24.12.10 Mortgage Lending Down Again
More figures show a further drop in mortgage lending for November. New mortgage approvals were at near record lows as the Christmas seasonal trough was deepened by the lenders releuctance to hand out mortgages to any but the safest borrowers. The continuing economic uncertainty and stagnation in the market ensures that the downward pressure on UK house prices isn't likely to let up in the forseeable future.

30.11.10 Mortgage Lending Falls Again
The Bank of England's latest figures show a further drop in mortgage lending for home purchase in October 2010 with new mortgage approvals at just over 47,000 down by almost a fifth from the same month last year. The seasonal lull is upon us again with property sales stalling until the spring. The market continues to be weak with most industry observers predicting that property prices have a way to fall yet before bottoming out.

27.10.10 Housing Benefit capped at £ 400 per week
Continuing the UK's austerity package, the government's plan to cap housing benefit at GBP 400 per week has attracted widespread criticism, with many politicians including London Mayor Boris Johnson seeing it as unfair. It's unlikely that the cap will have much effect outside London though, as the number of homes renting for over GBP 400 to housing benefit claimants is thought to be small. Buy to Let

20.10.10 Big changes to social housing
Chancellor George Osborne announced his long awaited spending review today unveiling an austerity package designed to cut billions off the UK borrowing requirement. Department for Communities and Local Government spending was cut by over seven percent and changes were made to social housing rules with rents for new tenants set to rise to 80% of market rates. The government forecast that 150,000 more affordable homes would be built in the period covered by the review.

6.9.10 House Prices lower
Latest figures from a leading building society reveals another drop in UK house prices. This follows July's 0.5% lowering in property prices. House prices fell by 0.9% in August 2010. This is mainly believed to be due to an increase in the number of properties placed on the market, and this is now exceeding the demand from buyers. Fewer buyers means that they are in a stronger bargaining position and subsequently house prices drop.

After the slower summer property sales, the annual rate of house price inflation fell to 3.9% in August, from 6.6% in July. The average UK property price has now fallen from around £169, 350 to around £166,500. Property experts believe the drop will not be too extreme, and is only part of the recovery process where the supply and demand of houses becomes more balanced, and the property market becomes more stabilised. The impending public sector cuts next month are believed more likely to affect prices outside of London and the South-East.

17.8.10 Inflation down
Inflation is down to 3.1%, in July, but as this is above 3%, the Bank of England governor, Mervyn King, has to again explain the reasons to the chancellor. The current inflation rate is believed partly due to the January VAT increases and high oil prices. Most economists had predicted this drop, but inflation remains much higher than the target 2%. This serves to reinforce the fear that a high cost of living may well affect the slow recovery from the recession in the UK. Inflation seems set to continue above target for some time, as the government plan to raise VAT again next January.

Commuters are now likely to be affected by rail fares increasing next year, as national fare rises are based on the July figures of the Retail Price Index (RPI), which dropped. Rail companies are allowed to increase ticket prices by one percentage point above the RPI.

13.8.10 House Prices down
Latest figures from a survey by Chartered Surveyors has shown a widespread drop in house prices, for the first time since last July. Many estate agents have also reported property prices dropping. Only properties in London and the North West are still rising in price. Scotland and the South West are holding their property prices, but the rest of the UK shows a fall. The lower house prices have generated concern that the UK may be about to experience a double-dip recession.

2.8.10 Owners of holiday homes lose tax break
The government have announced that as part of their attack on the UK's deficit, they are reducing tax exemptions on furnished holiday lets. This is thought likely to save them around 10m a year. At the moment, if you own a furnished holiday let as a second home you are entitled to offset any losses in excess of the rent, such as mortgage and maintenance costs, against your personal income.

From next April 6th, you will only be able to offset any losses against your profits from the same lettings business. The government has also stated that the property's available letting period must be for 210 days a year, (currently 140 days) and must be let for at least 105 days(currently 70 days). There are also to be no Capital Gains Tax (CGT) reliefs on furnished holiday lets from next year. These changes reflect European Union law and are designed to help commercial lettings businesses, rather than continue to subsidise second home owners.

The latest government figures reveal a rise of 0.7% in house prices in May. This is believed to be partly a result of the removal of Home Information Packs. However, in a recent survey estate agents reported a drop in potential buyers. Property experts are warning that a full house price recovery seems unlikely for several years.

13.7.10 Prices drop following removal of HIPs
As predicted, the extra properties apearing on the market since the ending of HIPs have resulted in a flattening of prices. Combined with the ongoing economic uncertainty, reduced inflation and the fears of public sector cuts and job losses in the autumn, supply is exceeding demand.

4.6.10 More houses for sale due to scrapping of HIPs
May's ending of HIPs has caused a surge of properties being put up for sale. Estate agents are reporting a 34% increase in new property registration in England and Wales, since the scrapping of Home Information Packs (HIPs) on the 20th May 2010. Property experts believe more availability of properties may affect price increases, but this will steady the property market in the long term.

1.6.10 House Prices continue to rise
The latest figures from the Land Registry show an annual increase of 8.5% of property prices in England and Wales. The property market seems to be slowly gaining pace with house prices, and mortgage lenders are now offering more than 2,000 mortgage deals. An easing of mortgage availability should help improve the housing market in 2010, particularly for first-time buyers.

20.5.10 HIPs are out
The new Conservative/Lib Dem coalition government has scrapped home information packs (Hips) with immediate effect. House sellers will now only need to pay £70 for an energy performance certificate, to reveal how energy efficient their home is. This has to be within 28 days of putting their home up for sale. This move is expected to encourage more sellers to place their properties on the market, now they no longer have to incur the fee for HIPs - an average cost, outside of London, was around £500.

13.5.10 House Prices rise
Latest government figures show an annual house price increase of 9.7% in March 2010. The average UK house price has risen by 0.7% since February, this makes the average home cost £205,598, in March. Despite this being the 12th consecutive house price rise, experts are still predicting a tough year for the property market. The uncertainty of the election result and the resulting coialition government has affected the buyers and sellers market.

19.4.10 Hot spots for House Prices
The last few months have seen house prices in certain localities in the UK commanding the same high prices, or in some cases even higher, than before the recent property market crash. Areas in London, such as Chelsea, Kensington, Holland Park are no surprise, but also houses in Fulham, Marylebone and Wandsworth are regularly exceeding expectation with estate agents. Homes in Fulham, according to a recent estate agent's figures, are up 45% from last year.

To buy property in Surrey, Cambridge and Winchester buyers are having to pay figures well above the guide line prices. Further south and houses in Brighton, Devon and Cornwall continue to maintain high prices.The high property prices are driven by a shortage of properties on the market in these prime areas, and a high demand.

3.4.10 First-time Buyers' mortgage deals
The property market is being given more help over the next few months, with lenders offering more mortgages for first-time borrowers with small deposits. For first-time buyers saving a large deposit is one of the most difficult steps onto the property ladder. The average first-time buyer's house price is more than four times the average wage. Mortgages for up to 90% of a property's value are beginning to become more available. There are already double the number of 90% loan-to-value deals on offer, compared to summer last year.
The March budget also brought aid to first-time buyers with the stamp duty limit being doubled to include properties costing up to £250,000.

22.3.10 Housing Survey - high property prices deter marriage plans
A recent survey from a housing campaign group has revealed that the high UK house prices have caused two-thirds of those interviewed (18-30-year-olds), to delay getting married and having children. There are fears that a whole generation is being excluded from owning their own home. Four in ten people surveyed had already been refused a mortgage.

The average first-time buyer's property now costs over four times the average wage, and even saving the deposit is impossible for many. Fifty per cent recognised they would need financial help, such as from parents helping them with a guarantor mortgage, before they would ever be able to afford their own home. There are calls from all the political parties to the government to protect the housing budget from any cutbacks in public spending, as with education and health. Otherwise the government's target of building 1m affordable homes by 2020 may be at risk.

Scott, 29 yrs, a married retail manager, is typical of those caught in the rent trap, "There is no way we can get out of renting for probably the next 20 years. We would love to start a family, but feel we just can't afford it. I don't think we will ever be in a position to buy our own home."

15.3.10 House Prices Hold
The uncertainty of a forthcoming election, with the possibility of budget cuts and tax rises are causing many prospective house purchasers to put off buying or selling their homes. The end of the Stamp Duty holiday and winter weather has already contributed
to low February house price figures. Analysts are waiting to see if this property dip is likely to continue through 2010, or whether the property market will recover, all be it slowly.

4.3.10 Property Prices Drop
House prices fell by 1.5 per cent in February. This is the first drop in property prices since June 2009. The winter freeze in January, and the end of the stamp duty holiday (on properties priced between £125,000 and £175,000) is thought to have affected house prices. The average UK house price is now around £166,000.

4.3.10 Annual Property Prices Rise
The annual figure for house prices in February 2010 is more positive. It shows a rise of 4.5 per cent against the same period last year. The annual house price is measured by taking the average for the same three months last year.

22.2.10 Property renting rises
14 per cent of UK households rent their homes in the private rented sector, compared with 9 per cent in 1999. These figures are rising as many people decide to put off buying a house until their 30's. The average age for a first-time buyer is now 38, which reveals the effect of a shortage of property and affordable mortgages on offer. 25 per cent of men aged 25 - 29 remain living with their parents, while they save in order to afford the deposit on their first mortgage.

16.2.10 Inflation rises to 3.5%
Analysts believe the return of VAT to 17.5 per cent has had the biggest impact on inflation growth. Vat returned to 17.5 per cent in January, after having been reduced to 15 per cent to encourage consumer spending. Higher oil prices and depreciation of sterling have also been cited as contributing factors in the inflation rise. However, the rise is expected to be only temporary and likely to return back to target during the second half of 2010.

12.2.10 House Prices on the up
According to latest figures from a leading building society house prices rose for the seventh month in a row in January 2010. This is thought to be mainly due to a shortage of homes being put the market. The freezing weather during January may well have impacted on house sellers. Property prices are strongest in London, the south-east and the south-west.

12.2.10 Rise in mortgage lending due to stamp duty holiday
Due to the stamp duty holiday (all properties purchased under £175,000 were exempt from stamp duty until January 1st 2010), first-time buyer mortgages consequently rose in December 2009. There was a 26 per cent increase in mortgage lending from the month before and 90 per cent increase on the same month in 2008.

12.2.10 Home repossessions rise
The number of people losing their homes hit a 14-year high in 2009. High unemployment, rising debt levels and tight credit conditions have all contributed to the higher figures. This is a 15 per cent increase on the year before. Analysts are predicting that the expected higher interest rates will put many more householders under pressure. The Council of Mortgage Lenders' figures reveal 46,000 homes have been repossessed.

25.1.10 UK Out of recession
F igures released today shows that the UK has at last emerged from the worst recession since the 30's but only just. Growth in the last quarter of 2009 was 0.1% as opposed to the 0.4% that many analysts had expected. The UK continues to limp along as it's main industrial rivals recover more quickly and this continuing financial uncertainty together with the prospect of a general election in May means that prices are unlikely to increase by much anytime soon.

7.1.10 Interest Rate held
The Bank of England's Monetary Committee have decided to freeze the UK's interest rate at 0.5%. The UK is beginning to recover slowly from the credit crunch in 2009. It was the UK's worst peacetime recession since the '30s. The general high level of household debt is preventing a return to a strong UK economy.
Analysts are predicting that the Bank will begin raising interest rates in February, as the economy begins to gain momentum.

House Prices Up by 1.1%
The latest report from a leading building society shows a sixth consecutive monthly increase in house prices. Property prices in 2009 rose by 1.1%. This has been helped by the low interest rates.
The average house price has risen by more than £14,000, than during April 2009, when sales reached an all time low.

January 2010 - More improvement for 2010 - According to Bank of England figures, new mortgage lending in November 2009 was up again over the previous months with 60,518 new mortgages granted. Remortgages were also up on October with just under 25,000 approvals.

The average price of a house in England and Wales in November was £161,554 according to figures from the land registry which monitors residential property sales in the UK. This was up just under one percent over October and only 0.3 percent lower than a year ago.

Stamp duty threshold reverted to £125,000 from 1st January 2010

In an effort to boost the stalled housing market, chancellor Alisdair Darling announced that the stamp duty threshold would be raised to £175,000 for a period of one year from 3rd September 2008.

As stated in the pre-budget statement on December 9th 2009, the threshold reverted to £125,000 as from 1st January 2010.

Previous changes

In his budget of March 2006 Gordon Brown again raised the exemption level for Stamp Duty, after having doubled the starting threshold for residential stamp duty from £60,000 to £120,000 during 2005.
The stamp duty threshold has not been raised since 1993. House prices are 140% higher than when the Labour Party gained power in 1997. This will almost double the number that will now escape the tax to 650,000 a year - half of them first-time buyers.
Such an increase in the threshold should encourage house sales at the cheaper end of the housing market. For many buyers stamp duty was the biggest single cost they had to meet. The main beneficiaries are likely to be buyers in the north or north-west, as there are not many properties in London or the south-east of England for under £125,000