Political Report

 

Monday 2^nd May 2011
Lloyds Banking Group – Million pound home sales rise at fastest rate since 2006
The number of homes sold for more than £1million increased at its fastest rate for four years during 2010 as the top end of the property market bounced back, according to research from Lloyds Banking Group.
A total of 7185 properties changed hands for a seven-figure sum during the year, 54% more than in 2009 and the biggest annual increase since 2006.  Edinburgh accounted for almost half of Scotland's £1million sales and saw more homes sold in the top bracket than anywhere in the UK outside the south east of England.
But despite the increase, sales of homes for £1million or more are still 13% below the level they reached in 2007, before the financial crisis struck.  The group estimates that there are now around 184,000 homes in Great Britain that are worth at least £1million.
Tuesday 3^rd May 2011
Department for Communities and Local Government – Grant Shapps: Government backs self-builders
Housing Minister Grant Shapps MP has announcedthat the Government will help self-build to become a mainstream housing option – and that Government would play its part by making available publicly-owned land for use by ordinary people to build their own homes.
Self-builders are Britain's largest housebuilder, accounting for about one in five of Britain's new homes each year; but the UK has one of the lowest proportions of new homes built by self-builders in Europe.
Grant Shapps said he wanted to see more land being made available – both private and public – to enable more individual and community self-build schemes.  He called on private investors to bring forward plots, and for local authorities and Housing Associations to show their support.
The Minister said central Government would lead the way: he will shortly announce the first publicly-owned sites to be made available to housebuilders to include plots exclusively for self-builders.
Wednesday 4^th May 2011
Nationwide – House Price Index, April 2011
The Nationwide has published its latest house price index for Aprilwhich shows a 0.2% drop during the month:

Headlines	Apr 11	Mar 11
Monthly Index *	329.1	329.9
Monthly Change *	-0.2%	0.5%
Annual Change	-1.3%	0.1%
Average Price	£165,609	£164,751

 

* Seasonally adjusted figure (Note that monthly % changes are revised when seasonal adjustment factors are re-estimated)

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: “The price of a typical house fell by 0.2% in April, which left prices 1.3% lower than the same period of 2010.  The three month on three month measure of house prices, a better measure of the underlying trend, showed a modest rise of 0.6%.
“There is still little evidence to suggest that price declines will accelerate in the months ahead.  While the UK economy only managed a modest bounce-back at the start of the year, after the weather-induced contraction in late 2010, the economic recovery is expected to gather momentum.”
Bank of England – Lending to Individuals, March 2011
The Bank of England has reportedan increase in the number of home loans approved for house purchase, from 46,708 in February to 47,557 in March. It was the highest mortgage approvals figure for five months, with activity rising slightly after a winter slowdown.
But the figure is still down on the 48,967 loans which were in the pipeline in March 2010, and significantly below the 70,000 to 80,000 a month that economists consider to be consistent with a stable housing market.
Building Societies Association – Mortgage approvals by mutuals jump 29% in March
Mutuals approved £2.1billion worth of mortgages in March 2011, which is up 29% on the £1.7billion approved in March 2010 and compares to £1.7billion in February 2011, according to the Building Societies Association (BSA).
Gross lending by mutuals totalled £1.7billion in March 2011. This is up 8% compared to £1.6billion in March last year, and compares to £1.5billion of lending in February this year.
The key statistics for March show that:
-     Mutuals’ gross lending amounted to £1736million in March 2011 compared to £1605million in March 2010.
-     Net lending by mutuals in March 2011 was -£476million compared -£765million in March 2010.
-     Mortgage approvals by mutuals in March 2011 were £2145 million compared to £1666 million in March 2010.
Friday 6^th May 2011
Scottish, Welsh and Local election results
Election results have been declared from the elections held for the Scottish Parliament, Welsh Assembly and local elections in England.
In Scotland, the Scottish National Party claimed a majority for the first time in the Scottish Parliaments, having claimed 69 seats out of a possible 129, up by 23 seats from the last election.  Labour failed to capitalise on the haemorrhaging of support from the Liberal Democrats, losing seven seats to leave them with 37 overall.  The Liberal Democrats now have only five MSPs, falling into fourth place behind the Conservatives.
In Wales, Labour failed to claim a majority, having won 30 seats in the 60 seat Assembly.  The leader of Plaid Cymru, Helen Mary Jones, lost her seat in Llanelli, as her party lost four seats overall, leaving the nationalists as the third party in Wales with 11.  The Conservatives are now the main opposition in Wales, with 14 seats.
Local elections also took place for 279 councils, with Labour increasing the number of councils which they control by 57, and with 800 additional councillors overall.  The Conservatives fared better than expected, with an increase of 81 councillors and more importantly, 157 councils.  The Liberal Democrats were again the ones to suffer, losing 10 councils and 1056 councillors.