House prices squeezed higher
House prices in the UK increased by 1.4% in November due mainly to a lack of homes on the market and rising demand which has squeezed prices upwards. According to Halifax the average house in the UK now costs £167,664 which is a significant rise from the £154,490 the market fell to in April 2009. While house prices are still 1.6% lower than they were 12 months ago there are signs that perhaps things are starting to turn and interest is returning.
However, there is concern that the increase in prices appears to be predominantly caused by a lack of properties on the market, something which may give the wrong impression to some potential buyers in the UK. One of the main issues, and it has been an issue for some time now, is the lack of liquidity in the mortgage market which is effectively barring many first-time buyers from even entering the market at this relatively low level.
While this will change in due course, it has been dragging on for some time now and if prices continue to rise then more and more potential first-time buyers could be priced out of the market for the foreseeable future. Those who believe the worst is behind us may be correct but those who believe we are on the verge of another property boom should think again!
Share this..
Related stories
Google takes on the property sector
While Google has many fingers in many pies, the announcement that the company is looking towards a possible property portal in the future has caused some concern within the UK property market. Indeed yesterday we saw the shares of Rightmove, the U.K.'s leading estate agent, fall by over 10% on concerns that the Google operation could reduce Rightmove's significant market share in the UK. Even t...
Read MoreSavings protection scheme takes toll at Nationwide Building Society
In a further reflection of the growing unease in the building society sector it was today revealed that the Nationwide Building Society has taken a £241 million exceptional charge for its share of the Financial Services Compensation Scheme. Designed to offer a safety net to retail sales in the UK the system appears to be somewhat out of sync can and accounted for a 69% fall in pre-tax profits to...
Read MoreShould the UK authorities be employing more tax inspectors?
While the thought of a tax inspector walking through your door tomorrow to go over your company accounts will fill many people with dread the truth is that HM Revenue and Customs is chronically short of tax inspectors and experienced staff. As the authorities look to increase tax rates across the board there is a feeling amongst many that employing more tax inspectors would ultimately allow the go...
Read MoreHas Gordon Brown Opened The Flood Gates For Wage Rises?
In a move which will eliminate the threat of possible industrial action by UK nurses in the short term , it has been announced that they have agreed an 8.1% three year wage deal. The nurses will receive a rise of 2.75% in year one with a 2.5% rise in each of the following two years. However, buried away in the small print is the opportunity for the Unions to reopen talks if the price of living c...
Read MoreGoldman Sachs Swoops Like A Vulture
While all around them companies are under serious pressure it seems that major US financial institution Goldman Sachs can do no wrong. The group has just reported profits which far exceeded the downbeat forecasts of analysts and the stock has responded with a near 10% rise over the last week, much of it in anticipation of good results. So how is Goldman Sachs swimming against the tide?