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IMLA says house price slowdown does not mean housing crash

IMLA says recent slow down in house prices should not be interpreted as an early indication of a housing market crash.

Executive director Peter Williams says: “It was inevitable that the housing market would experience a slowdown in activity and pricing levels following the disruption in the financial markets which led to a temporary reduction in the availability of mortgages, tightening of lending criteria and upward pressure on pricing alongside successive Bank of England interest rate rises. With the well-publicised problems at Northern Rock, consumers have been quite understandably adopting a wait-and-see approach, not because they fear the worst but because they are unsure of what the immediate future holds.”

“This doesn’t affect the fundamentals of the market, which remain solid. Employment remains high, interest rates remain historically low – despite recent volatility – and the economic backdrop remains positive. As far as lenders are concerned, a number have been affected by the tightening of availability of wholesale funding in the money markets and the virtual closure of the securitisation markets on the back of (unfounded) worries that there could be contagion over here from the US sub-prime problems. However, this was a temporary issue and the markets are now slowly coming back to life.”

He adds: “There is now a good supply of funds available to the consumer. Plenty of lenders have plenty of money to offer to creditworthy customers, and in most cases there’s no reason for a shortage of funds to be an impediment to normal home buying or remortgaging activity. The housing market is likely to continue to tick over at both lower and slower levels for a number of months, but there is no reason to expect any major falls in property prices.”


Directors must check policies for sub-limits

It has come to our attention that a number of insurers have introduced a regulatory investigation sub-limit onto their directors’ and officers’ policies. For directors of hedge funds with policies under this restriction, this means that, should the fund be subjected to an investigation by the FSA or SEC, they would be personally liable for […]

LifeQuote software boosts protection case sizes at LV=

LV= says protection business at its advisory arm has increased by 50 per cent since it began using LifeQuote’s Intelligent Protection software last June.The insurer says its case size has increased significantly because Intelligent Protection allows its 53 advisers to recommend a more comprehensive range of products in a shorter space of time.Financial advice services […]

James Hay adds Thames River funds to its wrap

James Hay has added five new Thames River multi-manager funds to its wrap platform.The funds, led by former Credit Suisse managers Robert Burdett and Gary Potter, include Thames River Balanced Managed fund, Thames River Cautious Managed fund, Thames River Distribution fund, Thames River Global Boutiques fund and Thames River Equity Managed fund. James Hay regional […]

Five reasons for optimism in India

By Kunal Desai, Head of Indian Equities at Neptune Investment Management Following the MSCI India Index’s 26.4 per cent return in 2014, stemming from a 7.3 per cent rise in GDP, investors have recently become increasingly concerned about India’s future growth potential. What has happened to India’s reform agenda and are there any signs of […]


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