Notes reveal ministers housing market fears
House prices are set to fall by "at best" between five per cent and ten per cent this year, according to forecasts in confidential government documents. The cabinet's expectation was revealed after Caroline Flint, the housing minister, inadvertently left her briefing notes on display after a meeting at Downing Street. Her notes, which were headed 'Caroline Flint - speaking notes, State of Housing Market', said: "Given present trends they will clearly show sizeable falls in prices later this year - at best down five to ten per cent year-on-year."The market is being affected by the global credit crunch which is making it difficult for many who would like to buy to do so. We can't know how bad it will get."Earlier on Tuesday a report published by Communities and Local Government showed that house prices fell by 0.1 per cent during the first quarter of this year.
Share this..
Related stories
Private renting more expensive than ever before
19/09/2014 Rent has risen to an all time high of £761 a month, higher than a previous record set in October 2013, according to a survey from LSL property services. Private sector rents are higher on average than they ever have been. Rents rose 2.4% in the year to August across England and Wales. The new rent data is revealed in a survey by LSL Property Services, which owns the Your Move and...
Read MoreWill we ever get to the bottom of the reasons for the current recession?
As the all-powerful Treasury select committee prepares itself for a serious grilling of some of the U.K.'s leading banking figures there is scepticism in many parts of the country as to whether we will ever get to the bottom of how the current economic climate was allowed to develop. While the Treasury select committee has the power to ask difficult questions and call expert witnesses, there are c...
Read MoreAre you dipping into your savings?
A number of recent surveys have suggested that more and more people in the UK are now being forced to dip into their savings to cover their traditional monthly living expenses. This is a worrying sign for the UK economy because ultimately any reduction in disposable income, i.e. income left after living expenses have been deducted, means there is less to invest in the UK economy which will impact...
Read MoreInterest rate futures bite back at traders
As more and more traders joined the party of investors expecting an immediate reduction of UK and US interest rates to try and stabilise the financial markets, they all got a fair nasty shock today. The Bank of England and the Federal Bank in the US stood firm and decided there was no need to reduce interest rates instead preferring to inject yet more liquidity into the money markets. US, UK and...
Read MorePremier Foods calls the end of the final salary pension scheme
Robert Schofield, the chief executive of Premier Foods, has today called the end of the final salary pension scheme in the UK having effectively been forced to ditch the company scheme for its 17,000 strong workforce because of the company's high level of debt. Premier Foods, which owns brands such as Hovis, Mr. Kipling and other well-known food names, was the last FTSE 350 company to open a final...
Read More