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House prices 'spinning further out of control'

Official figures showed the average UK home is now valued at £260,000. Credit: PA

House prices are "spinning further out of control", a leading housing charity has warned after figures showed a 9.9% annual rise in UK values.

Campbell Robb, chief executive of Shelter, said: “Each rise in prices means more people stuck living in their childhood bedrooms, or trapped in the cycle of moving from one expensive rented home to the next.

“Worryingly, as house prices continue to rise some will be tempted to overstretch themselves in a frantic bid to get on the property ladder. But with interest rates currently at historic lows it’s a real concern that many might find themselves struggling to make ends meet in the future."

He added: “This is a problem that the government can fix. We need a new generation of quality part-buy, part-rent homes, and to make sure that small builders can get hold of the land and finance necessary to build them."

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Brits 'still feeling the squeeze' despite inflation drop

Brits are "still feeling the squeeze" despite inflation falling to a four-and-a-half-year low, Labour claim.

Wages after inflation have now fallen by over £1,600 a year under David Cameron and the link between the wealth of the nation and family finances is broken.

A huge turnaround would be needed to ensure working people aren’t worse off than when this Tory-led government came to office.

– Catherine McKinnell, Labour’s Shadow Treasury Minister

Inflation 'could fall to 1% by end of the year'

Inflation could fall to 1% by the end of the year, a leading economist has claimed.

Samuel Tombs, UK economist at Capital Economics, said producer price indicators, the strength of the pound making imports cheaper, and political pressure on energy bills were likely to see inflation ease further for the rest of the year.

"Against this low inflation backdrop, we believe the MPC is likely to tread cautiously and raise interest rates only very gradually over the coming years," he said.

First-time buyers face surge in house prices

The average cost of a first home rose by 10.7% in a year. Credit: Chris Ison/PA Wire

First-time buyers face having to pay 10.7% more to get on the property ladder than they did a year ago, new figures show.

The typical starter home now costs £199,000, according to the Office for National Statistics.

The news follows calls for the Bank of England to take action against spiraling values, with some urging a dilution of the controversial Help to Buy scheme for buyers with lower deposits.

The Government says the scheme is working as intended to reach people who need its help the most.

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PM: Inflation fall means 'more stability'

Prime Minister David Cameron has welcomed the fall in CPI inflation to 1.5%, tweeting that it means "more stability and financial security for everyone".

Inflation at lowest level since 2009

The fall in the Consumer Prices Index (CPI) measure of inflation to 1.5% marks the lowest in four-and-a-half years.

Falls in the cost of transport services, particularly air fares, were the largest contributor to the fall, the Office for National Statistics has said.

Heavy discounting by supermarkets also provided a large downward effect.

CPI equalled the rate seen in October 2009. It was last lower, at 1.1%, in September 2009.

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