House prices fell again in June!

Although the Halifax had announced an increase in the property prices as of late, they also announced that in June house prices fell by 0.5%. They have said that this year house prices house prices had not fallen as dramatically as last year and that the market has stabilised slightly. There are some many predictions being made by so many of the property professionals i.e. Royal Institution of Chartered Surveyors (RICS), but none of these predictions are accurate.

Budget to stop repossession

Alistair Darling is expected to announce a £1bn package to boost the UK housing market in Wednesday's Budged by building thousands of new council houses. In addition to an extension to the stamp duty holidays, the Home owners Mortgage Support (HMS) scheme will come into force on the eve of the Budget to help stop repossession in the UK.

The Bank of England announced today that  more credit will be made available to households and businesses over the next three months. This surely has to be good news for first time buyers and home owners struggling to remortgage their property? Not neccessary, even though around 15% more banks and building societies said they expected a small increase in lending to households during the second quarter of 2009.

We think there is a strong likelyhood that uk repossessions will increase this year above forecasted rate. The economic outlook is worse than expected and unemployment is rising at a faster rate than forecasted. Last weeks figures showed unemployment above two million for the first time since 1997.