The Financial Services Authority (FSA) has published details of its ‘stress test’ for banks, which assumes that house prices will halve and unemployment will peak at 12 per cent. The FSA’s stress test applies fictional economic scenarios to see how banks’ balance sheets would cope, and the current stressRead More →

Halifax, the UK’s biggest mortgage lender, has raised its house price inflation forecast for the year from 4 per cent to 6 per cent, despite higher interest rates. The bank made the change after house prices rose faster in the first six months of the year than it hadRead More →

In its response to the Calcutt review of housebuilding, the Council of Mortgage Lenders [downloads PDF] has called for more consultation to avoid mortgagebility problems caused by modern methods of construction and an over-supply of new flats in some areas. Home loan demand may be slowing down, accordingRead More →

A financial thinktank, the Financial Inclusion Centre (FIC), has warned that predictions of a fall in the number of repossessions are unfounded as official figures do not take into account sub-prime lenders details. FIC said it expected an increase in the number of repossessions, particularly in middle and lower-incomeRead More →

Borrowers with interest-only mortgages could be faced with crippling debts and negative equity in the falling property market, according to new research. Figures from insurer LV show about 41 per cent of homeowners with such loans – about 530,000, owing £30 billion – gambled on rising property values andRead More →

Meanwhile, London Councils have called on the government to provide £350 million to help local authorities safeguard the capital’s housing market and provide 4,000 homes for rent. London Councils propose setting up a new housing agency, Homes for London, which would operate separately to normal council housing and whichRead More →

The Salvation Army is to rebrand its hostels for the homeless as LifeHouses. Maff Potts, Salvation Army’s director of homelessness services said: ‘This is a defining moment for the Salvation Army. The word ‘hostel’ was linked with old-style warehousing of people and didn’t convey that there’s more to ourRead More →

Sales of repossessed properties in the first quarter of 2016 are double the figures from a year earlier, according to research by the Asset Management Group (AMG). Its figures show a month on month increase in properties ‘under offer’ since the beginning of the year. Managing director of AMGRead More →

Britain’s borrowing surged to a record £13.3 billion in June, official figures showed yesterday as economists used phrases such as ‘dire’, ‘alarming’ and ‘parlous’ to describe the state of the nation’s public finances. The figure is nearly double that for the same month last year while the actual cashRead More →