Land Registry data for August shows a monthly house price change of -0.1%. This gives an annual decrease of -9.4% , which shows a marked improvment form -16.3% in February. The average house price in England and Wales is £155,968.

Property transactions averaged 41,911 sales per month during the months from March to June 2009. In the same period in 2008, the average was 60,997 sales per month.

London and the West Midlands experienced the greatest monthly price rise with a movement of 0.8%. The average property price in the capital is now £310,640. All regions experienced a decrease in their average property values over the last 12 months. The region with the most significant annual price fall was the North West with a movement of -12.7%. Hartlepool experienced the greatest annual price fall with a drop of 23.7%.

The most up-to-date figures available show that during June 2009 the number of completed house sales in England and Wales fell by 17% to 48,903 from 58,636 in June 2008, monthly sales in England and Wales have risen steadily during the first half of the year – up from 26,517 in January.

The rate which banks lend to one another, the London Inter Bank Offered Rate,  fell again this week to ’0.57%’ and with Bank of England interest rates remaining at ’0.5%’, many industry experts are calling on lenders to drop mortgage rates.

Michelle Slade, a spokesman for Moneyfacts, said:
“Lenders are taking, what appears to be an excessive margin for risk from those homeowners that are struggling the most. Falling house prices has dwindled away the equity in their homes and they are being dealt a further blow by having to pay mortgage rates at similar levels to those available two years ago when bank rate was 5.75 per cent.

“Libor and bank rate are at an all time low, but tracker rates, similar to fixed rates have not fallen in line. The margin taken on trackers has moved to an all time high as lenders are concentrate or repairing their balance sheets rather that helping borrowers.”

By comparison, those with a 40% deposit have seen a 1.86% reduction in the average mortgage rate.

Borrowers with a 10% deposit taking out a new two year deal on a £150,000 mortgage will only see their monthly repayment fall £11 from £988 to £977, while those with a 40% deposit see a reduction of £165 per month from £998 to £833.

Michelle Slade, spokesperson at Moneyfacts.co.uk, commented: “A higher margin for risk is expected on a 90% LTV deal, but a 4.25% margin over the cost of funding seems excessive and difficult to justify.

“Sub-two percent rates are being advertised by lenders, but we have no way of knowing how many borrowers actually qualify for these deals. Having been tempted through the door, many are likely to be offered much higher rates.

“First time buyers, once seemingly the lifeblood of the property market are now apparently being ignored as lenders continue to cherry pick lower risk borrowers.

“It appears borrowers searching out a new deal are paying a higher price to subsidise existing customers, many of which are paying record low rates.”

Contact 1 Stop Financial Services were one of our advisers can discuss your options and guide you in the right direction.

Just 5 per cent of those aged 50 plus know what the new Isa limits being introduced on 6 October 2009 will be, according to a Saga study.

Isa limits are being increased to £10,200 for those aged 50 plus from next month but research conducted by Saga showed 54 per cent have no idea what the new limits will be.

A further two fifths (41 per cent) know the limit is increasing but did not know by how much.

But the research did highlight two fifths (39 per cent) are keen to top up their Isas following the change.

Andrew Goodsell, chief executive of Saga Group, said: “Having access to a larger tax free savings and investment allowance will help the over 50s plan their retirement income more efficiently and we do urge people to look out for competitive rates to ensure they invest their money wisely.”

At 1 Stop Financial Services we can help people look at their allownaces and make sure they are making the most of the changes in the ISA limits.

According to Rightmove’s September House Price Index, the average asking prices for property is rising and the market is seeing its lowest stock levels for 18 months, with 10 properties coming off the market for every 8 coming on.
The onset of the Autumn moving season sees new sellers asking an average 0.6% more for their properties. Rightmove has also recorded the lowest average stock levels per branch for 18 months, with 29% more properties coming off the market than coming to the market. The lack of choice in popular areas and high deposit requirements are combining to deter existing home owners from taking advantage of more buoyant market conditions to trade up.

Miles Shipside, commercial director of Rightmove, comments: “There’s an Autumn window for new sellers where a sensible asking price combined with this better market could get you traded up into your next home before Christmas. Some would-be sellers may be concerned by the limited choice of suitable property currently available, and will have to decide whether to take a chance on finding something fresh to the market after they have found a buyer.

This increases the risk and stress of moving, but with choice getting increasingly limited in popular areas they need to have a buyer lined up to improve their chances of securing their next home”.

The brisker market continues to erode stock levels as sold or withdrawn property is removed from the, market. One agent’s summary of trading conditions in August was: “Sales awesome, new listings dreadful”.

New seller numbers are averaging around 23,000 a week, giving a run rate of around 1.2 million a year. Historic figures from Rightmove show that potential buyers have previously enjoyed a choice from around 2 million properties a year. With 151,591 properties measured as coming off the market this month, it is easy to see why property scarcity in popular areas is underpinning price levels.

As expected, the Bank of England decided at today’s monthly meeting of its Monetary Policy Committee (MPC) to maintain its key interest rate at 0.5%. The base rate has now been at that level, a record low, since March this year.

The Bank of England has chosen to hold the base rate at 0.5% for the sixth month in a row. The decision by the monetary policy committee (MPC) came as no surprise to experts who predict that interest rates will stay low until next summer.

Seasonal factors resulted in August being, as usual, a relatively quiet month for mortgages – even by this year’s standards. This, coupled with lower Libor and swap rates, has resulted in some lenders making modest cuts in their mortgage rates which can only be good news for consumers.

The Committee also voted to continue with its programme of asset purchases totalling £175 billion financed by the issuance of central bank reserves.

Critical illness claims between January and June 2009 have been released from Aviva  and Scottish Provident.

Aviva paid out 744 claims – 89% of all claims, totalling almost £60 million, with the average payment just over £80,000.

The number of claims declined for non-disclosure of medical facts at the policy’s outset was consistent with the full year 2008, at 2%.  The number of claims declined as the condition claimed for was not covered by the policy was 9%.  Cancer remains the most common cause of claim at 64%

The company also paid out a further £82 million to the families of loved ones who have died, or been diagnosed with a terminal illness.

Michael Whyte, chief underwriter for Aviva, said: “Critical illness and life policies are the type of policy nobody wishes to need to claim against yet evidence shows that these are vitally important policies that can support families and secure their financial well-being during the worst of times. We are proud that we can make a difference to these families when they need it most, removing financial worries so that they can focus on what is most important to them.”

Scottish Provident paid out on 93% of all Critical Illness claims, totalling over £43 million, with an average payout of £74,207.

For the first half of this year Scottish Provident paid out almost £30 million for cancer claims and over £3.7 million in claims for heart attacks alone. Cancer now accounts for 62% of total claims paid and heart attacks accounting for 10%.

In the first half of 2009 just 1.2% of Scottish Provident critical illness claims were declined due to non-disclosure.

Commenting, Susan Barclay, head of marketing at Scottish Provident said: “We are committed to making the application and claims process on our Critical Illness policy as clear and simple as possible, and we believe today’s report, which sees our claims pay out increase by 6% to 93%, is testament to this commitment.”

Home buyers are in danger of missing the stamp duty holiday deadline which expires at the end of the year

As part of the Government’s economic stimulus package, properties valued between £125,000 and £175,000 have been exempt from stamp duty since September 2008. This will come to a close at the end of the year, meaning home buyers will once again face a 1% tax on all properties valued between £125,000 and £175,000.

Buyers at this property price range would normally face a stamp duty tax bill of anywhere between £1,250 and £1,750.

On average, house purchases take at least three months to complete, so to ensure that you don’t pay stamp duty this means the effective deadline for mortgage applications will be 30^th September.

The stamp duty holiday has been a great support in stimulating the housing market, and has significantly reduced costs of house purchases for houses up to £175,000 in value. However, with the holiday coming to an end, anyone looking to buy a property worth more than £125,000 faces a sizeable tax bill if they fail to complete before 31 December 2009.

With a saving of up to £1,750 at stake for those people who have been considering buying a property, this impending deadline is an added incentive to move fast. First time buyers have been hit hard by the costs of climbing on to the ladder and for these people this is a golden opportunity to make a big saving.

According to the website ‘Unbiased.co.uk’ the latest report for searches for mortgage advice for first-time buyers mortgages increased to 43% in July .

David Elms, chief executive of Unbiased.co.uk, said: “These July figures suggest that after a slight drop off last month, there is regained interest from first time buyers thinking of entering the market.  Many first time buyers who are in the process of scoping the market to see whether they are able to get on the property ladder are also seeking a whole of market mortgage adviser who can give whole of market advice and start to unravel the confusion of those looking to enter the market. 

“These figures also show that although searches on re-mortgage advice have dropped slightly in July, many still remain baffled by the mortgage maze and are continuing to seek whole of market mortgage advice to guide them on their options.  With mortgage deals continuing to change at a fast pace, only whole of market mortgage advisers can give you advice on all the options available as they can access products from across the range of mortgage providers.”

The latest figures from Land Registry show a July increase of 1.7% in all regions in their average property values.

The July increase in England and Wales is the strongest monthly growth since July 2004 and the third month in a row with a positive movement. The annual drop of 11.7 per cent takes the average house price to £155,885.

Wales experienced the greatest monthly rise with a movement of 3.1 per cent and an average property value of £123,122.