Lunchtime news Friday 4 January 2024

The rate of annual house price growth slowed in all UK regions in the final quarter of 2007, with the biggest slowdown occuring in Northern Ireland, whilst London has the fastest rate of growth in England for the seventh consecutive year. The figures also showed that the north-south house price divide in England has increased. The typical house in the south of England was almost £90,000 higher than in the north. And it looks set to widen further as prices in the south grew by 9 per cent compared with an annual growth rate of 3.4 per cent in the north.

The number of new mortgages being approved for home buying fell in November according to figures from the Bank of England (BoE). Just 83,000 new mortgages were approved that month, compared to 89,000 in October. The Bank also warned yesterday that borrowers will face tougher than expected credit woes this year, as banks and building societies tighten lending rules. First time buyers are likely to find it harder to get on the property ladder because larger deposits will be required; many others risk falling into arrears, especially the one million plus people whose fixed rate mortgages are coming to an end this year, and consumers will have difficulty gaining access to credit cards and loans. The Bank’s monetary policy committee is due to meet again on 10 January to review interest rates.

Many consumers are angry that they are facing a likely double digit rise in their gas and electricity bills after Npower announced it would increase its prices. The country’s second largest energy supplier has 6.8 million customers who are expected to face increases of about 16 per cent for gas and 14 per cent on electricity. It is expected that the other five leading energy suppliers will follow suit as the industry blames the rising cost of oil. Consumer groups say that prices have risen by 90 per cent for gas and 66 per cent for electricity since 2003.

And finally, it doesn’t take much to make the average Briton feel at home – just a pint of milk, tracksuit bottoms and a soft roll of loo paper. And their dream home? For many it is the classic suburban house, rather than a trendy loft apartment, yacht or Hugh Hefner style playboy mansion . The survey by mobile phone company, Orange, also found that the average person spends 51.3 hours of their waking week at home – almost a third of their time.