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Rate rise good news for first-timers, says says that the recent interest rate rise to 5.25% could be good news for first-time buyers wanting to get on the property ladder.

Paul Holmes, chief executive of, says: “If house price inflation is now arrested as a consequence of three rate rises in quick succession then that is cause for some hope amongst first-time buyers.”

However, he adds it is too early to celebrate because the rate rise is a “defence mechanism versus the mismanagement of the economy in allowing a run on printing money to obscene levels at a time when interest rates were far too low for too long.”

Holmes says: “The effect has been a rise in asset prices due to speculation, which has in turn caused misery to a generation of priced out first-time buyers.

“We’re not suggesting that prices will be halved overnight or that first-time buyers are still not in for a very tough time over the next few years.

“What we are confidently predicting is that our own suggestion, that house price inflation will only reach 2% for the year, is well on track.

“Rates for first-time buyers will remain static, incentives will grow, lenders will recoup their losses from existing borrowers, who, in turn, will seek to change lenders for more competitive rates from more aggressive lenders aided by brokers chasing skinnier returns.

“And so the wheel will continue to turn rather than fall off the wagon that at times has actually looked out of control.”


Call for FSA to focus more on smaller firms

Industry figures have called on the Financial Services Authority to commit more resources to smaller firms and networks after a probe by the regulator raised concerns about a mis-selling scandal.

Abbey for Intermediaries launches desktop alert service

Abbey for Intermediaries is today launching an instant desktop alert service. The free service delivers news and product alerts direct to broker PC desktops. It can be downloaded from the Abbey for Intermediaries website. A spokesman for Abbey says desktop alerts are easy to install and brokers can choose the updates they want. The service […]

Analyst tips Euro commercial property as “money-spinner”

European commercial properties may be a bigger money-spinner than UK alternatives, predicts fund manager and commercial property analyst Seven Dials.As commentators downgrade investment returns from the over-ripe UK market, Seven Dials says the Euro-factors will underpin this fast growing asset class.Seven Dials is particularly warm on the Nordic region and the Netherlands, where it anticipates […]

I found the meaning of property value in Florida

From Dave RogersI think it uncharitable of Mole to suggest that David Bennett is a tight-wad for holidaying with easyJet (Mortgage Strategy January 8). I am sure Bennett is equally frugal when travelling on business at shareholders’ expense. Unless, of course, Mole knows different. On another matter, I’ve just returned from Florida. Despite my lowly […]


Almost nine in 10 employers admit failings with post-DRA compliance

The default retirement age (DRA) was abolished more than three years ago, yet new research from Jelf Employee Benefits suggests that the vast majority of employers still have some way to go to fully understand, comply and communicate the landmark legislation change that prevents older employees being forcibly retired on the grounds of age alone.


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