House prices remain steady in August
The Nationwide house price report for August has shown that house prices are unlikely to suffer any short term damage as a result of the recent turmoil in the world's stock markets.
However there is a possibility of long term risk posed by a dependence of the UK economy on financial services.
Nationwide's chief economist said: "The rate of house price growth lifted a little during August, but the annual rate continues to moderate. Prices increased by 0.6 per cent during the month, but the annual rate fell to 9.6 per cent down from 9.9 per cent in July."
More homes go under the hammer
The number of residential homes going under the hammer has risen to its highest in over two years.
The figures, released by Royal Institute of Chartered Surveyors (Rics), show that in the second quarter of 2007 there were 5,120 residential properties that were sold at auction, a rise of the 22 per cent from the previous quarter.
Interest rate hikes have increased the levels of repossessions and these have subsequently appeared in lots at auctions, however this can be avoided with a bad credit remortgage.
RICS economist, Oliver Gilmartin, said: "With the full impact of interest rate rises in 2007 yet to filter through into higher mortgage costs we continue to expect a rise in the number of homes going under the hammer into 2008.
Rates Concern.
Intelligent Finance says the possibility of future interest rate rises is a major source of worry to 41% of adults.
The Bank of England has raised interest rates five times in the last 12 months, and commentators suggest further increases are likely in the coming months. Yet only a quarter (26%) of people surveyed said they held products that are protected from rate changes.
The study goes on to reveal four in 10 of 18-24 year olds get worried about the impact of a rate change and a further 10% get ‘extremely worried’ at the prospect of a rate rise, but only 7% have products to protect themselves from fluctuations.
Repossession rise 'tip of iceberg'
The rise in repossessions reported by the Council of Mortgage Lenders (CML) has been described as the tip of the iceberg.
Over the first half of the year repossessions rose 30 per cent to 14,000 according to the CML, but Mform is warning that with large numbers of mortgage holders coming off fixed rate deals, those facing difficulties meeting repayments may rise.
Thousands of households are now coming off fixed rate deals a day, finding rates now much higher than two or three years ago when deals were taken up however a bad credit remortgage can combat this.. |
