View more on these topics

House prices rise by 2.1%

House prices rose by 2.1 per cent in April, taking the average price of a home to £145,918, according to the Nationwide monthly house price index.

The annual increase now stands at 18.9 per cent and prices are rising at more than £100 a day.

However, group economist Alex Bannister warned that the pace of growth would slow over the medium term and forecasted a 15 per cent rise over the year.

Bannister says: “The number of market house purchase approvals remained high at 117,000 in February, suggesting activity in the housing market will remain strong over the summer. However, as was the case throughout 2003, when just 359,000 first-time buyers managed to get on to the property ladder, the number of new entrants remained low. Just 28,000 bought in February and we expect only 350,000 to enter the market in 2004 as a whole.”

Bannister says instead it was existing homeowners, many with large amounts of equity, who continued to sustain the market by trading between themselves. He says price growth at the lower end of the market would be difficult to sustain without a resurgence in first-time buyers.

Bannister also predicted that the market would cool in the second half of the year, with a total increase of 15 per cent in 2004. The rise reflected buyers taking on higher levels of debt in response to lower interest rate and he urged borrowers to take a “prudent approach” to the amount of debt they take on.


Advisers must account for CI rebroking to get PI renewed

Professional indemnity insurers are turning their attention to critical-illness insurance rebroking, telling IFAs they will have to account for any of this business before they see their coverage renewed. Speaking at the Money Marketing Fair Deal for IFAs round table, Direct Life & Pensions sales and marketing director Richard Verdin said his firm was told […]

Independent view

I recently completed the London Marathon, which was quite a painful experience. As I was trotting around, trying desperately to think of anything other than the ruptured hamstring I acquired at 19 miles, it occurred to me that setting up and maintaining an IFA practice in today&#39s financial services industry is not too dissimilar to […]

Octopus carried on VCT wave

OCTOPUS ASSET MANAGEMENT ECLIPSE Type: Venture capital trust Aim: Growth and income by investing in unquoted and Aim-listed companies Minimum investment: Lump sum £3,000 Closing date: September 30, 2004 Charges: Initial 5%, annual 2.25% Commission: Initial 2.25%, renewal 0.375% Tel: 0800 619 7977 The Eclipse venture capital trust (VCT) from Octopus Asset Management invests in […]

FSA may re-open endowments claims

Reynolds Porter Chamberlain has warned the FSA could attempt to re-open mortgage endowment misselling claims which are currently time barred on the back of the Treasury Select Committee&#39s report into the matter. The law firm predicts an increase in the volume of misselling claims would be “almost inevitable” as a result.


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