Property 'stalemate' continues

12 July 2011 Last updated at 10:22 GMT The market is expected to stay flat this year The UK property market remained in "stalemate" in June, according to the latest survey by the Royal Institution of Chartered Surveyors (Rics).

Prices continued to fall back while sales rose only "marginally".

The continuing downward trend in prices was underlined by the government's own house price index.

The Department for Communities and Local Government (DCLG) said average UK prices dropped by 0.5% in May, and by 1.6% over the past year.

Only in London have prices gone up in the past year, the DCLG said.

"Average prices decreased during the year in England (-1.3%) and also decreased in Wales (-6.1%), Scotland (-2.5%) and Northern Ireland (-13.2%)," the DCLG reported.

It said the average UK house price was now ?203,528.

London resilient

Rics said the number of enquiries from potential new buyers was unchanged while the number of homes put up for sale fell slightly.

Rics said the rationing of mortgage funds and economic uncertainty meant the "stalemate" would continue.

Alan Collett of Rics said: "With continued uncertainty over the jobs market and the economy, this subdued picture is set to continue."

"London, however, remains a market apart with both sales and prices showing a greater degree of resilience."

'Stable conditions'

The Rics survey is based on responses from 272 estate agents who are Rics members, but the survey traditionally has its finger on the pulse of the market.

"Anecdotal evidence from surveyors suggests that the uncertain economic climate is making transactions more difficult and longer to conclude," Rics said.

The Rics survey chimes with the latest data published on Monday by the Council of Mortgage Lenders (CML).

It said that in May, the number of new loans for house buyers rose by just 1.7% from April, to 41,500.

However, this was still 5% lower than the level of mortgage lending recorded in May last year.

Only 15,900 loans were made to first-time buyers, up 0.6% from April but down 2.5% from May 2010.

These buyers were still having to put down deposits averaging 20% of the value of the homes they were buying, reflecting the continued caution of lenders in offering new loans.

"There is no evidence of any drastic changes on the horizon or any significant shifts in direction for the mortgage market," said Michael Coogan, the CML's director general.

"These stable conditions are expected to continue for the rest of the year."

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Slump in sales at HMV continues

30 June 2011 Last updated at 08:58 GMT HMV is attempting to refocus its struggling business on new technology sales Sales and profits at struggling High Street music retailer HMV have continued to decline.

The UK firm said like-for-like sales from continuing operations fell 14.5% in its results for the year to April.

The firm hardly broke even, with profit before tax of just ?200,000. Ignoring exceptional items, such as the cost of numerous store closures, underlying profits fell 61% to ?29m.

The retailer is attempting to refocus its business on new technology sales.

Some 150 stores are to be refitted by September, in time for the Christmas sales period.

With sales of CDs and DVDs being undermined by competition from supermarkets and online downloads, HMV is expanding into live ticketing, and digital music and equipment.

Tough task

"We continue to operate in a challenging macro environment, and the core retail markets in which HMV trades also remain difficult," said the company.

"However, we have taken decisive action to restructure the group, and have a clear strategy for transforming HMV into a broad-based entertainment business."

The firm has sold its Waterstone's book stores and its Canadian music retail business - both of which were performing better than its core HMV UK stores.

HMV confirmed a huge impairment charge in connection with the Waterstone's sale of ?112m, pushing it into a post-tax loss of ?122m.

Continue reading the main story Nick Bubb, equity analyst at Arden Partners, said: "It's all about the success of the focus on new technology. [The strategy] has done well in six stores, but can it work in 100?"

"Management credibility is extremely thin," he added, after four profit warnings this year, and a previous failed strategy to diversify into clothes retailing.

Mr Bubb thinks the business will be lucky to break even this year, and has "pretty obviously got off to a bad start already".

The latest set of poor figures had been widely anticipated by the market, and the company's share price rose 2.5% in early trading on Thursday.

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