Lunchtime news Thursday 29 November 2023

Nationwide’s house price index is out today and according to their research, prices fell at their fastest monthly rate since 1995. The lender said that prices fell 0.8 per cent during November, bringing the annual rate of house price inflation down to 6.9 per cent. Their research also suggested that the final phase of the introduction of house information packs (Hips) may reduce the availability of housing supply in the short term. At the same time, mortgage approvals are at their lowest level in nearly three years, according to the latest Bank of England figures. Mortgage approvals, seen as an indication of the future health of the market, fell to 88,000 in October down from 100,000 in September, and well below the forecast amount. It is the lowest number since February 2005.

Following yesterday’s revelation that £2 billion of the £5 billion set aside to improve military housing is being spent on rent, a Commons public accounts committee today released a report showing that over half the accommodation for single armed forces personnel and over 40 per cent of family quarters are below standard. It continued that some personnel and their families would continue to live in substandard housing for the next 20 years, as the MOD continue to make cuts to their budget. Twenty per cent of the cuts fell in the housing budget, although it accounts for less than four per cent of their overall costs. The ministry cut maintenance work rather than postponing work such as the resurfacing of tennis courts. They accept that the decision seems ‘questionable in hindsight’.

A private equity firm, Olivant, plans to detail its bid for Northern Rock within days; as the bank’s small shareholders are meeting to oppose the Virgin group from its proposed takeover. The Northern Rock Shareholder Action Group (NRSAG), composed of some of the 180,000 small investors holding 20 to 25 per cent of the bank’s stock, are campaigning against Richard Branson’s proposal saying: ‘We don’t think the Virgin offer is good enough in terms of value’. Olivant’s plan is to allow shareholders to retain 80 per cent of the company compared with 45 per cent Virgin has offered.

The Thames Gateway plans are due to be announced by Yvette Cooper today. Details will be made available of how more than £9 billion will be spent on building 160,000 homes and relevant infrastructure in the Thames Valley, in Britain’s biggest regeneration project. Earlier this month a committee of MPs had criticised the management of the project by the Communities and Local Government department.

And finally, research by website moneyfacts.co.uk has revealed that the average mortgage arrangement fee has doubled in the past two years. In November 2005, the fee was an average of £441, whereas today it stands at £827.