Archive for September, 2010

The Bank of England has held interest rates at 0.5% for the 18th month in a row. The hold on rates was widely expected, but there is an expectation that it won’t be long before the rate is increased in order to keep inflation in check. Frustratingly for potential house buyers, the low base rate is combined with a high level of difficulty in arranging mortgages – although it would appear this is easing in recent months.

Homeowners who bought their property at the peak of the property market in 2007, have been warned they will have to wait until 2014 if they want to recover what they paid for their home according to the National Housing Federation. Their findings are based on forecasts Independent economists Oxford Economics forecast house prices would increase 22% over the next five years ? fuelled by a chronic under supply of new housing. According to the research, house prices will rise 7.5% this year, but will then fall again in 2011 by 3%, before recording a modest increase of 0.9% in 2012. This is probably difficult news to hear for people who did buy at the peak in 2007. But do remember, that it also means that your next house is also cheaper – if you are moving up the property ladder. Whilst it may be difficult emotionally to sell at a loss; if you have the cash available, you may be able to save yourself money by moving up the ladder sooner, rather than later.