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News in digestible form
Welcome to the January edition of our e-newsletter, BSA Newsbite. A monthly online update, Newsbite gives you the latest news, views and stats from the building society sector.
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House prices in 2008
Predicting house prices is always fraught with uncertainty, but given the slowing in house price growth experienced in late 2007, the turbulence in the financial markets, and the prospect of slower economic growth in the year ahead, attempts to forecast prices in 2008 are particularly difficult. This article summarises these predictions and looks at some of the underlying factors.
House prices last year
According to Nationwide Building Society’s index, house prices grew by 4.8% in 2007. At the start of the year, prices grew strongly, buoyed by demand in London and the South East. However, towards the end of the year, price growth had lessened considerably, with Nationwide’s index showing month on month price falls in the last two months of the year.
This was partly due to the cumulative impact of increases in interest rates by the Bank of England, which peaked at 5.75% in 2007 (although rates were cut to 5.50% in December). Another major factor is likely to have been the effect of the turbulence in global financial markets on the price and availability of credit. The Bank of England’s survey of credit conditions showed that lenders reduced the availability of credit in the third quarter of 2007, and some increased the cost of the credit they were offering.
2008 predictions
Activity in the housing market is expected to slow in 2008 because of already stretched affordability, tighter lending criteria, and a predicted slower rate of economic growth. However, house prices are likely to be supported by a shortage of supply and relatively resilient employment.
Read the article
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UK Housing Review published
The 2007/8 UK Housing Review has been published by the BSA and the Chartered Institute of Housing.
The Review contains a wealth of statistics on the UK housing stock, along with articles from a number of commentators, including the BSA’s Business Economist Andrew Gall, on recent developments and trends in the market.
The statistics in the Review demonstrate the increasing importance of the private rented sector as high property prices increasingly mean that people unable to buy have little choice but to rent a home.
According to the Review, the private rented sector has grown by 21% across the UK over the last five years, and as a consequence, is now fulfilling an important role in the housing market.
Read the article
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www.mylostaccount.org.uk launched
mylostaccount.org.uk – the first free, ‘one-stop shop’ website to trace building society, bank and NS&I (National Savings and Investments) accounts has been launched, supported by press and online advertising.
Designed to make searching for lost accounts even quicker and easier, mylostaccount.org.uk brings together the three existing schemes from the Building Societies Association (BSA), the British Bankers’ Association (BBA) and NS&I, all of which have been running since 2001.
mylostaccount.org.uk covers:
- all 59 building societies
- 42 banks that take retail deposits in the UK
- All NS&I products, including the old NS&I ‘Ordinary Account’ (known as the Post Office Savings Bank account up until 1967)
Take a look at the new site here
The full press release launching the site can be viewed here |
BSA welcomes new Associates
Mutual One Group Ltd and CUNA Mutual Group Limited have joined the Association as Associates
Mutual One Group Ltd provide a range of business-to-business services to the mutual sector, notably audit, compliance and insurances. To find out more about them, check out their website ...
www.mutual-one.co.uk
The CUNA Mutual Group Limited is the leading provider of financial services to credit unions and their members worldwide, offering lending, protection, financial, employee and member solutions through strategic partnerships, technological innovations and multiple service channels. To find out more about them, check out their website...
www.cunamutual.com/cmg/home/
And finally ...
If Newsbite has been forwarded to you by a colleague and you would like to get your own copy direct, or if you would like to unsubscribe just e-mail the Media Centre.
For feedback, opinions and information, contact Newsbite’s editor Rachel Le Brocq.
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BSA IN PRINT, MEDIA RELEASE, 21 JANUARY 2008
"Building societies attracted a record £16.1 billion of savings inflows in 2007. This is almost double the £8.3 billion inflow in 2006. The previous record was in 1988, when £13.6 billion was deposited as savers sought the safety of building society saving accounts following the stock market crash of October 1987."
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