Category: Uncategorised (290)

Falling prices for a wide range of goods from electricity to fruit, bread and cereals, pushed consumer prices downward in August from July, although by a smaller amount than most economists expected, providing more evidence of the resilience of UK inflation.

Meanwhile, a broader measure of inflation which includes mortgage interest payments, shows prices falling outright.

The Office for National Statistics said that Consumer Price Inflation rose by 1.6 per cent in the year through to August, below the 1.8 per cent rate in the 12 months through July and below the 2 per cent medium target set by the Bank of England’s Monetary Policy Committee.

The Monetary Policy Committee had cited its expectation that inflation would continue to fall in the months ahead when it agreed to increase its purchases of government gilts, known as Quantitative Easing, by £50bn at its meeting in August.

Indeed, Howard Archer, economist at IHS Global Insight, said: “Despite coming in higher than expected, the August inflation data do not fundamentally alter belief that the Bank of England will keep interest rates down at 0.50 per cent well into 2010. The bank could also still further extend its QE programme if bank lending fails to pick up appreciably. “

An unexpected rebound in French and German growth helped push the eurozone to the brink of economic recovery in the second quarter, delivering a further signal that the worst of the global crisis may be coming to an end in Europe.

Gross domestic product in the 16-nation currency bloc fell 0.1 per cent in April, May and June, the European statistics office said on Thursday, cheering economists who had expected a decline of 0.5 per cent after a drop of 2.5 per cent in the first quarter of the year.


The UK housing market showed further signs of stabilising during June with a 23 per cent jump in the number of mortgages taken out by people buying a home, figures revealed today.

Around 45,000 mortgages were advanced for house purchase during the month, the fifth consecutive monthly increase and the highest level for a year, the Council of Mortgage Lenders said.

There was also a steep rise in the number of first-time buyers getting on to the property ladder, with 17,200 mortgages taken out by people buying their first home, 26 per cent more than during May.

The RICS survey showed a continuing rise in interest from potential buyers, with new inquiries increasing for the ninth month in a row during July.

The Bank of England’s rate-setters have decided to pump another £50bn of new money into the economy in their programme of quantitative easing.

It will take their total spending to £175bn, unexpectedly going over the £150bn set aside by the chancellor.

In a statement, they said that the UK recession “appears to have been deeper than previously thought”.

The rate-setters also decided to keep interest rates unchanged at their historic low of 0.5% for a sixth month.

Also on Thursday, the European Central Bank decided to keep its interest rates unchanged at 1%.

This is an excellent interview with a cunning buy to let investor, his main points being:

– Buy-to-let is a viable option if done correctly
– The ability to obtain finance is crucial
– You have to take a 10 year view on your investment, buy-to-let is not about flipping properties!
– Avoid illusionary discounted deals on new developments

Ta dah!

Hackney Council has designated a new conservation area along Hackney Road.

Following consultation with residents, the council designated the conservation area to protect the area’s special architectural and historic interest.

Hackney Road

Hackney Road – Market Report

In the Prime London market there was an insignificant increase (0.33%) in asking prices, but a significant reduction in stock levels, down 1.43% in June, or -2.53% in the Central London area.

Prime London lettings stock increased, leaving them an astonishing 96% higher than a year ago, resulting in a 15th successive fall in average rent.

Source: Rat & Mouse

An end to the recession is now “in sight”, after the Economic and Social Research Institute (ESRI) said that “a clear picture” was beginning to emerge of the likely extent of the economy’s troubles.

For the first time in more than two years, the institute has not lowered its quarterly forecast for Ireland’s economic prospects for the year ahead.

It now expects the Irish economy to shrink by 8.9 per cent in terms of its gross national product (GNP) this year, which is a slightly more modest contraction than it expected at the time of its previous forecast in April.

ESRI economist Alan Barrett, one of the authors of the report, said the stability of its forecasts, after a succession of regular and often sharp downward revisions, was “in itself a noteworthy factor”.

Read more: Irish Times Business