View more on these topics

&#39Soft landing&#39 for house prices

The housing market is heading for a soft landing rather than a crash but the slowdown is spreading out from London to the South-East and East Anglia, according to research by website Rightmove.co.uk.

The areas which have previously seen the strongest surges in house prices – London, South-East and East Anglia – now have the smallest increases over the year to February at 18.3 per cent, 19.5 per cent and 21.1 per cent respectively, while the bigger rises over the year are in the West Midlands at 36.2 per cent and Wales at 34.9 per cent.

Annual house price inflation across the UK over a year to February fell to 23.5 per cent from 26.5 per cent for January while the rate of increase for February was 2 per cent compared with 4.5 per cent over the same period last year.

Rightmove says the average asking price for a house is now £158,639, up from £128,490 last February and £155,481 in January.

Rightmove says house prices have been tempered by an increasing amount of properties coming on to the market compared with last year when their were stock shortages.

It claims that although there is a continuing demand, potential purchasers are taking a much more cautious approach and want to see which way the market is heading before committing themselves.

Its analysis is based on asking prices for properties marketed by its member estate agents, covering 30 per cent of the market in England and Wales.

Managing director Ed Williams says: “After the boom market of 2002, we are in a transitional phase as the market returns to a natural equilibrium. Supply of property is good and underlying demand is still there, helped by low interest rates and sustained employment levels, even if people are a little cautious for the time being. Despite what some people have been saying, it really does look as if we are heading for a soft landing.”

Recommended

Leeds & Holbeck guarantees capital on Tessa account linked to FTSE100

Leeds & Holbeck Building Society is launching a new account for Tessas and Toisas, offering 100 per cent capital security and minimum return of 10 per cent tax-free at the end of the six-year term.The secure growth account will be available on a first-come, first-served basis to savers with funds from a maturing or matured […]

Bamford blasts FSA as his PI cost soars

Sofa chairman and Informed Choice director Nick Bamford is blaming the FSA for the PI insurance crisis.He has finally secured PI cover but his premium has soared to £28,875 from £7,950 last year and from just £2,750 in February 2001. The excess has risen to £15,000 per case from £10,000 last year despite no claims […]

Remortgage business rockets to 52%

Remortgages now represent more than half of all new lending, according to figures for January from the Council of Mortgage Lenders.Of the total £18.6bn of advances made last month, £9.6bn or 52 per cent was advanced through remortgages, up from £7.6bn in December or 39 per cent and £5.6bn and 42 per cent in January […]

Prudential WP bonuses cut by up to 20%

Prudential is reducing payouts on with-profits by up to 20 per cent and leaving some shorter-term polices without a terminal bonus.The company says the move is a result of the current state of the stockmarket, which it does not expect to pick up over the coming year.The cuts mean that an investment of £10,000 in […]

Greg Broomer 2

Survey looks at the challenges facing businesses post auto-enrolment

A survey conducted by Johnson Fleming at the Pension & Benefits Show 2014 highlighted the key challenges faced within organisations post auto-enrolment. The results showed that communicating the changes and the value of them to staff, and receiving timely data from the payroll provider proved to still be the most challenging aspects of managing an auto-enrolment scheme.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com