View more on these topics

Growth in jobs fuels house rise

House prices remained buoyant in August, increasing by 1.3 per cent following a fall of 1.4 per cent in July according to the Halifax house price index.

The annual rate of house inflation stands at 19.1 per cent, pushing the national average price of a home up to £133,908.

Mortgage payments for a typical new borrower are 14.5 per cent of gross income, the lowest proportion seen since the early 1980s.

Halifax chief economist Martin Ellis says the increased number of homes being sold can be accredited to a record level of employment in the second quarter.

The Office for National Statistics reported a rise of 63,000 people in employment over the past three months with unemployment benefit claims falling by 8,800 in July to 939,200.

Ellis says confidence has been boosted since the Iraqi conflict, with more people returning to the market, particularly for buy-to-let mortgages.

Bank of England data show that mortgage loan approvals rose by 15 per cent to a seasonally adjusted monthly average of 110,000 in June and July from 96,000 between February and May.

But the Halifax expects growth to slow in the next few months. Ellis says: “We expect the rate of house price growth to slow gradually over the remainder of 2003 and into 2004 as the rapid increase in house prices in the region outside Southern England over the past year or so make it increasingly difficult for first-time buyers to get a foot on the ladder.”


Suite will hit Isas and trackers

Scottish Equitable believes the Sandler suite could have a negative impact on investment products such as trackers and Isas.Under plans for a lightertouch advice regime, the existing stakeholder model will be subsumed into the suite and products offered alongside restricted to 60 per cent equity exposure.But Scottish Equitable director of business development and communications Ken […]

Borrowers unaware of repayment penalties

Half of those who intend to take out a personal loan in the year ahead (two million people) have no idea that the majority of personal loans carry repayment penalties. Research from ICM Research for Intelligent Finance also reveals that over a third (16 million people) of all adults in the UK do not realise […]

Aberdeen pays off debt after deal

Aberdeen Asset Management will use the remaining cash from its deal with Edinburgh Fund Managers and New Star to pay down debt once it has plugged a £9m hole in EFM&#39s pension scheme.Aberdeen bought EFM for £36m in shares, selling on the retail funds to New Star for £33m. It will be left with £2.4bn […]

Class conscious

In my last couple of articles, I have discussed the importance to investors and advisers of the asset allocation used by different with-profits funds. In particular, I have highlighted the truism that, over any period of time, bonuses paid out of with-profits funds cannot exceed the investment returns the fund receives.Knowing the rates of return […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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