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London house price rise 'slowed to lowest rate' in July

London house prices slowed to their lowest rate last month, making July the weakest growth in the capital's property market in 18 months, experts said.

Read: Housing prices: National average up 11.8%

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Only 12% of postcodes in London had property which rose in value during July. Credit: PA

Momentum slowed to just 0.1% month-on-month, property analysts Hometrack found.

The rise in house prices "slowed dramatically" with just 12% of London postcodes registering price gains in July and a further 11% reporting a drop.

Hometrack said this marked the first time in four years that London has had a smaller proportion of markets registering price gains than regions across England and Wales.

Read: Record level gap between house prices in London & rest of UK

More than half of 'bedroom tax' households 'in arrears'

Almost 60% of households affected by the "bedroom tax" changes were in arrears as a result of the cut to their housing benefit, an internal Government review has found.

Under the policy, social tenants deemed to have a spare room see their rent eligible for housing benefit reduced by 14%, rising to 25% if they have two or more extra bedrooms.

More than half of households affected by 'bedroom tax' were in arrears Credit: PA

Some 20% of those affected had paid none of the shortfall and 39% had only paid their landlords part of the money owed, the interim report for the Department for Work and Pensions (DWP) found.

The report found 522,905 households were affected by the policy in August 2013, which equates to 11.1% of social tenancies. Some 57% of claimants were cutting back on household essentials and 35% on non-essentials in order to pay their shortfall.

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Half hour commuters save £358,000 on house prices

Commuters who live around half an hour's train journey from London, in places like Hemel Hempstead, Beaconsfield, Woking, Stevenage, Brentwood and Luton, pay £283,000 for a property on average.

That means a typical saving of £358,000 compared with buying somewhere to live in central London. Their annual rail pass is just under £4,000 on average, Lloyds said.

Half hour commuters save £358,000 on house prices Credit: PA

For those commuting into England's second and third largest cities, Birmingham and Manchester, living further afield does not necessarily pay off. Lloyds said the average Birmingham property price is £40,000, whereas Solihull, which is 15 minutes away has a typical property price £274,257.

The typical property value in the centre of Manchester is £134,873, which is lower than the average house price in nearby areas such as Stockport, at £192,172, Macclesfield at £231,118, Warrington, at £173,581 and Chorley, at £166,107.

Commuters to the capital save £380,000 on housing

Research has found that commuters who spend an hour-long train journey into London are saving around £380,000 on their average house price compared with the cost of living in the heart of the capital.

Lloyds Bank said that homes within a selection of commuter belt areas which are about a 60 minute commute by train.

Commuters to the capital save £380,000 on housing Credit: Pa

Those areas include Crawley, Windsor, Brighton, Rochester, Peterborough and Oxford, typically cost £260,000, which is £381,000 lower than the average price tag for a property within zones one and two in London, at £641,000.

With the average annual rail cost from these areas currently at just below #5,000, it would take someone 76 years of commuting to wipe out the difference in house prices, if property values and rail costs remained at the same levels.

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New housing measures with 'minimal effect' announced

ITV News Economics Editor Richard Edgar reports:

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Bank of England announces measures for the housing market - but with "minimal effect" for now

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"If you could get a mortgage yesterday, you can get a mortgage today," Governor Mark Carney says. Today's changes are an insurance policy

Parties 'must do more to solve Britain's housing crisis'

Politicians must do more to solve Britain's housing problems, a professional body has warned, after a survey revealing Britons' fears over property was released.

The Chartered Institute of Housing (CIH) claimed that the country's housing issues were causing "misery for millions of people", with the younger generation particularly affected.

CIH chief executive Grania Long added:

All parties must do much more to convince the people of Great Britain that they can address the issue.

Now is the time for action - we're challenging all parties to put tackling the housing crisis front a centre in their manifestos.

To have any hope of tackling our housing crisis we must drastically increase the number of new homes we build across all tenures."

Housing costs 'causing stress for 32%'

The online survey of 2,000 people aged 16 to 75 also found:

  • A total of 32% said housing costs were causing them stress
  • Around 40% would be in favour of more homes being built in their area
  • Some 60% of people believe it is harder for them to buy than it was for their parents
  • An estimated 52% said that no political party had the best policies on housing

Read: Britain's housing crisis 'causing misery for millions'

Britain's housing crisis 'causing misery for millions'

Britain's housing crisis is "causing misery for millions", with one in five people considering leaving their area because of the high cost of property, a new study suggests.

The Chartered Institute of Housing, who commissioned the survey, called on politicians to increase the supply of new homes to tackle the issue and ease the concerns of young people.

Latest figures showed that house prices increased by 9.9% over the last year. Credit: PA

Around 20% of people said they were considering leaving their area to find more affordable properties with 36% of 16 to 24-year-olds believing they will have to look elsewhere , the online survey by Ipsos MORI found.

More than half of 16 to 24-year-olds were said to be concerned by about rising house prices, with many concerned about keeping up their mortgage or rent payments.

Latest figures showed that house prices increased by 9.9% over the last year.

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