Saving Money on Council Tax

When the Government introduced the Council tax in 1991, they rushed to get houses valued. They outsourced the job to estate agents and other people. Usually, they would make valuations just be having a quick look at the outside of the house and making a best guess about what value it was in.Since 1991, there [...]

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[Source: Finance Blog]

When Will House Prices Recover?

House prices have fallen 15%, and the reasons for falling house prices remain pretty strong. In fact, falling house prices have created their own momentum discouraging people to buy, causing prices to fall even more. It is negative downward spiral. Falling house prices discourage people from buying. - Because few want to buy, the drop [...]

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[Source: Finance Blog]

Video - Housing Market

I wanted to do something different today, and offer a video post. This is so that readers can get to know the anonymous person behind the blog.In the video, I offer a personal perspective on aspects of the housing market. Sharing why I (like many in UK) really want to buy a house Why the [...]

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[Source: Finance Blog]

Effect of Credit Crunch on Housing Market

Ever since US subprime mortgage companies had to write off bad mortgage debts, there has been a shortage of liquidity in the banking system causing mortgages to be more expensive and difficult to get.A few US mortgage companies lost substantially because many of their mortgage advances were inappropriate. People couldn’t afford to pay them back [...]

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[Source: Finance Blog]

Banking System Collapse - Could it Happen?

After rescuing Bear Sterns, Freddie Mac and Fannie Mae, the American government decided that it had to draw the line somewhere and not use public funds to rescue Lehman brothers. The effect is that the big investment bank, Lehman Brothers has gone bankrupt leading to almost 20,000 job losses. However, although this is a high [...]

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[Source: Finance Blog]

HBOS / Halifax Facing Takeover

HBOS, the owner of Halifax, admitted that they were in talks with Lloyds TSB to try and work out a merger deal. The two banks are working very fast to arrange a deal to safeguard the company. The Competition Commission is likely to grant special permission for the merger (despite increase in monopoly power) given [...]

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[Source: Finance Blog]

Gazundering Hits UK House Sales.

Those selling their house are increasingly faced with the legal, but painful, practise of gazundering.Gazundering is the term used to describe the practise of lowering your offer a few days before exchanging contracts. Because house prices are falling, sellers have the option of refusing the new offer or risking going back on the market to [...]

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[Source: Finance Blog]

Unemployment and the Housing Market

There is a strong correlation between unemployment and the Housing Market.When unemployment is rising, demand for buying a house will fall. If people are made unemployed they will be unable to afford mortgage payments. But, also, if people fear being made unemployed, they will avoid taking on the risk of a mortgage. Unemployment is currently [...]

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[Source: Finance Blog]

House Price Forecast 2009

With house prices falling at their fastest rate for 25 years, there looks to be little room for optimism in 2009.Already house prices have fallen by more than 10% from their peak in July 2007.These are the main factors dragging house prices down at the moment.Shortage of credit and mortgages. The number of transactions has [...]

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[Source: Finance Blog]

How Housing Affects the Economy

With house prices falling so rapidly and the economy plunging into recession, it is not a surprise many make the link between house prices and consumer spending.I was surprised to come accross a report by a former member of the MPC, claiming there was practically no link between house prices and consumer spending / economic [...]

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[Source: Finance Blog]

No Sign of Ease in Housing Difficulties

With mortgage loans falling for the 12th consecutive month, the Bank of England admitted the likelyhood of further falls in house prices. Mortgage approvals were 33,000 in July down by nearly a third on last year. According to the Nationwide, house prices have fallen 10% in the past 12 months.Mortgage approvals are a good guide [...]

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[Source: Finance Blog]

On Holiday

I am currently on holiday in New York, US. I will return to a regular posting schedule on September 1st.Just as a side note, evidence of the US housing slump is quite evident here in Queens, New York. The number of vacated, foreclosed houses is increasing. Locals expect the problem to get worse before it [...]

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[Source: Finance Blog]

Prospect of Lower Interest Rates as Unemployment Soars

After falling for 15 years, unemployment has increased by 70,000 during 2008. A report published today shows the amount of permanent jobs available has fallen to its lowest level since 2001. Many also predict a rapid rise in unemployment towards 2 million - a figure last seen during the 1991 recession.This year, David Blanchflower has [...]

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[Source: Finance Blog]

Shared Equity for New House Sales

Barratts, one of the UK’s largets house builders, typifies the problems facing those exposed to the UK Housing Market. In the past 12 months, they have seen the price of new homes drop 6% to 183,000. However, more damaging than the fall in prices is the slowing down of sales, leaving Barratts with lower profits [...]

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[Source: Finance Blog]

Housing Transactions Slump

Those in the construction industry or estate agents were faced with the grim evidence of the overwhelming slump in market activity.The number of housing transactions is expected to fall to 400,000. This is 60% less than the 1990s slump when housing transactions fell to 1 million.The credit crisis and poor mortgage availability is to blame [...]

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[Source: Finance Blog]

Stamp Duty Holiday for Depressed Housing Market

Properties costing less than 175,000 (Nationwide average house price index has slipped quite a bit below 175,000 to 164,000) will face 0% property tax for the next 12 months in an attempt to kickstart the housing market.With house prices falling at the fastest rate for 25 years, even this significant benefit may not be enough [...]

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[Source: Finance Blog]