Nationwide predicts another interest rate rise
Despite February's interest rate level not having risen, financial experts have predicted that homeowners could still see an increase very soon.Economists at Nationwide building society have forecast that the bank will increase the interest rate in order to bring it in line with house price inflation. Nationwide figures show that the average house price is has increased to £174,706 - a rise of £16,000 from last January. Fionnuala Earley, Nationwide's chief economist, indicated that recent rate hikes, as well as other factors, have affected the market but predicts stability due to lack of housing stock.Ms Earley commented: "While the three recent rate rises now seem to be starting to take their toll on the market, not all indicators are cooling just yet. Buyer interest and mortgage demand are waning, but the supply of properties coming onto the market remains low." She predicted: "This lack of supply will mean that house price inflation will remain firm for a while longer, before gradually easing."Prices rose by a steady 0.7 per cent last month, pushing the overall annual speed of escalation of property prices back up to 10.2 per cent.
Share this..
Related stories
More than 200 people a day are being declared bankrupt
The insolvency service has revealed that in excess of 200 people in the UK are being declared bankrupt each and every day as the recession continues to claim more victims. More and more people across the UK are finally come to terms with what is the most severe recession in recent times and although many believed their property assets would bail them out of any trouble this has not been the case....
Read MoreRoyal Bank of Scotland considering covered bonds
Royal Bank of Scotland, which is 84% owned by the UK taxpayer, has apparently been sounding out the UK debt market about a potential issue of covered bonds. These are effectively debt instruments which are covered by income from a specific asset which is ring fenced in the event that the bank was to collapse, thereby protecting the assets which are "covering" the bonds in question. These instrumen...
Read MoreAldi and Lidl attracting attention from middle-class shoppers
While there is no doubt that the cheaper end of the food retail market has enjoyed something of an Indian summer throughout 2008 who would have thought that so-called middle-class shoppers would be attracted to the likes of Aldi and Lidl?
However, this appears to be the case with the likes of Waitrose apparently missing out on increased business because of the UK consumer's decision...
New car sales collapse to record lows
It has been revealed that new car sales in March 2009 fell by a record 30.5% compared to the same period last year. The situation in the UK car manufacturing sector and car retail sector has been deteriorating for some time amid concerns for the long-term future of some of the best-known car manufacturers in the UK. Despite repeated attempts by the industry to grab the attention of the UK governme...
Read MorePawnbroking back in vogue
Pawnbrokers in the UK are this year reporting a massive increase in profitability with the UK's largest pawnbroker, H&T Group, reporting six monthly profits of £14.5 million. While much of the increased profitability in the sector can be put down to the rising price of gold and the margin which pawnbrokers have been able to secure for themselves when "recycling" this gold, there has also been an...
Read More