House prices in UK 'stabilising'

29 July 2011 Last updated at 12:03 GMT Chief Economist at Nationwide, Robert Gardner: "It's a very stable picture in the housing market at the moment"

House prices are stabilising, according to the latest monthly report from the Nationwide building society.

Prices across the UK rose by 0.2% in July, to ?168,731, leaving them just 0.4% lower than a year ago.

The society said demand for homes was still sluggish, and a gradual rise in the supply of available houses was keeping prices stable.

Separate figures from the Bank of England showed a slight rise in mortgage activity.

Down and up

Although prices are almost the same as they were a year ago, since July 2010 they have fallen and then recovered, according to the Nationwide's measurement.

Completed sales are still running at roughly half the level recorded before the banking crisis. Since December 2010, the average house price, not seasonally adjusted, has now gone up by 4%.

Economists often argue that the best guide to short-term trends is to compare the average price over the last three months with that of the previous three.

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Property transactions are at severely low levels due to the disconnect between buyers and sellers”

End Quote Matt Hutchinson Spareroom.co.uk The Nationwide says that on that basis, prices have risen by just 0.3%.

The building society's chief economist, Robert Gardner, said this stability reflected the "uncertain" state of the economy.

"House prices remain relatively high compared to incomes and, together with more demanding deposit requirements, this is dissuading, or at least delaying, some first-time buyers from entering the market," he said.

"The Nationwide talks of stability, but this is little more than a euphemism for stagnation," said Matt Hutchinson, director of flat and house sharing website Spareroom.co.uk.

"With the exception of London, property transactions are at severely low levels due to the disconnect between buyers and sellers. Properties are not selling because what buyers are prepared to pay falls well short of what sellers are willing, or able, to accept."

Figures released on Thursday by the Land Registry, which covered prices in June, found that prices over the previous year had varied significantly in different regions of England and Wales.

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Mortgage market The number of home loans approved for house purchases rose slightly in June, according to figures published on Friday by the Bank of England.

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Pressures on household finances such as high inflation and low wage growth are clearly taking their toll on the ability of households to save”

End Quote Adrian Coles Building Societies Association There were 48,421 mortgages approved for house purchases - higher than the average of the previous six months of 45,850.

But, with few signs of interest rate rises in the coming months, the pace of remortgaging activity has slowed.

Although there was a slight rise in the number of approvals for remortgaging to 30,705, this was below the average of the previous six months.

Consumer borrowing through loans and credit cards also rose slightly in June, the Bank's figures showed.

Figures from the Building Societies Association (BSA) show that the stock of savings held in mutuals in June shrunk by ?362m.

"Pressures on household finances such as high inflation and low wage growth are clearly taking their toll on the ability of households to save," said BSA director general Adrian Coles.

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US consumer prices fall in June

15 July 2011 Last updated at 14:35 GMT US drivers still experience fuel price shock The cost of living in the United States fell in June, as a sharp drop in energy cost offset other price rises.

Consumer prices fell 0.2%, their first monthly fall in a year; excluding energy and food, prices rose slightly. The annual inflation rate was 3.6%.

However, a survey of consumer confidence suggests US shoppers are feeling increasingly pessimistic.

Worries about falling incomes and rising unemployment pushed confidence to its lowest since March 2009.

According to the Thomson Reuters / University of Michigan survey, the measures of both the current economic conditions and consumer expectations dropped to their lowest since 2009.

Separately, a much-watched gauge of manufacturing activity in the state of New York showed a contraction for the second month in a row, a worse than expected performance.

Earlier this week, the chairman of the US central bank, Ben Bernanke, had said that recent price rising would probably be temporary, because of rising unemployment and slow growth.

However, the rise in core inflation - which excludes the cost of energy and food - was the biggest monthly gain in three years and some Wall Street analysts continue to believe that inflationary pressures are building.

"The world is no longer deflationary, and you're seeing that in spades in core commodities," said Eric Green, chief economist at TD Securities in New York. "We are getting a very, very sharp rebound in core inflation and much more than the Fed bargained for."

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World food prices close to record

7 July 2011 Last updated at 10:57 GMT Asia Business Report's Sharanjit Leyl says governments need to look at ways to increase production

Global food prices rose sharply in June, according to the UN Food and Agriculture Organisation (FAO), after a steep increase in the price of sugar.

The price of sugar rose by 14% last month, as a result of high demand and lower production in Brazil.

The FAO's food price index reached 234 points in June, close to February's record level of 239.

The sugar price rise fuelled most of the increase, cancelling out falls in prices of wheat, corn and soya.

The FAO's measure looks at a range of essential foods, including cereals, oilseeds, dairy, meat and sugar.

High food prices - particularly those of wheat, rice and corn - have sparked civil unrest in a range of countries where people rely on them for the bulk of their food intake.

They were one of the factors that drove people on to the streets of Arab countries earlier this year.

A global food crisis in 2008 also triggered mass protests, including riots in some developing countries.

World cereal output is forecast by the FAO to be 3.3% higher in 2011-12 than in the year before.

The agency's most recent bi-annual Food Outlook said that spiralling demand meant that global food prices would remain high and volatile throughout this year and into next despite record food production.

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Bumper crop sees corn prices fall

1 July 2011 Last updated at 06:19 GMT Continue reading the main story The price of corn suffered its biggest fall for 15 years on Thursday, prompting speculation that the high cost of food may start to ease.

Corn prices fell 10% after a US Department of Agriculture report said that farmers were sowing unexpectedly large amounts of the grain.

The price of other crops, including soybeans, also fell on speculation that future stock levels will remain high.

Corn prices recently hit a record, helping to fuel inflation worries.

The report said farmers in the vast crop regions of Iowa and Minnesota had been planting substantially more grain.

Corn futures, which were just under an all-time high of $8 (?5) a bushel at the start of June, finished 9.9% down at $6.29 on Thursday. At one point, the price was down almost 12%.

Wheat futures ended 8.8% down, with soybeans 2.1% lower. The falls continued on Friday, with wheat futures down almost 2% in early Asia trading.

The Agriculture Department report, which said that far more grain acreage was being planted than expected, came despite recent bad weather in the US mid-west.

"There are some big surprises in this report," said Karl Setzer, commodity expert at the MaxYield Cooperative in Iowa.

The report said farmers had planted 92.282 million acres with corn this spring, well above an average trade estimate of 90.767 million acres.

The increase in planting comes as Russia is expected soon to lift a year-long ban on grain exports.

Price delay

More expensive grain has led to food price rises, with everything from meat and cereal to soft drinks costing more in the supermarket.

A huge harvest in August is likely to slow food inflation, which was predicted to rise between 3%-4% this year in the US.

Analysts say it typically takes about six months for changes in commodity prices to feed into retail food prices.

"All of us who perceived tighter [corn] supplies... were proven wrong today," said Jason Ward, an analyst with Northstar Commodity.

However, Mr Ward pointed out that the extra acreage had yet to be harvested and could be damaged by further bad weather.

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Slide in oil prices gathers pace

27 June 2011 Last updated at 07:21 GMT Continue reading the main story Oil prices have extended their falls from the end of last week amid continuing concerns about the Greek debt crisis and the weak US recovery.

The International Energy Agency's decision to release emergency reserves last week has also depressed prices.

On Monday Brent crude for August delivery fell $2.95 to $102.72 a barrel, while US light, sweet crude dropped $1.13 cents to $90.14 a barrel.

The strengthening US dollar has also depressed prices.

Attention is now turning to economic data due out in the US on Friday.

The Institute for Supply Management is expected to report that factory activity slowed in June from May's level, which was already the slowest since September 2009.

"The market is trying to pre-empt Greece and worries in the West," said Jonathan Barratt from Commodity Broking Services in Sydney.

On Thursday the IEA announced that it was to release two million barrels of oil a day over 30 days, partly to replace lost production from Libya.

The Greek parliament is debating austerity measures on Monday, ahead of a crucial vote on Wednesday.

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House prices continue to decline

28 June 2011 Last updated at 11:10 GMT Prices are still drifting down in most regions of England and Wales. House prices in England and Wales are continuing to fall, according to the Land Registry.

Its latest monthly survey, for May, shows that prices dropped by 0.4% that month, to push them 2.2% lower than a year ago.

The fall in prices means the average property in England and Wales is now worth ?161,823.

Only in London have prices risen in the past year, by 2.9%, with the average home in the capital costing ?344,819.

"The divergence in price change between London and the rest of the country continues to grow," the Land Registry said.

Prices across England and Wales have now fallen in seven of the past nine months, taking them back to where they were at the end of 2009.

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Afghan unease over saffron prices

17 June 2011 Last updated at 11:31 GMT There are demands for new Afghan processing and packaging systems Farmers in western Afghanistan say that saffron prices have declined sharply over the past year, raising fears that some may resume opium cultivation.

Saffron has been promoted as an alternative to opium and a profitable crop for farmers.

But growers in the province of Herat, which borders Iran, told BBC Pashto that prices have dropped by up to 60% as supply has outstripped demand.

Afghanistan, in particular Herat, has the ideal climate for growing saffron.

Afghan officials say that last year Herat produced more than two-and-a-half tonnes of saffron. This year they expect more than three-and-a-half tonnes to be produced.

Last year pure saffron sold at $4,500 (?2,787) per kilo but now that price stands at $1,500. The high prices of saffron, the world's most expensive spice, has benefited cultivators around the world over the years.

Opium alternative

Unconfirmed reports allege that Iran has been flooding the local market with saffron in order to force down prices and drive the Afghan farmers out of business. Correspondents say that Iran has never made a response to such allegations.

Continue reading the main story Saffron is a spice extracted from the flower of the saffron crocusIt is the world's most expensive spice by weightIran produces more than 90% of the world's saffron Other major saffron producers are Spain and North African countriesThe head of the chamber of commerce in Herat, Gholam Jailani Hamidi, told the BBC that the production increase is the key to the price drop. "We need balance in our productivity and demand and we need to find new markets," he said.

But correspondents say that some are afraid the price drop could leave farmers considering whether to revert to growing poppies. Afghanistan is estimated to produce around 90% of the world's opium.

Farmers are still willing to farm saffron and saying they do not want to go back to poppy cultivation as long as the government provides them with financial help, correspondents say.

But Afghan businessmen have been demanding new processing and packaging systems in order to open foreign markets for their product.

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Toshiba prices tablet below iPad2

3 June 2011 Last updated at 02:45 GMT The growing popularity of tablets has seen many new players enter the market Toshiba has announced its foray into the fast-growing tablet market with its latest gadget called Thrive.

The Japanese electronics maker has priced its entry level model at $429 (?262), which is cheaper than the base model of Apple's iPad2.

The company said its base model comes with wi-fi ability and is targeted at consumers who use tablets at home.

The tablet will go on sale in the US on 10 July.

'Non-Apple products'

The success of Apple's iPad has encouraged many computer and electronics companies to enter the segment.

Samsung has launched its Galaxy tab, while Sony has also announced its entry with two new models.

While none of them have been able to make a significant dent in Apple's market share, Toshiba said demand for other products was increasing gradually.

"There is a market out there of folks who want to buy non-Apple products," said Jeff Barney of Toshiba America.

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House prices falling, says survey

17 May 2011 Last updated at 15:46 GMT Most surveys suggest prices have been in decline in the past few months UK house prices fell slightly in the first three months of the year, according to the Communities and Local Government department (DCLG).

Its survey shows prices over the first three months of the year prices were 0.5% down on the previous three months.

However, during March alone, prices rose by 1.2%, leaving them 0.9% higher than a year ago.

Prices in London have grown by 5.6% in the past year, far outstripping other areas of the UK.

Nicholas Ayre, director of UK buying agent Home Fusion, said: "The property market, very clearly, has fragmented into a series of micro-markets.

"It could be many years before we see the return of a property market that trends at a national level."

Regional differences

The DCLG survey is based on a 60% sample of all completed house purchases involving a mortgage.

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We do not expect there to be a significant increase in first-time buyer activity in 2011 or 2012”

End Quote Council of Mortgage Lenders It shows that prices have risen in the past year in the south-east and east of England, as well as the East Midlands.

But they have dropped elsewhere, especially in Northern Ireland, where they have fallen by nearly 14% in the past 12 months.

"The DCLG data showing a marked rebound in house prices in March do not materially alter our view that house prices will lose ground over the coming months," said Howard Archer of IHS Global Insight.

"House prices are notoriously volatile from month to month and from survey to survey.

"Furthermore, both the Halifax (by 1.4% month-on-month) and the Nationwide (by 0.2% month-on-month) reported falls in house prices in April," he added.

Property ladder

The falling price of homes should assist potential first-time buyers.

However, in a report published on Tuesday, the Council of Mortgage Lenders (CML) said that first-time buyers were one of the groups who had not been "well served" by current conditions in the housing market.

The lenders' group said that there was no single solution to the issue.

"Although there have been a number of initiatives to help first-time buyers, the relatively small scale on which they operate - combined with a severe shortage of funding, and a risk-averse market environment - means that we do not expect there to be a significant increase in first-time buyer activity in 2011 or 2012," the CML said.

"The reality for first-time buyers is that, although there is widespread sympathy for their plight, they are only one of a number of different types of consumer who are experiencing difficulties in challenging housing and mortgage market conditions."

Other groups facing difficulties included those in negative equity after buying their first home at the height of the boom, and those whose mortgage deals were no longer available on the market.

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Delhi protests over petrol prices

16 May 2011 Last updated at 08:09 GMT The protesters want the petrol price hike to be rolled back Protesters have blocked roads in the Indian capital, Delhi, over recent increases in petrol prices.

The demonstrations, organised by the opposition Bharatiya Janata Party (BJP) party, have caused massive traffic jams in the city.

They want the government to reverse the price hikes.

At midnight on Saturday, state-run oil firms raised petrol prices by 5 rupees a litre - the steepest ever single increase in petrol prices.

This is the seventh hike in 11 months and analysts say it will worsen inflation.

Last June, the government allowed state-run oil firms to fix the price of petrol but it continues to control the prices of diesel, kerosene and cooking gas to protect the poor and try to keep a check on inflation.

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