View more on these topics

Shortages see property prices rocketing by 20%

Housing prices have soared by over 20 per cent in the year up to July, fuelled by property shortgages, says Halifax.

The average UK house price leapt by 1.9 per cent last month to £111,823 from £109,738 in June and was 20.8 per cent up on the £92,569 reached in July last year, a significant rise from June&#39s 19.3 per cent.

Halifax&#39s latest housing price index shows says although housing transactions eased in June to 132,000 from 139,000 in May, the total remains around 3 per cent higher year on year. Throughout 2002, it says transactions have risen gradually mainly due to the absence of new properties on the market.

Shortages of property for sale are a major factor in driving up prices, especially in the South and London. The stock of unsold property with estate agents is at its lowest level for 20 years.

Mortgage approvals fell back from a record £19.7bn in May to £17.7bn in June but Halifax says the fall may have been caused by fewer trading days from the added bank holiday for the jubilee celebrations.

Head of group economics Gary Styles says: “Indicators of housing market activity while confirming a buoyant marketplace also show some signs of early slowing.

“We expect house price growth to slow in the coming months as more sluggish income growth, higher interest rates and lower buy-to-let volumes reduce overall demand levels in the market.”

Recommended

Admin costs rising on outdated systems

The cost of administering life and pension policies by providers rose last year, dealing a blow to companies trying to operate within the 1 per cent price cap.The average annual cost of administering a policy rose by 10 per cent to £28.27 in 2001 from £25.60 in 2000, according to research from software company Marlborough […]

Mini ha ha

The leading internet site for personal finance journalists headlinemoney.co.uk recently ran a competition, sponsored by Scottish Widows, offering users of the site the chance to win a Mini.The draw was won by former Money Marketing reporter Nic Cicutti who now works for the Financial Times, news sure to be welcomed by IFAs everywhere.Cicutti is pictured […]

Keydata bond knocks three times

Keydata Investment Services has established a guaranteed equity bond that offers three options.Investors in the extra income plan can choose annual income of 7.5 per cent, quarterly income of 1.825 per cent or 41 per cent growth at the end of the five-year term.The bond is linked to the FTSE 100 index and investors will […]

Talkback

“Yes. They should be paid out of shareholders&#39 bonuses.”Robert Mead,RM Financial Services“Yes. They should only be allowed to be paid out of shareholder funds.”Robin Hunter, Hunter & Co“Yes. They should not be paid out of the with-profits funds. They should pay out a smaller dividend to their shareholders.”John Matthews, Matthews Cooper Associates“Yes. Business shouldbe made […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment