The CEBR economists said that after year-on-year growth of 6.4% in 2010, the housing market recovery would stall in 2011, leaving house prices 1.7% lower by the end of the year.
The decline could be good news for first-time buyers if they can come up with the large deposits now required by most lenders.
The think tank believes affordability for first-time buyers will reach an eight-year high this year thanks to low mortgage rates and weakening house price growth. MORE…
Taxpayers ‘subsidising banks by £30bn a year’
British taxpayers are subsidising the banks by more than £30bn a year on top of the vast state bail-out package extended during the financial crisis to prevent their collapse, according to a new report.
The New Economics Foundation (NEF) has calculated the value of the implicit government guarantee, the fees charged on the emergency measures taken to stabilise the economy, and the excess profits taken on loans since competition in the market collapsed.
It says the figure is “at least” £32.5bn using “conservative” estimates.
Publication of the report comes the day before Barclays kicks off the banking reporting season on Tuesday, when the high street lender will inflame public anger by unveiling around £2bn in investment banker bonuses. MORE…