On 28 July, the Financial Times said prices were unchanged in July for the second month in a row. A report from researcher Hometrack said the market showed signs of bouncing back.
However, two days earlier it was a different story, with the FT predicting a steep slowdown in house price growth. Figures from the British Bankers Association showed the number of mortgages approved in the second quarter of the year was 15% down on a year ago. It put market weakness down to nervous first-time buyers (26 July).
Those first-timers are waiting longer for their salaries to grow before clambering onto the housing ladder. Average salaries for first-time buyers rose from £19,740 in 1996 to £32,328 in May (Financial Times, 26 July).
Those who have managed to get a mortgage should check they are not paying too much. The National Mortgage Helpline said more than one third of the people who contacted it could get a cheaper deal. The helpline said it had seen errors in interest payments and charges, and added that people who took out their mortgage some years ago my be paying too much (Express, 24 July).
Life is looking rather perkier for the housebuilders, two of whom saw increased profits and share prices. Crest Nicholson's shares hit a five-year high at 257p – a 46% leap since December (Daily Telegraph, 22 July); George Wimpey's pre-tax profit was set to rise 35% to £116m (Observer, 27 July).
Source
Housing Today
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