Total number of mortgage products available:
With a 40% deposit June 2014 3827*
With a 20% deposit June 2014 2190*
With a 5% deposit June 2014 269*
Average mortgage balance April 2014 in the Uk £114,520**
Households with a mortgage balance April: 11.2m**
Household debt including mortgages April 2014: £54,546**
Amount of daily interest paid on personal debt April 2014: £161 million**
Number of people made redundant between Nov 2013 – Jan 2014 :1300**
A property is repossessed every……… 18 minutes 11 seconds**
County Court Judgements… 1537 issued daily in 4th quarter 2013**
UK banks wrote off daily £10.6m in Q4 of 2013**
807,000 people have been unemployed for over 12 months. Dec 2013 – Feb 2014**
UK economy grew by 0.8% Q4 2014**
Avg mortgage interest rate April 2014 3.24%**
Bank Rates 0.5%. Since 5 March 2009**
Consumer Price Index 1.6% March 2014 **
Average House price in the UK April 2014: £172069***
Average House price in London April 2014: £435034***
Average House price in South East England April 2014 £225650***
House Price Index (Jan 1995 = 100) April 2014 276.6
Annual increase 6.7%
Sources: * Trigold Prospector ** Creditaction ***Land Registry
Average house prices nationally have increased by 6.7%. Does the government make adjustments to the help to buy scheme to stem the flow of a housing bubble or continue to fuel the trend so that the economy can continue to grow?
The European Commission has recently made the following comments and recommendations to the UK Government
The commission urged ministers to “deploy appropriate measures to respond to the rapid increases in property prices in areas that account for a substantial share of economic growth in the United Kingdom, particularly London”.
In particular focus is the Help to Buy incentive launched in 2013.
Some housing experts have expressed concerns the scheme has contributed to double-digit prices rises seen in London and other property hotspots over the past year, pushing properties further out of the reach of first-time buyers.
But figures released last week showed that 94% of the 7,313 home purchases funded through Help To Buy so far were outside London while more than 80% of those assisted were first-time buyers.
The commission said: “Action is needed to further boost the supply of houses – by creating appropriate incentives to raise supply at the local level.
“The authorities should continue to monitor house prices and mortgage indebtedness and stand ready to deploy appropriate measures, including adjusting the Help to Buy 2 (loan guarantee) scheme, if deemed necessary.”
The Commission also said reforms to the taxation of land and property should be considered “to alleviate distortions in the housing market”.
“At the moment, increasing property values are not translated into higher property taxes as the property value roll has not been updated since 1991,” it said.
“Taxes on higher value property are lower than on lower value property in relative terms due to the regressivity of the current rates and bands within the council tax system.”
It may appear we are heading in the right direction however it would not take much to derail this recovery. All of this before next years election.
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