After the recent announcement from Bovis Homes that they were cutting back on the number of homes they planned to sell over the next 12 months, many believed this was a signal that the property market had peaked. However, Barratt Developments have today announced that they see plenty more life in the housing market, and are seeing no real signs of a downturn. How can this be?
The weakness of the US dollar has opened up a situation for UK holiday makers which has not been seen for some time. As sterling currently stands at a 26 year high of $2.032 to the pound, cheaper holidays in the US seems sure to tempt many UK travellers. This recent fall in the value of the US dollar is a little concerning, with more bad news expected in the short term. So why is the US suffering?
Same old story, another Bank of England Thursday meeting, another rise in interest rates and more misery for home owners. Well, it may not be every meeting of late which has seen interest rates rise, but it is certainly becoming a habit. If the expectations regarding this weeks economic news is anything to go by we may soon be seeing base rates of 6% and above!
But are people really struggling?
It seems almost inevitable that Thursday’s meeting of the Bank of England committee will sanction a further quarter percent rise in the UK base rate. Recent comments by some members of the committee have led many to believe that a move upwards is almost certain, a view further strengthened by recent news confirming that property prices have risen again, and inflation is still fairly strong.
The FSA (Financial Services Authority) have announced that they plan to take action against 5 sub prime mortgages brokers operating in the UK. The sector has been under investigation by the FSA since April this year, after a number of complaints were received about inappropriate products being sold to clients who could not afford them.
In what is a worrying sign of the problems associated with the Home Information Packs (HIPs), which the government are trying to force upon the property market, it has been revealed that there is a legal loophole which may allow homes to be sold without a pack in place. More problems for the government as this debacle is quickly turning into a comedy of errors!
