TRIBUTE TO THE LATE LORD DEEDES

WE wish to add our tribute to Lord Deedes, 1913 to 2007, who died on Friday. Reporter, ex-Editor of the Daily Telegraph, soldier, politician and citizen of the world, William Francis (Bill) Deedes was an inspiration to the media and to the world in general: talented, well informed but compassionate and sensible, directing his fire with considerable effect right to his final month.

The world needs such giants as beacons, he will be greatly missed by all in journalism.

1st Time Buyers Ability to Buy Index hit an all time low.

THE Index, which takes into account the average cost of homes bought by 1st time buyers, average income and mortgage interest rates, fell to 41 points - the lowest level since the Index was started 28 years ago.  

Imtiaz Farookhi, NHBC Chief Executive, says:- "The Index reduced dramatically in the 2nd quarter to below the previously lowest level in 1989 and is reflective of the increasing difficulties being experienced by those wishing to buy their 1st home."

NHBC statistics also showed a strong year-on-year rise in new house prices, with the average price of a new home in Great Britain costing £194,000 in quarter 2 this year - 6% higher on the same period a year ago (£183,000).  The most significant average price rise was in Northern Ireland, where the average price of a new build property in quarter 2 this year was £200,000 - 48% higher on the same period a year ago (£135,000).

Additional figures from NHBC show that in the UK there was a total of 52,888 applications to start new homes during the 2nd quarter of 2007 - a 7% increase on the same period in 2006 (49,482). Of that total, 42,485 related to private sector activity (i.e. excluding housing associations), showing little change on the same period a year ago (42,535).  Housing association volumes in the UK increased significantly during quarter 2 2007 with starts totalling 10,403 - an increase of 50% on the same period a year ago (6,947).  NHBC UK figures show there were 50,721 new build completions during the 2nd quarter of 2007 - a 1% decrease on the same quarter last year (51,208).

The average debt in the North West exceeds annual income

WHILE debt in the North West reflects the average across the country - people in the North West are still managing an average debt of £36,627 on an annual income of £27,960 according to a new study compiled for R3 - The Association of Business Recovery Professionals.  The R3 Debt Index, compiled by market research specialists YouGov, asked respondents about their levels of mortgage and non-mortgage debt, and how they had run up their non-mortgage debt - the most important reasons cited included general overspending, unemployment and redundancy, illness, and paying for specific things such as cars and holidays.

In the North West the average salary is £27,960 a year, slightly less than the national average of £30,500. The average overall debt in the North West, including mortgages, is £36,627. Despite representing record amounts of debt in the region, this figure is still well below the national average of £43,920.  The YouGov survey also showed that of the people who feel that their debt is causing them great difficulties and is out of control, 62% haven't sought professional advice and are resorting to taking out extra credit and loans.

"It is a concern that people in the North West have so much debt because we know that so few of them are seeking professional advice.  R3 members deal with people struggling with debt and see the misery this causes the debtor and their families. I would urge anyone with debt problems to seek help and to do so as soon as they become aware of the problems. Taking out further credit simply isn't the answer."

Compared with other parts of the country residents of the North West have an average overall debt of £36,627 while those living in Yorkshire have an average debt of £33,013 and those living in the North East have an average debt of £36,558.  R3 commissioned the Debt Index because it is concerned about the rising level of debt in the country, and is particularly concerned that people are not seeking professional advice to help them with their debt problems. The aim of the Debt Index is to monitor levels of debt and trends over time. This index will be released quarterly. The next statistics will be available on the 31 October 2007.