Home | Email | Get AOL Toolbar | Help | Make AOL My Homepage
 Thursday, 5 November 2009
Money
| | | |
Powered by Google

Money Quiz

Finance Quiz
Test your Knowledge
Get Stock Quote for:

'Worst of UK house price fall over'

posted : FRIDAY, 3RD JULY 2009 16:38:59 BST comments : 0

filed under : PROPERTY NEWS
- Search: House price fall

The worst of the UK house price falls were over
The worst of the UK house price falls were over

A Bank of England policymaker and mortgage market expert told MPs that he believed the worst of the UK house price falls were over.

Professor David Miles - author of a Government-commissioned report on the mortgage market in 2003 and 2004 - offered more hope for the embattled property sector after Nationwide on Wednesday revealed that prices rose in June for the third time in four months.

The new member of the interest rate-setting Monetary Policy Committee said in a Treasury Select Committee hearing on his appointment that the market may have reached the bottom.

"Expectations are crucial in the housing market and they look a bit better now than a few months ago," he said.

"My hunch - and I put it no stronger than that - is that we have seen most of the overall aggregate house price falls."

His Miles Review sent out an early warning that the focus in the mortgage market was not long term enough, cautioning that borrowers were fixated on short-term deals which left them exposed to interest rate payment shocks.

He reiterated to MPs that he also said in 2005 and 2006 that house prices were over-valued by around 20% to 25%.

The former Morgan Stanley economist said the mortgage market had undergone a shift change since the credit crunch, although he said it had not been entirely unwelcome.

"High loan-to-value mortgage products have dried up - ultimately that is not a disaster; people will wait a bit longer to buy and rent a bit longer," he said.

He added: "The flow of first-time buyers will be reduced as they accumulate higher deposits."

    You'll be asked to register or login before posting a comment

    * Display Name (Screen Name or email address is not permitted)

    By submitting your comment, you agree to the AOL Web Services Agreement. If you feel a comment is in violation of AOL community Standards,you may report it using the 'Notify AOL' button.

    Guidelines At A Glance

    Below are some quick guidelines to note when posting comments on AOL.
    • Don't post unlawful, harassing, defamatory, abusive, threatening, harmful, obscene, profane, sexually oriented, homophobic or racially offensive comments.
    • Posts that aren't relevant lower the value of the discussion. Stay on topic.
    • Don't make multiple postings, keep your number of comments per topic to a reasonable level.
    • Please do not publicise anyone's contact details.
    • No advertising, promotion of products or services, or posting of web links (URLs).
    • You should never impersonate anyone, please refer to our Netiquette Guide.
    • Please note that your chosen display name is linked automatically to either your screen name or chosen email address for security purposes.

    Money Guides and Tools from AOL partners

    Clear Class
    Rss Module

    Quantitative easing rise...

     The Bank of England could set off fiscal "fireworks" amid expectations that up to another £50 billion will be pumped into the economy.
    The Bank of England could set off fiscal...
    rssModule
    Rss Module

    Savings accounts 'have rates...

     A tenth of savings accounts have had their interest rates cut during the past six months despite the Bank of England base rate being kept on hold, research has shown.
    A tenth of savings accounts have had their...
    rssModule
    Rss Module

    Call for 'lodger' tax breaks

     A housing charity has called on the Government to give greater tax breaks to people who rent out rooms in their homes.
    A housing charity has called on the Government...
    rssModule
    Rss Module

    Climate change to affect...

     Climate change is set to make insurance more expensive and harder to obtain, experts have warned.
    Climate change is set to make insurance more...
    rssModule
    Rss Module

    Rock 'improving despite losses'

     Nationalised Northern Rock has said that it expected a "significant improvement" in second-half trading as growth in mortgage arrears slowed.
    Nationalised Northern Rock has said that it...
    rssModule
    Rss Module

    More homes sliding below £1m...

     The number of homes worth more than £1 million has fallen by a third during the past two years, research has shown.
    The number of homes worth more than £1 million...
    rssModule
    Rss Module

    Stress 'costs employers...

     Stress, anxiety and depression in the workplace is costing employers billions of pounds, the NHS watchdog has warned.
    Stress, anxiety and depression in the workplace...
    rssModule
    Rss Module

    Aviva lifts withdrawal...

     Insurance giant Aviva has announced it is no longer imposing withdrawal restrictions on investors with money in its property fund.
    Insurance giant Aviva has announced it is no...
    rssModule
    Rss Module

    Consumer confidence remains...

     Consumer confidence remained unchanged during October as Britons fretted about rising unemployment in the coming months, research has shown.
    Consumer confidence remained unchanged during...
    rssModule
    Rss Module

    Taylor Wimpey focuses on price...

     Housebuilder Taylor Wimpey has said it was focused on raising prices after selling all the homes earmarked for retail during 2009.
    Housebuilder Taylor Wimpey has said it was...
    rssModule
    Rss Module

    Quantitative easing rise...

     The Bank of England could set off fiscal "fireworks" amid expectations that up to another £50 billion will be pumped into the economy.
    The Bank of England could set off fiscal...
    rssModule
    Rss Module

    Savings accounts 'have rates...

     A tenth of savings accounts have had their interest rates cut during the past six months despite the Bank of England base rate being kept on hold, research has shown.
    A tenth of savings accounts have had their...
    rssModule