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| House prices fall by record 3.6% Halifax reveals biggest monthly drop in 27 years as number of houses for sale increases and demand dampensHouse prices fell 3.6% in September – the biggest drop for a single month since the Halifax started collecting data in 1983.But although the bank described the sharp fall as an "intake of breath" moment, it is urging homeowners not to panic about an impending house price crash, saying that the quarterly figures are a much better measure of the underlying trend. Although quarterly figures are also dropping, the decline is less severe at -0.9% for the three months to the end of September, down from -0.4% at the end of August.Martin Ellis, housing economist for the Halifax, said: "Looking at quarterly figures … this rate of decline is significantly slower than the quarterly changes of between -5% and -6% that were seen in the second half of 2008. It is therefore far too early to conclude that September's monthly 3.6% fall is the beginning of a sustained period of declining house prices."He said the sudden monthly fall had been partly caused by an increase in the number of properties available for sale in recent months. At the same time renewed uncertainty about the economy and jobs has caused consumer confidence to falter recently, dampening the demand for home purchase.He warned that the low levels of house sales across the market meant there could be further volatility in house price movements, both up and down, underlining the difficulty of getting a clear reading on the current state of the housing market."Prospects for the housing market remain uncertain. Earnings growth is expected to be very modest over the next year, tax rises are on the way and more people are putting their homes on the market. These will all be constraints on the market, dampening house prices," Ellis said. "On the positive side, we expect interest rates to remain very low for some time, which will underpin the improved affordability position for homeowners."Bank of England figures show that demand for mortgages has fallen four months in a row, and Ellis said first time buyers in particular are still struggling to obtain mortgages, and are now being deterred by the uncertainty over jobs and the economy.But he does not believe these figures herald a continual decline in house prices, much less a crash: "It's too early to take such a view. We've seen a downwards movement but what is key is what happens to the economy over the next six to 12 months. Our view is that the economy is going to continue to improve."Howard Archer, the chief UK economist at IHS Global Insight who normally takes a bearish stance on prospects for the housing market, said that while house prices were now clearly in reverse, the September price drop should not be taken out of context."The Halifax data is at face value an absolute shocker," he said. "While a drop in house prices always seemed probable in September after Halifax had reported price rises in August and July that conflicted with other surveys, a plunge of 3.6% month-on-month was off everybody's radar."He added: "The Halifax data will undoubtedly raise fears of a housing market crash. However, it is important to put the data into perspective. The data highlights how volatile housing market data can be on a month-to-month basis and from survey to survey, so it is best not to attach too much importance to one piece of data. It is clear that the 3.6% plunge in house prices reported by the Halifax in September is partly a correction to the surprising rises reported in August and July which conflicted with other data and surveys."He said the quarterly drop of 0.9% was very similar to the 1% drop reported by the Nationwide, but the monthly figure was different: the Nationwide reported that house prices edged up by just 0.1% in September after dropping 0.8% in August and 0.5% in July."Lower house prices are a good thing for the UK and probably inevitable in the short run," William Griffith for the campaign group PricedOut said. "First time buyers are at record lows and high housing costs are forcing many of them to live in insecure accommodation and delay having families. The government should keep calm; an adjustment downwards is needed, and for many young people will be positively welcomed."The Halifax data show annual house price inflation slowed to 2.6% in the three months to September from 4.6% in the three months to August and a peak of 6.9% in the three months to May. The Nationwide data show that the year-on-year rise in house prices slowed to 3.1% in September from 3.9% in August and a peak of 10.5% in April.Yesterday the International Monetary Fund warned there may be a double dip in the UK property market when it said house prices were overvalued and vulnerable to a fall.House pricesPropertyRecessionFinancial crisisJill Insleyguardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds guardian.co.uk |
7/7 bombers had 'secret' phones The 7/7 bombers evaded detection by buying unregistered pay-as-you-go mobile phones which they used for a few weeks before dumping them, inquests are told. bbc.co.uk |
Spending review 2010: Alan Johnson says coalition cuts 'ideological' Shadow chancellor describes Tories' four-year spending plan as 'reckless gamble with people's lives'Alan Johnson today described the government's cuts as "ideological" and dismissed an attempt by the coalition to suggest its measures were less severe than Labour's might have been.Two weeks into his new role, the shadow chancellor put in a performance that went some way towards reassuring Labour backbenchers that he will be an effective opponent to George Osborne. While acknowledging that the deficit "has to be paid down", he described the government's four-year spending plan as a "reckless gamble with people's lives".Some Labour MPs had been worried that Johnson's support for Alistair Darling's deficit reduction plan – halving the deficit over the next four years – might make his position in insufficient contrast to the coalition as it seeks to eliminate the structural deficit in the course of this parliament.Another candidate to be shadow chancellor, Ed Balls, had wanted the deficit to be brought down much more slowly.Johnson said that, in the fullness of time and despite tables in the comprehensive spending review documents which the government said showed the richest taking the greatest burden, the poorest would bear the brunt.He also said – repeating an Ed Miliband argument – that "the middle" would be squeezed further and that women would shoulder the burden of three-quarters of the cuts. "Today is the day that abstract figures and spreadsheets turn into people's futures, people's jobs, people's pensions, people's services," he said.In cutting welfare, Osborne told Johnson his cuts to departmental budgets had actually come in at lower than Labour had planned: an average of 19% – just under the 20% that would have been the case under Labour.Johnson said the comparison was inaccurate. He said Labour would support two of the Tory benefit changes, so bringing down their spend. Labour had also made changes to its tax and spend policies since going into opposition, he added, introducing revenue-raising policies including a rise in capital gains tax and a freezing of the tax threshold as well as an increase in the proposed bank levy. The party said its acceptance of the recent coalition reforms to welfare meant spending cuts would be £20bn lower under Labour and it would cut departmental spending by half the level that the government has.Johnson said Osborne was simultaneously trying to claim his cuts as equivalent to Labour's and accuse the opposition of not having a credible deficit reduction plan.The Commons was raucous, and Johnson made much of the sight of Tory MPs waving their order papers – apparently with excitement – during Osborne's announcement. He said: "Members opposite are cheering the deepest cuts in public expenditure that have taken place in living memory. For many of them, this is what they came into politics for."Johnson made light of the fact that, during the last comprehensive spending review in 2007, Osborne had supported Labour's spending plans until after the scale of the credit crunch became apparent "well after the collapse of Lehman Brothers in America set off a disastrous chain reaction around the world".The Liberal Democrats, he said, had changed position on whether cuts would be justified this year between the ballot box closing and the door of the ministerial car opening.Osborne mocked the shadow cabinet for saying they would not put forward their own spending plans. He said: "[Johnson] doesn't even have a plan B, and there is complete denial about the fact that the country has the largest budget deficit in the G20. "He [Johnson] kept saying he wanted to reduce the deficit but he didn't agree with anything I said [or] propose a single saving. He is a deficit denier."Spending review 2010Tax and spendingAlan JohnsonLabourGeorge OsborneLiberal-Conservative coalitionAllegra Strattonguardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds guardian.co.uk |
Full Story: Prime Minister's Questions Coverage of prime minister's questions from the House of Commons. news.bbc.co.uk |
Home-made camera captures moments of nature These spectacular images capture the beautiful movements of some of nature's most elusive animals - using equipment almost half a century old. telegraph.co.uk |