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SmartNewHomes.com fears for market’s future

SmartNewHomes.com says the Bank of England’s decision to rise the interest rate could prove bad for the market.

David Bexon, managing director of SmartNewHomes.com, says: “The 0.25% rise was a dangerous decision and could prove extremely detrimental to the market. The Bank of England would have been well advised to listen to recent calls from industry and hold rates, at least until the end of 2006.

“The new homes market has slowly started to show signs of growth over recent months, with the average price of a new home up in October, for the first time since May. A rise in interest rates now could seriously damage buyer confidence at a time when recent growth has been predominately restricted to London and the South-East.

“Many home owners, particularly at the lower end of the housing market are still adjusting to August’s rise and another increase will see even more first time buyers priced out of the market, often having to remain trapped in an unsuitable property.”

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Mortgages Direct questions base rate rise

Peter Gladdy, director of Mortgages Direct says the current economic situation is not strong enough to justify a rise in rates. He says: “The housing market is stable and currently showing modest overall growth but the latest rise in interest rates could cause a substantial change in homebuyer attitudes and significantly dampen activity in the […]

Asian property hit by instability

The Global Property Guide says Asia’s residential property markets have performed poorly because despite high rental yields in Indonesia, Thailand and the Philippines, the market’s rise has been limited due to political instability. It warns “the next decade isn’t going to be much fun for investors” in Asia.

A stretch too far could leave clients exposed

The cat was set firmly among the pigeons the other week with a big provider announcing that it was going to start offering mortgages based on 5 x salary.

Freedom is a fast-rising star

Freedom Finance has risen to a ranking of 294 among the fastest-growing European companies featured in the 2006 Europe’s 500 Listing, the annual league table of high growth companies that is published by Europe’s 500.

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David Cameron appoints former adviser to Tony Blair as new pensions minister

Following a cabinet reshuffle in light of last week’s general election, David Cameron has announced that Ros Altmann will be replacing Steve Webb as pensions minister. As the industry works with one of the largest reforms to the sector in almost a century, the former adviser to Tony Blair has been tasked with ensuring that the pensions revolution does not stray off track.

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