The Week Unzipped: Rate of annual decline for house prices 'fastest in 16 months'

Prices were down 2.8 per cent on February 2010, the fastest rate of annual decline in 16 months.

The figures contrast with data from Nationwide released earlier in the week which suggests that February house prices were 0.3 per cent higher than in January but 0.1 per cent lower than a year earlier. Martin Ellis, housing economist at the Halifax, predicts a decline of 2 per cent in prices for 2011. Halifax blamed a lack of demand for putting pressure on the property market, as people delay moving while the economic outlook remains uncertain.

Welcome intervention

The Financial Services Compensation Scheme is to take over claims against Welcome Finance for the mis-selling of payment protection insurance. The firm sold 500,000 PPI policies but is effectively insolvent and unable to meet any claims against it. The FSCS will contact all policyholders and process any claims regarding policies sold on or after January 14 2005.

Isa rates on the up

Nationwide increased rates on its fixed-rate Isa range. The updated rates start at 3.1 per cent fixed for one year on balances between 1 and 49,000; 3.85 per cent fixed for three years on balances between 1 and 9,999; and 4.3 per cent fixed for four years on balances between 1 and 24,999. The bank also raised the bonus rate on its e-Isa by 0.2 per cent to 3.1 per cent, including a 1.35 per cent introductory bonus, for all balances over 1.

Skipton expanded its fixed Isa range to include 1, 2, 3 and 5 year bonds paying up to 5 per cent. Rates start at 3 per cent fixed for one year, 3.5 per cent fixed for two years and 3.75 per cent fixed for three year. The accounts require a deposit of 500.

Sainsbury's Finance opened two fixed-rate savings accounts paying 3 per cent fixed for one year and 4 per cent fixed for three years. Savers can make one deposit of between 5,000 and 50,000. Withdrawals are not permitted during the term.