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House prices rise just 0.6% year on year in January

The average house price has risen by only 0.6% year on year in January and has fallen by 0.1% since December, the LSL and Acadametrics House Price Index shows.

The number of transactions is now just 60% of the long-term average – at just 40,600 in January while the average house price now stands at £221,211.

David Brown, commercial director of LSL Property Services, says price falls are fr less than in 2009.

He says: “We should see a bubble of increased activity at the top end of the market in the next couple of months as buyers look to hurry through purchases of properties worth more than £1m before the stamp duty hike in April. On top of this, a growing number of rich investors are withdrawing money from destabilising countries, and investing in bricks and mortar in prime locations in London.

“However, transaction levels across the rest of the market are still being suppressed by the lack of high LTV mortgages available for first-time buyers.

“At a time when wage inflation is being outstripped by inflation, would-be buyer finances are under increasing financial pressure and providing the large deposits required by lenders is unachievable for thousands of potential first-timers.”


Government levies an extra £800m

Chancellor George Osborne has announced he is increasing the levy on banks to £2.5bn, raising an extra £800m. The government initially ann-ounced that a reduced rate of 0.05% would apply in 2011. But the government no longer considers this necessary. Therefore, from March 1 the rate of the levy will be 0.1% for two months […]


Never a better time to ask the experts

About 40,000 home owners will have their properties repossessed in 2011, up from an estimated 36,000 last year, according to the Council of Mortgage Lenders, and many are already feeling the strain. Rising unemployment is a major factor and as we try to pull ourselves out of the recession, there will inevitably be casualties. I […]



One good thing about some of the new tracker rates is that TMW is allowing 20% capital reduction without penalty, a welcome increase on the usual 10%. At least when Paragon released the details of its new buy-to-let loans we could see the fees as well. While the fees on the new products aren’t low […]


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