Some surprising UK data was released today and for once it was of the pleasant variety. According to Nationwide Building Society August saw the biggest monthly increase in UK house prices for 2 ½ years. In comparison to the previous quarter, in the three months through August house prices fell 0.5 per cent. The 1.3 percent rise in average house prices reported today was attributed to the hardy employment market weathering the economic contraction. Against predictions, and despite the recession deepening in the second quarter, jobless claims fell in July and unemployment figures were the best to come out of the UK for a year.
Robert Gardner, Nationwide Chief Economist, commented on the data: ‘Given the difficult economic backdrop, the extent of the rebound in August is a little surprising [still] conditions remain fairly stable. This may be explained by the surprising resilience evident in the UK labour market, with further increases in employment in recent months.’ He added ‘Nevertheless, the fact that the annual pace of house price decline moderated… provides evidence that conditions remain fairly stable.’
Gardner did then go on to caution (before we all got over excited) that ‘Monthly price changes have been impacted by a number of one-off factors this year.’
He also commented that governmental policies designed to reduce borrowing costs and boost credit availability could bolster the property market. Gardner’s prediction was that ‘House Prices are expected to remain fairly stable over the next two years’.
Whilst many would consider this good(ish) news, for others rising house prices and the renewed sales they could generate are the last thing they need.
Tomorrow, in both England and Wales, it will become a criminal act to squat in a residential home, and that will apply even if the property stands vacant. In the UK the majority of squatters fall within the recession ravaged 16-25 age group.
As it stands, squatting is deemed a civil matter and homeowners must go through the often lengthy process of proving their case and appealing to a civil court before they can reclaim their home. Ministers claim that making squatting a prosecutable offence will give defend the rights of homeowners and ‘slam the door on squatters once and for all’.
From September 1st if squatters are caught police can begin immediate action. They could be dealt a £5,000 fine or six months in jail and some offenders could even be issued with both.
Whilst some applaud the new law others have argued that it will put all ready unprotected people at greater risk and intensify the serious problem of homelessness.
Campaigners have good reason to be concerned. In March of this year it was reported that the amount of people sleeping rough in the UK had gone up by 20% whist homelessness had increased a whopping 14% in a single year, with recession repercussions cited as the main cause. At the time charities warned that the figure failed to account for those living on the streets or in squats and was just the ‘tip of the iceberg’. They also stated that cuts to housing benefits would push many more vulnerable out onto the streets, and if squatting is no longer going to be an option for them there are few other places they can go.
Some squatters have stressed that a lack of jobs and other opportunities had led to their inability to adequately support themselves and afford a real home. Perhaps policy makers should consider that if they are given a criminal record for their actions they may find getting a job in the future and breaking the homeless cycle that much harder.
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