We Know Property

Bonapart Paris reported today that a FREE telephone advice line is running this week to help anyone with questions about family life, buying a property or inheritance in France.

The service is part of the annual Semaine d’Information sur les Droits des Familles - a week-long information campaign organised by the Employment Ministry, which has family affairs in its brief.  Lawyers will be on hand to answer questions about the legal and tax implications of marriage and the pacs, buying property together, life insurance and preparing a will.

See http://www.bonapartparisnews.com/2010/02/free-legal-advice-on-french-issues.html for the full story

Public sector net borrowing was 4.3 billion in January, £9.6 billion higher than in January 2009. The figure brings total net debt to £848.5 billion, equivalent to 59.9% of gross domestic product.

The rise in debt - the first January increase in more than 17 years - took market watchers by surprise as tax receipts normal bump up government cash levels at the beginning of the year.

This time around though, central government receipts were 7.7% lower than a year ago while spending was 9.7% higher.

See www.citywire.co.uk for the full story

The number of people unemployed in the UK has fallen slightly, figures from the Office for National Statistics (ONS) show.

Total unemployment stood at 2.46 million for the three months to December, down 3,000 on the figure for the previous three months. The rate of unemployment was unchanged at 7.8%.

However, the number of people claiming Jobseeker’s Allowance rose by 23,500 to 1.64 million in January, the largest increase since July last year.

The public sector is expected to suffer big cuts later this year as whichever party forms the next government will need to begin the process of reducing the UK’s £178bn budget deficit, this could spark a second round of rising unemployment.

The UK inflation rate rose to 3.5% in January (the fastest annual pace for 14 months) from 2.9% the month before, official figures have shown.

Consumer Prices Index (CPI) inflation was driven up by VAT returning to 17.5% and higher petrol prices. The  Retail Prices Index (RPI) inflation which includes housing costs, rose to 3.7% in January, up from 2.4%.

Bank of England governor Mervyn King has had to write a letter of explanation to the chancellor.

Buy-to-let lending continues to increase after a severe decline in the first half of 2009, new figures show.

While new lending rose for the second consecutive quarter in the last three months of 2009 – with 25,800 new loans in Q4 compared to Q3’s 23,700. These figures are well below thw historical average level and still very low. 

Michael Coogan, director general of the Council of Mortgage Lenders (CML), which produced the figures, said this was ‘below the level of activity which is needed to enhance a vibrant private rental sector in the UK’.

The BBC reported today that ‘The number of people who had their homes repossessed reached a 14-year high during 2009, figures have shown.’

The Council of Mortgage Lenders (CML) said 46,000 homes were repossessed last year, the highest number since 1995. That was an increase of 6,000 on the total for 2008, but was lower than the CML’s most recent forecast of 48,000. In December 2008 the CML had predicted 75,000 homes would be repossessed in 2009.

Lenders took 10,200 properties into possession in the fourth quarter of 2009 - 13% lower than in the third quarter. That was also a drop of 2% on the last three months of 2008.

Last year’s 46,000 repossessions were just 61% of the total recorded in the peak year of 1991, when lenders seized 75,500 homes.

The Times reported that ‘Sterling fell sharply against the dollar and the euro as the Bank of England hinted that it could pump billions more into the economy via quantitative easing. The Bank’s Monetary Policy Committee (MPC) voted to halt quantitative easing this month, but Mervyn King, the Bank Governor, said that it was “too soon” to say that no more asset purchases would be needed.’

‘The Bank also struck a downbeat note on the economy’s outlook in its Quarterly Inflation Report, revising down its growth forecasts for this year. Mr King refused to rule out a double-dip recession, saying that a quarter of negative growth was possible, but he added that it was just as likely that the economy could have four quarters of “rapid” growth.’

See  http://business.timesonline.co.uk/tol/business/economics/article7022632.ece#cid=OTC-RSS&attr=1185799 for the full story

The Bank of England has decided not to extend its quantitative easing programme at the moment but left the door open for future asset buying if needed, city wire reported today.

In a statement, the bank’s monetary policy committee said: ’The committee will continue to monitor the appropriate scale of the asset purchase programme and further purchases would be made should the outlook warrant them.’ But for now, members believe there are signs the economy is pulling out of recession and more stimulus is not needed.

see www.citywire.co.uk for the full report

Halifax stated that ‘House prices rose by 0.6% in January. This was the seventh successive monthly increase and takes the average price to 9.9% above its trough in April 2009. January’s rise, nonetheless, was more modest than in any of the previous six months.

Increased demand has combined with a low supply of properties available for sale to push up prices. There are some signs that more people are putting their homes on the market. A further increase in the supply of property is possible over the coming months, which would help to curb upward pressure on prices. Overall our current view is that house prices will be flat in 2010.’