5% in February) the current annual rate of property inflation is 6.2%. Although the figures for first quarter 2006 were not as strong as final quarter 2005 the annual rate of property inflation is still the highest for nearly a year. The Halifax again warned that rising utility and council tax bills were beginning to curb potential buyers’ enthusiasm.
Nationwide have reported a similar 1.1% price increase in March.
Hometrack reported a 0.5% rise in March. The biggest rises were in London, up 1.1%, and the South West, South East and East Anglia, which rose 0.4%. Hometrack suggests the reasons for higher prices are greater demand then supply. In London there are 10% more buyers and just 1% more homes for sale.
The budget announcement to raise the stamp duty threshold by £5,000 to £125,000 will make little difference to encouraging housing activity.
Most analysts believe that interest rates will remain unchanged until the end of this year and this adds weight to the view that the housing market has recovered and the recovery is sustained. Lets all hope that there are no external shocks to the current housing market, anything from uranium in Iran to a dead swan in Scotland.
For further information, please do not hesitate to contact Mr Bill Dhariwal, Lawcomm Solicitors, DD: (023) 8038 4404 E: bill.dhariwal@lawcomm.co.uk.
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