View more on these topics predicts growth for 2005 has predicted a 2%-5% growth for the housing market in 2005.

David Bexon, chief executive of, says: “The market in 2004 has pretty much followed our predictions of last year, with house price growth slowing significantly in the last quarter.

“The series of interest rate rises by the Bank of England had a stabilising effect on the market, which is probably healthy in the long term. However, with employment levels still at very healthy levels and affordability still relatively good, I do not foresee any major corrections or price reductions.

“In addition, the supply/demand equation is still in favour of new homebuilders, which also bodes well for the industry. I believe we will witness annual growth nationally of between 2 and 5%. With most areas of the South being at the lower end of this scale, however certain areas of the North will exceed 5% growth.

“At we receive real-time feedback on the activity in the new homes market and our analysis indicates that the likely hotspots in 2005 will be in the North East, Wales and the East Midlands.

“Some rural areas such as Shropshire will also be popular and the North and South West will remain strong outside of the city centres that have already benefited from the strongest growth and investor activity. Overall investor activity will slow markedly as yields become more difficult to achieve, however serious investors will still be present as rental demand is still there.

“The result of these trends will be a more competitive market for house builders where achieving sales targets will be more difficult than in the last two years. I would therefore expect to see greater use of incentives and added value services, which will be good news for homebuyers and in particular the struggling first-time buyers.”


Industry divided over proc fees

The industry is split down the middle on whether proc fees on sub-priA straw poll of nearly 2,000 individuals on Mortgage Strategy’s website saw 51% say they should not be standardised and 49% calling for a business should be standardised.

Ski fans to benefit from Andorra mortgage scheme

UK property buyers can now benefit from a mortgage scheme for Andorra from Hove-based Conti Financial Services. The mortgage has been launched in response to demand from keen investors and ski fans who wish to capitalise on the benefits offered by a country that is one of Europe’s most popular ski destinations.One of the smallest […]

Amber joins Mortgage Promotion’s panel

Mortgage Promotions has added Amber Homeloans to its direct access lending panel.Nick Baxter, director of Mortgage Promotions, says: “Amber Homeloans sensible approach to underwriting and competitive products has always it a popular choice with mortgage intermediaries.“I am pleased that Amber Homeloans decided to give our members direct access. We now have a robust lending panel […]

e.surv predicts soft landing for the housing market

e.surv has backed results from the Council of Mortgage Lenders’ conference that suggest a soft landing for the housing market. At present, while overall activity is down, this is a consequence of a combination of three factors seasonality, previous interest rate rises and most importantly, regulation.Richard Sexton, e.surv national business development manager, says: “The industry […]


Neptune video: UK economy: a sustainable recovery?

After years of a slowly brewing economic recovery, the UK has seen a strong rise in growth in recent months. Mark Martin, manager of the Neptune UK Mid Cap Fund, discusses the strength of this recovery and whether it is sustainable.

In the video, Martin addresses the following:

• Structural features supporting the UK economy
• UK mid-caps and the potential for M&A activity
• Valuations and opportunities in house builders


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