'Bad Weather' Leads To Property Price Decrease

The recent unseasonable weather condition condition have got caused house terms to fall, according to a new study.

Research carried out by SmartNewHomes uncovers that the norm cost of a new place decreased by 0.3 per cent over the course of study of June to £260,073 in comparing to the £260,832 recorded in May. The lessening was attributed to mediocre weather over the last two calendar months - which have included the wettest June on record - which was reported to have caused many potentiality first-time buyers to detain buying a place until statuses improve. During the month, borrowers were also said to be feeling the impact of the Depository Financial Institution of England's pecuniary policy commission determination to increase the alkali charge per unit by a one-fourth of a per cent on their ability to do secured loan repayments.

Figures from the fiscal services house also indicated that over the last three months, place terms have got increased by 1.7 per cent, compared to the £255,695 noted in March. Meanwhile, June's figs were reported up by some 0.6 per centum points from the same calendar month in 2006.

David Bexon, managing manager of SmartNewHomes, said: "With rates seemingly on the up and the terrible weather condition statuses experienced in June extending well into July, I fearfulness we should set up for a additional autumn in terms over the approaching months." He also claimed that a figure of consumers may happen "any programs for moving volition be well and truly on the dorsum burner", pointing to statistics from the Department for Environment Food and Rural Personal Business estimating that more than than 20,000 places have got been affected by recent flooding.

"In addition, fear of another charge per unit rise is still prevailing among the place owning public, with July's rise only fuelling additional concern. A growth figure of existing householders are feeling increasingly cautious about taking on any further debt at such as an unsure clip and many first-time buyers are holding off, waiting for more than appealing fixed-rate deals before committing to their first mortgage," Mister Bexon added.

Figures from the house indicated that the terms of new places in the Greater Greater London territory have got "fallen dramatically" over the last year, decreasing by some 11 per cent since June to an norm terms of £368,511. However, the working capital was reported to still be the most expensive state in the country to purchase a new home. Consequently, owed to people looking to travel out of London, nearby parts such as as East Anglia and the south-west were reported to be witnessing increasing house terms with the country recording growing of 14.6 and 10.9 per cent respectively over the last year. The survey added that prospective place purchasers "at the less end of the ladder" could happen places under the £125,000 barrier in the North of England as the part goes on to offer low house terms and "remains popular with new place buyers".

Last week, Moneyfacts warned place purchasers against relying on comparing charts offered by Banks and edifice societies when looking to take out a mortgage. The fiscal services house claimed that loaners often conceal the full terms consumers will be apt to do in barred loan refunds each calendar month by not making borrowers aware of the true cost of assorted agreement fees.