Manufacturing and construction output slows

Manufacturing firms have suffered a sharp fall in domestic sales and orders, according to the British Chambers of Commerce, which could sound “the first alarm bell for the UK economy" says the group’s director general, John Longworth. The balance of export sales fell from 30% in the second

Mortgage supply falls to two year low

Data from the Bank of England has shown lending to home buyers has fallen to its lowest level in two years suppressed by the strict regulations that now govern mortgage applications. The BoE’s Credit Conditions Survey showed that for the third quarter of 2014, lenders reported the biggest fall in the amount of credit they were able to supply since the last three months of 2008. This was due to reduced risk appetite and concerns about the outlook for house prices, and came shortly after regulators required them to impose tighter affordability checks on new borrowers. Many lenders noted that operational issues associated with the implementation of the Mortgage Market Review had pushed down on credit availability over the summer," the Credit Conditions survey read. However, the report showed that the banks and building societies expect lending to return to healthier levels in the next three months.

Asbestos victims win damages ruling

Government plans to deduct legal fees from the damages paid to people dying from asbestos exposure are unlawful, the High Court has ruled. The Asbestos Victims' Support Groups Forum UK brought the action against Justice Secretary Chris Grayling. The group challenged his decision to allow 25% of damages awarded to mesothelioma sufferers to be used to pay legal insurance premiums and costs. The Ministry of Justice said it was "disappointed" with the judgment. Mesothelioma is an aggressive cancer caused by exposure to asbestos.It can take decades to develop, yet people live for an average of just nine months after diagnosis. Around 2,000 people are diagnosed each year, and the numbers are set to increase over the next 30 years. Many people seek compensation by taking legal action against their former employers or the employer's insurance company.
Read more about it in this article: http://www.bbc.co.uk/news/health-29462702

Stamp duty revenues hit £6.5bn

Latest figures show buyers of million-pound houses paid almost £2bn of stamp duty last tax year. The government raised a total of £6.5bn from residential stamp duty land tax in 2013-14, an increase of 31% year-on-year. “These figures should dispel the myth that high value property does not make a significant contribution to the tax take," said Lucian Cook of Savills. Addressing the Conservative Party conference, Boris Johnson bemoaned the cost of stamp duty for Londoners, after data revealed the average London homebuyer was hit with a stamp duty bill of almost £16,000 in the year to April – more than three times the national average of £5,200. Paula Higgins of the Homeowners Alliance echoed Mr Johnson’s comments, warning that the majority of people across the capital are now paying “silly amounts in tax - £15,000 to £30,000 on average - to own a home.”

Mortgage lending at three month low

Bank of England statistics have shown that loans to homebuyers fell to a three month low in August, with approvals falling from 66,100 in July to 64,212. Matthew Pointon, property economist at Capital Economics, said the “rapid deceleration” is due to expensive house prices. The Bank of England has pointed to the introduction of the Mortgage Market Review - which tightened lending criteria - as a cause. However, data from the National Association of Estate Agents shows the number of first time buyers has increased for the first time since April this year. Its survey indicates that 28% of sales were to first time buyers in August. Meanwhile, the Bank of England is preparing to deliver its verdict on Thursday as to whether new powers are needed to guard against risks building up in the housing market following the introduction of the Help to Buy mortgage guarantee scheme