No movement on house front
Fearful homeowners stay put
House of Fraser blamed “greedy landlords” yesterday as it gets set to shut a number of stores, costing hundreds of jobs.
The chain, which Sports Direct boss Mike Ashley recently bought out of administration for £90million, said it expected to announce “some closures” this week following tricky talks with landlords.
“Some landlords are being very collaborative in order to give us a chance at turning the business around and saving hundreds of jobs,” a spokesman said.“However, some greedy landlords would rather see the stores close. Time is running out.”
HOMEOWNERS are so nervous about Brexit, their wages and the ailing economy that only death or divorce can force them to put up the ‘For Sale’ sign.
According to London Central Portfolio’s Residential Index, house sale numbers have fallen by 2% this year across England and Wales, and are down by 6.5% in Greater London. Prices in England and Wales are up 2.5% to around £293,000 with Greater London prices up 2.2% to just over £636,000.
In prime Central London, prices have rocketed by 12.5% to an average of £1.9million despite the number of sales dropping by 8.3%.
London Central Portfolio boss Naomi Heaton said: “Those selling tend to be doing so because they have to, typically as a result of life changes like death, divorce or marriage.
“There are very few causes for optimism in the domestic property market, where real terms, inflation-adjusted, house prices are no higher than they were in 2007.
“Affordability remains heavily constrained as wage growth struggles to out-pace inflation. The continued lack of a defined exit plan from the European Union, combined with economic uncertainty, have caused the market to stagnate.”
A separate survey laid bare the difficulties that those wanting to get on the property ladder face. Online estate agent HouseSimple.com compiled a list of the 30 jobs where the average salary would mean, without help from parents, it would take 100 years to buy an average UK property. It found that full-time bar staff on an average annual salary of £14,390 would have to save for 128 years to afford a house.
Hairdressers and barbers would make it by the year 2143.
Sam Mitchell, chief executive of House Simple.com, said: “This provides a stark picture of the struggle many buyers working in low-paying, but essential, jobs face when it comes to buying a home.”
Shareholders in estate agent Countrywide yesterday approved an emergency £140million fundraising plan to slash the firm’s debt.
Shop prices have jumped for the first time in more than five years, according to the British Retail Consortium.
The BRC-Nielsen figures revealed a climb of 0.1% in August, the first time they
have entered inflationary territory since April 2013. The rise was driven by food prices – up to a seven-month high of 1.9% in August – because of the heatwave blasting fruit and veg.
Non-food price deflation eased back to 1%, down from 1.4% in July as strong demand for summer products meant less discounting. BRC chief Helen Dickinson said: “Despite increases in costs in the supply chain, this month’s figures show retailers are keeping price increases to a minimum.”