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Fourth rise halves annual price fall

Nationwide statistics reveal that the fourth consecutive monthly property price rise has more than halved the annual decline.

The building society’s latest index survey found house prices rose by 1.6 per cent in August, slowing the year-on-year decline from -6.2 per cent to -2.7. The average cost of a house is now £160,224.

Nationwide chief economist Martin Gahbauer, says the three-month rate of change rose from 2.7 per cent in July to 3.3 per cent in August, the highest level since February 2007. He says: “Exceptionally low interest rates offer some explanation why house prices have not repeated the sharp falls of 2008. Mortgage payments for existing homeowners have been reduced substantially. Before the monetary policy committee began cutting rates, the average interest and principal payment per mortgage holder represented about 38 per cent of the average income. This has fallen to 28 per cent.”

John Charcol senior technical manager Ray Boulger says: “House prices will continue to rise until the Bank of England puts interest rates up to a level which stifles affordability, which will not happen for two or three years”.

London & Country mortgage broker David Hollingworth says it is too early to get excited about “a few positive numbers” and that lending conditions must improve to support a further recovery.


Huge personal losses at Towergate

Towergate executive chairman Peter Cullum may have personally lost £17m in the pre-pack administration of Towergate Financial Services, according to reports. Chairman Patrick Snowball is believed to have lost £600,000 of his own money, according to reports in the Independent on Sunday.

Axa Framlington appoints Beveridge as head

Axa Framlington has appointed Mark Beveridge as its global head. Meanwhile, Robert Kyprianou, chief executive officer of Axa Framlington, will retire by the end of the year after 10 years with the company.Beveridge began his new role in August 2009. He is based in London and reports to Stephane Prunet, the global head of equities […]

The third dimension

More and more people are looking for alternative ways to take their pension benefits but how many consider the whole market before making a potentially irrevocable decision?

Protecting long-term savings from short-term policy

By Jamie Clark, Business Development Manager The pensions revolution is almost upon us. As with any revolution, there will be winners and losers. The winners in this case could presumably be the politicians that orchestrated pensions freedom and choice just before the general election. As for the losers, there may be many thousands of people […]


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