View more on these topics

Survey says boom is over as average house prices fall

Average UK house prices fell by 0.1 per cent in April, providing firm evidence that the house price boom is truly over, according to Hometrack latest national house price survey.

Its says these figures provide the first real evidence that the property boom is over despite the fact that house price inflation has been declining since last May&#39s peak of 2.6 per cent.

The South-east bore the brunt of the declines, with 23 counties reporting price falls and Surrey taking the most fallout, with prices dropping by 0.9 per cent. In Berkshire, they fell -0.8 per cent, East Sussex -0.6 per cent and West Sussex -0.5 per cent.

However, there is a definite North/South divide, with 24 counties reporting healthy price rises. County Durham boasted the biggest rise of 0.6 per cent while South Wales 0.4 per cent, Teesside 0.4 per cent, Mid Wales 0.3 per cent and North Wales 0.3 per cent were not far behind.

House prices are now over 4.5 times average household incomes, the highest level for over 10 years. Given that on average houses are now taking five weeks to sell compared with two weeks in May last year, with an average of 12 viewings per property compared with nine last May, Hometrack says it is very likely that house prices will continue to deteriorate over the coming months.

Housing economist John Wriglesworth says: “With mortgage rates at their lowest levels for 40 years, housing is very affordable. However, lenders&#39 prudence with res-pect to income multiples is holding back house price rises. Unless lenders relax their lending criteria, we can expect very little house price inflation in the near future.”


Watson Wyatt appoints Crowther

Watson Wyatt is appointing Jonathan Crowther as senior investment consultant. Crowther will commence work in May by joining one of the firm&#39s Leeds-based pension fund consulting teams. Crowther is a qualified actuary and previously worked for General Accident in a variety of roles including pension design.Watson Wyatt European head of investment consulting Nick Watts says […]

Big firms facing FSA regulation fee of £25k

Big mortgage and general insurance intermediaries could face a one-off bill of up to £25,000 for applying to be regulated by the FSA while smaller firms face a maximum of £1,200.According to CP180, firms with £1m or less in annual income pay £500 if they apply electronically before April 1 for mortgages or June 1, […]

Standard clashes with ScotEq on EPP transfers

Standard Life has criticised Scottish Equitable for mounting a campaign to get IFAs to transfer executive pension plans to personal pensions.Standard argues that the Government&#39s Green Paper reforms will sweep aside differences between EPPs and PPPs.It argues that only those people who are expecting to die or retire before the Green Paper takes effect will […]

&#39Worthwhile guarantee&#39 from Liverpool Victoria on endowment promise

Liverpool Victoria&#39s endowment promise appears to be a “worthwhile guarantee” because it is not pegged to the growth of the fund&#39s underlying investments, unlike rival life offices, according to Misys.In a research bulletin sent out to Misys&#39 6,000 members, head of research Dale Tranter questions the validity of the endowment promises made by life offices […]


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