What's making headlines in the rest of the press
Housing associations are sitting on a goldmine. In fact they are doing better than that, according to Nationwide, who said property was a better investment than gold (Guardian, 30 August). Research by the building society showed the price of gold had risen 35.4% since February 2000 while property values shot up by 67.7%. House prices are predicted to go up 13% this year.

Interest rates are set to stay low, with the Bank of England expected to peg them at 3.5% for the rest of the year. The bank's monetary policy committee is expected to keep it at 3.5% - a 48-year low (Observer, 31 August).

Rising demand for rented homes will also provide good cheer for landlords. Demand for rented homes rose at its fastest this year between May and July (Financial Times, 27 August). Housing market uncertainty and would-be first-time buyers priced out of the market fuelled the demand.

Despite high house prices and poor pension fund performance, researchers warned people not to use their home to fund their retirement. Prudential and Bristol Business School found that 40% of people were relying on property values to provide income in retirement. It warned that using your home as your sole pension fund was unwise because property values could fall and maintenance costs will rise as the lifespan of homes built after the Second World War runs out (Western Daily Press, 28 August).

Source

Housing Today