UK house price increases take a summer holiday

Written by Richard Green

Property website Rightmove has released its latest house price index announcing a “Summer sale” for house buyers. The report shows that on average, house prices fell by 1% overrepparttar four weeks leading up to 9th July, indicating thatrepparttar 150725 “affordability gap” between house prices and buyers ability to purchase, is at last starting to close. The price fall has been heralded as a great boost for house buyers and an indication thatrepparttar 150726 fears of an expected imminent price crash may be premature.

The statistics show thatrepparttar 150727 asking price demanded by sellers overrepparttar 150728 report period fell by an average of £1,993 implying that; "Sellers are now realising they have to compromise some degree of their gains in order to sell their properties," said Miles Shipside, Commercial Director of Rightmove.

The Rightmove conclusions correspond with other reports from Halifax andrepparttar 150729 Nationwide Building Society. Halifax reported that annual house price inflation had fallen behind average earnings growth forrepparttar 150730 first time since 2001.

The new figures have lead to UK firms becoming more optimistic aboutrepparttar 150731 economy than they were three months ago, with companies such as Lloyds TSB expecting interest rates to be cut next month, leading to a general increase in economic confidence. However indicators show that there is a long way to go to attract many first-time-buyers (FTB).

Figures, based on mortgage value requests, released by financial comparison site Moneynet prior to last months slow down, gaverepparttar 150732 average value of a property purchase for an FTB as £206,250, up from £194,961 two months earlier, a massive jump which could not possibly have been matched by equivalent wage increases. The recent slight price drop follows a long period of huge price increases, and with house price inflation a year ago topping 18%, equivalent to an average of £29,991, it may be some time before many FTBs feel able to enterrepparttar 150733 market. A recent survey by Abbey highlightsrepparttar 150734 trepidation felt by FTBs with just over a third indicating that they wanted to buy a home withinrepparttar 150735 next year, but only 5% of these were actually confident that they would be able to.

National Savings and Investments (NS&I) Senior Savings Strategist Dax Harkins said: "Despite a recent cooling house market, house prices have continued to outstrip both savings rates and incomes overrepparttar 150736 last year which means potential first-time buyers need to start saving sooner and harder to get intorepparttar 150737 market."

Rightmove believesrepparttar 150738 housing market is in for a summer where competing sellers are more likely to be flexible on prices, further improvingrepparttar 150739 situation for buyers. They postulate that sellers and estate agents appear to have been brought to their senses by a painful 12 months and have belatedly taken matters into their own hands by reducing prices to a level at which increasing numbers of buyers are able to proceed. The report sounds a note of caution however, stating that, “Rises in interest rates or sellers over-optimistic expectations on price could choke off any recovery however.”

Moneynet tackles funding university with new student finance guide

Written by Rachel Lane

Consumer research site, moneynet, has published its seventh online brochure inrepparttar series of personal finance product guides. The student finance guide, collated by two graduates at moneynet, was generated in response to requests moneynet received from parents, students and prospective students who had serious financial concerns about how to fund university.

Graduates are reportedly leaving university with debts of over £13,000. Withrepparttar 150693 advent of Child Trust Funds as a long term measure to assist withrepparttar 150694 costs of higher education, there is pressure on financial providers to not only considerrepparttar 150695 type of financial product they offer students, but to additionally review how they communicate complex terms to this young market and to ensure students have a solid understanding ofrepparttar 150696 personal finance market.

In response to widespread public concern and letters from its customers who have families, moneynet has published a comprehensive guide to those factors which affect student finance and university budgets, including realistic expectations and practical suggestions. Key recommendations include:

* Gathering as many savings as possible before university, through birthday and Christmas presents, summer jobs, part-time jobs and any other savings accounts * Shopping around forrepparttar 150697 best deals on household insurance, current accounts and savings accounts * Bulk buying weekly groceries and being strict about spending, borrowing and lending

Richard Brown, Chief Executive of Moneynet said “We all understandrepparttar 150698 importance of budgeting, but for students this can be especially difficult. Our Guide to Student Finance is designed to provide some simple help and advice aimed at making those years in higher education a bit more bearable.”

Moneynet also provides an online banking management tool called AccountStore, which is a fast, simple and secure way to manage money. AccountStore would allow students to manage all their online accounts in one place under a single login, making it easy to keep track of credit card bills, overdraft spending, savings and standing orders.

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