The Week Unzipped: Housing market subdued despite Halifax report showing rising prices

HOUSE prices across the UK rose by 1.8 per cent in October following a record 3.7 per cent drop in September, according to the Halifax, which puts values 1.2 per cent up on last year.

This follows reports from Nationwide that prices had fallen 0.7 per cent fall last month. The latest Halifax data reinforces the view that property is not yet facing a second slump, but that prices have stabilised and are bumping around current levels.

Halifax stressed the market remains subdued, with transactions are running at half their normal level.

Interest rates held

THE Bank of England has held interest rates at 0.5 per cent for the 20th consecutive month. The monetary policy committee also voted to keep the quantitative easing scheme at its current level of 200 billion. This comes as the US Treasury announced a $600 billion injection into its economy over the next eight months. The decision not to increase the UK quantitative easing programme follows figures showing that British GDP grew by 0.8 per cent over the last three months.

Ethical investments up

MONEY invested in ethical investments rose by a third over the year and now accounts for a market worth 19.2 billion, according to the Co-operative.

This is the biggest annual increase in ethical investments in a decade.

In comparison, total deposits and investments grew by 15 per cent over the same period. Ethical banking has grown by 31 per cent over 12 months, compared to a 4 per cent increase in mainstream banking deposits.

Pushchair problems

PUSHCHAIR theft has become big business, amounting to 60 million, according to Halifax Home Insurance. Sales of buggies priced 500 or more have risen by 40 per cent. These buggies have a high resale value, making them prime targets for criminals.

Thieves grab pushchairs in most cases from inside the home. Car parks, cafes and restaurants are also buggy-theft hotspots. Parents may be unknowingly fueling this trend by buying second-hand buggies to save money.

Boost for savings

ON THE savings front, First Direct has increased the rate on its regular saver to 8 per cent. The product is fixed for one year and requires a minimum monthly investment of 25 to receive the 8 per cent interest rate. Savers may only make one deposit a month by standing order of no more than 300.

Nationwide has boosted rates on a selection of one-year savings accounts by up to 0.25 per cent. Products with new rates include the fixed-rate bond, e-bond, tracker, tracker e-bond and fixed-rate ISA.

The deals all now pay between 2.75 and 3 per cent.

The Post Office has upped interest rates on its reward saver account to 2.75 per cent and increased returns its one, two and three year growth bonds to up to 4 per cent. The reward saver rate includes a 1 per cent bonus for the first 12 months.

Investors may withdraw for free with 30 days notice or immediately with the loss of 30 days interest.