Darling announces boiler scrappage scheme

A new boiler scrappage scheme has been announced by Alistair Darling in his pre-Budget report.

The scheme will help 125,000 families replace their old boilers with newer, more efficient models.

The scheme, similar to the car trade-in scheme, was one of a series of green measures announced in the report and is hoped to reduce domestic heating and hot water bills and cut greenhouse gases.

In his speech the chancellor said: 'Each inefficient boiler adds over £200 to household bills and one tonne of carbon to the atmosphere. A quarter of all the country's emissions come from households.'

The scheme will see about £200 million added to help cut carbon emissions from homes from April 2010.

Mick Williams, of Williams and Co, a plumber's merchant in Hampshire, who started a petition for the scheme, told inthenews.co.uk: 'All in all it's very pleasing. It's much better than the car scrappage scheme for the environment, small businesses should benefit and house holders will save about £250 a year. So it's a win, win, win situation.'

He did though add that he was yet to see the details of the scheme and stressed the importance of the involvement of small business.

The scheme will be open to households with what are known as G-rated boilers, which are graded as 70 per cent efficient, so long as they replace them with A-rated boilers.

It is also expected to give a boost to British industry, as about 60 per cent of boilers used in the UK are manufactured here. About 120,000 boiler engineers also look set to benefit from increased business.

Some though feel that the pre-Budget report did not go far enough in terms of the environment.

John Sauven, Greenpeace executive director, said: 'Alistair Darling peppered his speech with references to a low carbon economy, but failed to announce the scale of change that would actually give us one. A bold chancellor would have scrapped Trident, saved £100 billion and used the cash to create a green investment bank.

Rent prices to rise in the new year

Rent price

s are expected to rise in the new year, according to a survey published today.

It predicts that the number houses up for rent will fall and so push prices up.

Rent prices dropped during the recession as more properties became available for rent with would-be sellers choosing to let their properties when no buyer could be found.

The findings of a survey by the Royal Institution of Chartered Surveyors (RICS) suggest that this trend is starting to change. Property experts expect to see a rise in the number of houses on the market next year buoyed by house prices which have risen steadily since April.

RICS spokesperson Jeremy Leaf said: 'It seems the current upward trend in the housing market is having a more significant effect on the lettings market, with many of the accidental landlords returning to the sales market to take advantage of the recent price increases.

'As a result the recent oversupply is reversing, with new instructions at the lowest levels we have seen. This of course is impacting on prices and tenants no longer have as strong a bargaining power as they did.'

Some areas including London and the north have already seen a rise in rental prices, and this seems unlikely to change as the demand for renting has increased in every region of the UK, except the East.

On average rents are still lower than they were in July 2008, although they are at an all time high since then.

Mortgage approvals up, record borrowing falls

Banks approved the highest number of mortgages for a year in October, while consumer borrowing, excluding home loans, recorded the largest ever fall.

Figures from the Bank of England found approvals for mortgages reached 57,345 on October, the highest level since March 2008, while the figures for consumer borrowing suggest people are starting to pay off their loans.

Credit card borrowing rose by £134 million from September but October, but the Bank of England said this was offset by a record fall in other forms of consumer credit, of £713 million, for other lending such as car loans.

The figures mean October was the fourth month in a row in which people have repaid more than they took in non-mortgage borrowing.

Mortgage approvals were 18 per cent higher than a year ago, but remortgaging again fell marginally.

Simon Rubinsohn, Royal Institution of Chartered Surveyors (Rics) chief economist said: 'Significantly, net secured lending rose by a little over £3 billion in the three months to October compared with just £443 million in the previous three month period.

'While this is still way down on the level of lending seen at the height of the boom in the market, it does suggest that that there is now a little more give from lenders.

'The pace of price increases is likely to slacken as a little bit more supply comes onto the market but with new buyer enquiries at estate agents still rising more rapidly, it is likely that prices will continue to move higher in the new year even if the extended zero rate stamp duty allowance is removed.'

James Thomas, head of residential development and investment at Jones Lang LaSalle, added: 'Whilst there is evidence to suggest the UK economy is in recovery mode there remain question marks about the depth and sustainability as well as how the public finances can be repaired, quite possibly under a new government.

'The recent pick up in house prices is based on fragile economic fundamentals such as a weak pound, which has driven overseas buyer demand, and a boost from the stock market recovery, both of which are unlikely to be as supportive during 2010.'

House prices up 1.2% in October says Halifax

The Halifax has said house prices rose 1.2 per cent in October, marking the fourth consecutive monthly rise.

Average home prices now stand at £165,528 according to the bank, rising 2.9 per cent, or £4,667, since December 2008.

However, annually prices were 4.7 per cent lower, causing forecasters to be wary of a housing market recovery for some time.

James Hyman, partner for residential sales at property consultants Cluttons, said: 'It is encouraging to see the latest Halifax house price figures supporting those of many other commentators and showing that house prices increased once again in October, marking the fourth consecutive monthly increase on their index.

'However, the price recovery is mainly due to the supply crisis and will not last forever. Those sellers who have bitten the bullet and put their homes on the market in Central London in the last few months have been well rewarded, but I would expect to see an increase in supply over the coming months and particularly in the New Year. We could see a buyer's market return in early 2010.'

The Halifax figures showed prices were 2.9 per cent higher in the quarter to October, when compared to the previous quarter. Halifax also agreed that it was higher demand and a supply shortage which could be behind today's figures.

Martin Ellis, Halifax housing economist, said: 'Demand for houses has risen in recent months due to the very low level of interest rates, the decline in property prices since the summer of 2007 and a pick-up in consumer confidence on the back of better economic news. Higher demand has combined with a low level of properties available for sale to result in rising house prices over the past few months.

'There are some indications that more people are deciding to put their homes on the market, encouraged by the recent improvement in market conditions. A continuation of this trend could help to improve the balance between supply and demand, curbing the strength of the stimulus to house prices resulting from the current imbalance.'

Housing market recovery 'moderating'

The housing market recovery hailed by many property analysts is seen to be 'moderating' over autumn, figures show today.

Nationwide's monthly house price index (HPI) for October showed prices rose at a slower pace over the month at, 0.4 per cent.

However, annual house price inflation has turned positive for the first time since March 2008. The average price of a home, according to the building society, is now £162,038.

Martin Gahbauer, Nationwide's chief economist, said: 'House prices rose for a sixth consecutive month in October, but the strong upward momentum in property values seen over the summer is showing some signs of moderating as we head into the autumn months.'

In September prices rose by 0.9 per cent, and in July and August they rose 1.4 per cent each. This has led Nationwide to believe the rise may be steadying.

Mr Gahbauer added: 'A moderation in the rate of house price inflation was to be expected, as the very strong monthly increases seen over the summer months were unlikely to be sustainable over the long run.

'Slower house price inflation is also consistent with developments in housing market activity, as industry figures have shown that the pick-up in mortgage approvals for house purchases has lost some momentum in recent months.

'Although too early to tell for sure, it may also reflect a more natural level of stock available for sale coming to the market, alleviating some of the extreme shortages of property on the market seen during most of this year.'

Yesterday, the Bank of England said the number of approvals for home loans rose to an 18-month high in September.

Council of Mortgage Lenders economist Paul Samter said: 'There is clear evidence of a significant pick up in housing market lending activity from a year ago, even though it remains low on any historic comparison.'

'Positive signs' for housing market

Mortgage lending is showing 'positive signs' with gross mortgage lending in the third quarter at £38.9 billion, up 18 per cent on the previous quarter.

However, experts have noted the results from the Council of Mortgage Lenders (CML) cautiously, as the figures are still 36 per cent down on the same quarter last year.

The CML said there had been a pick up in house purchase activity, but added that this had been off-set by a decline in remortgaging.

CML economist Paul Samter said: 'House buying activity is running at considerably higher levels than around the turn of the year. However, it remains weak on any historic comparison and is unlikely to rise much further given the constraints the lending community faces and a still difficult economic backdrop.

'But there are some positive signs to look to. While the retail side, both in terms of mortgage and savings activity, has thrown up few surprises, it is encouraging that the wholesale markets have begun to thaw.

'Some of the UK's highly rated institutions have been able to issue structured finance products backed by mortgages in recent weeks. This is only an early sign of wholesale investors tentatively coming back into the new issuance market, but is welcome nonetheless.'

David Brown, commercial director of LSL Property Services, added that despite the CML's news, 'we shouldn't be jumping for joy yet'.

'The number of transactions taking place is being reined in by the limited supply of affordable mortgages to two crucial groups- first-time buyers and property investors,' he added.

Home lending affordability to be 'tested'

Mortgage affordability will be tested by lenders under major reforms to the UK mortgage market announced today.

But the Council of Mortgage Lenders (CML) has called the reforms 'ironic' given the need to encourage lending and the flow of mortgage finance to aid the beleaguered housing industry.

The Financial Services Authority (FSA) set out the proposals under their Mortgage Market Review discussion paper. It said the paper 'reflects the FSA's changed approach to a more intrusive and interventionist style of regulation'.

Under the proposals, the FSA suggested imposing affordability tests for all mortgages and making lenders ultimately responsible for assessing a consumer's ability to pay. They also indicated a ban on 'self-cert mortgages', the sale of products which contain certain ‘toxic combinations' of characteristics that put borrowers at risk and on arrears charges when a borrower is already repaying and ensuring firms do not profit from people in arrears.

The watchdog also recommended that all mortgage advisors should be personally accountable to the FSA.

Jon Pain, FSA managing director of supervision, said: 'The mortgage market has seen extraordinary upheaval over the last 18 months and whilst it has worked well for the vast majority of borrowers, some have suffered great financial distress. We recognise that we need to bring about a step change in regulation and we need to act now to address the issues we have identified.

'The FSA needs to ensure that firms only lend to people who can afford to pay the money back. The reforms that we have announced today will ensure that the mortgage market works better for consumers and that it is sustainable for firms.'

The paper is open to discussion until January 2010.

However, the CML, while welcoming the paper, has said 'some of the wider political rhetoric around lending issues continues to seem more conducive to rabble-rousing than to properly considered debate'.

'We agree with the FSA that regulation in itself cannot resolve the problems of the recent market. However, we also agree that clearly delineated responsibilities, which remove regulatory ambivalence, will help lenders, intermediaries and consumers to know where they stand, and to accept the consequences of their actions.

'As always with regulatory change, the devil may be in the detail. But we welcome the consultative approach, and look forward to working with the FSA to ensure that the objective of regulatory fairness between lenders, intermediaries and consumers is achieved in practice,' Michael Coogan, CML director general, added.

Remortgaging deals down 57 per cent

The number of remortgage deals in August was down 57 per cent on a year ago, new figures show.

However, there is some good news for homeowners with the number of home purchase deals going through up 29 per cent.

A five per cent drop in homebuyer lending was recorded in August from July – as the market saw a summer dip, according to Council of Mortgage Lender data.

A total of 19,200 first-time buyer mortgages went through in August – on an average loan-to-value rate of 75 per cent.

This means the average first-time buyers now must raise a £38,200 deposit for a £152,000 property.

A year ago the average LTV value was 85 per cent.

The average income multiple has also dropped from 3.21 a year ago to 3.03 times salary now – as lenders tighten up lending to first-time buyers.

While the mortgage market has picked up strongly from the start of the year, mortgage lenders are not promises great further improvements.

CML economist Paul Samter said: “House purchase activity has revived from its moribund state at the beginning of the year.

'It will be a drawn out recovery process with seasonal ups and downs, but house purchase activity is now on a firmer footing.'

He added: 'Remortgaging demand has fallen away in the low interest rate environment and this is dragging down gross lending levels overall.'

Many homeowners are now not choosing to remortgage – instead remaining on low standard variable rate deals with their lenders.

Many buyers from over the last two or three years are also finding house price falls have eaten away at their equity and left them unable to access better remortgage deals at low LTV levels.

House prices show 'fairly flat market'

House prices in England and Wales have shown a 'fairly flat market' according to the Land Registry.

The annual drop of 9.4 per cent was up from the low of 16.3 per cent seen in February, and brought average house prices to £155,968.

Other recent figures showing house prices are steadying have been hailed as the beginning of the 'climb out of recession' by some forecasters, but as a 'false dawn' by others.

According to today's figures from the Land Registry, London and the West Midlands experienced the greatest monthly price rise, at 0.8 per cent. This has brought the price of a property in the capital to double the average of England and Wales at a whole, at £310,640.

Keshav Thukaram, managing director of buy-to-let website Smartlandlord.co.uk, said: 'As the Land Registry figures are based on completed transactions they always lag behind the market. The latest figures from LSL Property Services suggest we are in for some rises.

'Our own experience mirrors this. Although mortgage lending is still restricted, Smartlandlord.co.uk has seen a steep increase in the number of enquiries for advice on the best mortgage deals available to investors right now – including from overseas investors.

'Although that’s all very positive, I am not convinced we are seeing a sustained economic recovery.'

Today's figures showed all regions experiencing a decrease in their average property value in the last year, with the most significant fall in the north-west, which saw a decrease of 12.7 per cent. Hartlepool experienced the greatest annual price fall with a drop of 23.7 per cent.

Homebuilders looking for cash injection

Homebuilders Barratt and Redrow have announced plans for a multi-million pound cash injection.

Redrow announced proposals to raise £150 million through the issue of new shares, while Barratt look to accrue £720.5 million from the issue of 618.4 million new ordinary shares.

Construction of new homes has been hit particularly hard by the recession, as one of the sectors most significantly affected by job losses and by the state of the housing market.

Redrow's rights issue has been supported by its founder and chairman of Steve Morgan, who owns 29 per cent of the company. He said: 'The proposed rights issue will strengthen Redrow’s balance sheet and position Redrow for growth.

'We are returning Redrow to its traditional focus on a great product in the market for family housing. We now need to enhance our ability to acquire land through selected acquisitions. This is all part of our strategy to steer the business back to delivering a much improved return on capital employed.'

Barratt Developments said the second half of 2009 had seen stability return in the UK housing market, adding that overall reservation prices were running ahead of internal expectations.

Mark Clare, chief executive of Barratt Developments, said: 'This has been an intensely difficult year for the group following the sharp decline in the UK housing market. In the first half, as prices fell, we drove sales and reduced stock and debt levels. In the second half we have been able to maintain price levels and increase our reservation rates, with these encouraging trends continuing through the summer into the autumn.

'The board has therefore decided it is now an appropriate time to substantially strengthen the company's balance sheet and reduce its debt levels via a placing and a rights issue. This will also enable the group to develop a number of its existing sites and to take advantage of land purchasing opportunities as they arise.'

Lib Dems set out plans for tax on £1m properties

The Liberal Democrats have unveiled plans for a tax on the owners of properties valued at over £1 million.

Treasury spokesman Vince Cable officially unveiled the measures during his speech to delegates at the party's annual conference in Bournemouth.

The plans will see a 0.5 per cent annual levy on properties that exceed £1 million in value, therefore if a home is worth £1.5 million, the tax would equate to £500,000 – an annual payment of £2,500.

During his speech, Mr Cable criticised the current 'unfair' council tax system that sees millionaires paying the same amount as those in the lowest bracket.

'We have seen the super-rich pouring their money not into job-creating businesses but into acquiring mansions,' he said.

'And remember too that under our unfair council tax Messrs Mittal and Roman Abramovich in their £30 million palaces pay the same as a band H family home though their properties may be worth 40 or 50 times as much. That small levy alone would lift 300,000 low paid workers and pensioners out of tax.'

The Lib Dem treasury spokesman also said under his party's plans to increase the lower income tax threshold to £10,000, four million people would no longer be required to pay income tax.

Prior to the speech, however, some delegates had voiced their displeasure at the proposals for taxing the owners of properties worth more than £1 million.

When asked how the scheme would affect people in London and South East, where the majority of the properties are, the party appeared non-plussed and seemed unable to able say how many houses there were in the country valued at over £1million.

'This is one of a number of proposals by the party, it does not change our plans in income tax, it is instead intended to raise money from those who can most afford to pay,' a party insider told inthenews.co.uk.

The party, however, was unable to offer any assurances into how the houses would be valued.

RBS 'to move away from asset protection scheme'

The Royal Bank of Scotland (RBS) has said it is looking to move away from the government's asset protection scheme (APS).

Just last week Lloyds Banking also made a similar move to edge out of toxic insurance.

RBS, which is 70 per cent owned by the state, is reported to be looking at raising as much as £4 billion from share holders as an alternative to the APS. Under the scheme, the banks would take the initial hit on losses from toxic assets, with the tax payer covering the rest.

RBS have refused to comment on the reports, but a spokesperson said there were meetings with investors ahead of joining the APS 'to assess investor appetite' but any deal was a long way off. She added any share issue would be 'modest'.

However, the cost of the insurance scheme – which could see both Lloyds and RBS handing over greater stakes to the government – is considered to be too high. It is estimated the government holding of RBS could go as high as 84.5 per cent.

The RBS share price remains heavily depressed, but has risen from the level of 10p in January to now over 56p.

The rise in the share price, it is hoped, suggests investors may have a greater interest in investing in RBS.

The bank, however, is not looking to step away from the APS completely, but limit its exposure to the scheme.

In early trading today, the RBS share price was down 1.95 per cent to 55.20p.

House prices up 0.6%

House prices have risen by 0.6 per cent this month, a house price index (HPI) from Rightmove has found today.

The monthly housing survey by the online estate agency found the market was strengthened by the south-east, but stock levels were at their lowest level for 18 months.

The average house price is now £223,996, with Rightmove saying the property market is being greatly influenced by lenders' caution driving sales in the affluent south, and 'would-be sellers deterred from trading up by dwindling property choice and high deposit requirements'.

The Rightmove HPI is based on asking prices rather than completions, and this month showed ten properties were coming off the market for every eight coming on, with 29 per cent more properties coming off the market than coming to the market.

Miles Shipside, commercial director of Rightmove, said: 'The recession appears to have hit prices harder in the north, and this is compounded by lenders' more conservative attitude to risk.

'Lenders quite naturally prefer to lend to lower risk borrowers in better locations, with better job security, larger deposits and more resilient property values. Indeed it becomes a self fulfilling prophecy, keeping the best areas more buoyant and making it harder for depressed areas to bounce back.'

First positive house price balance for two years

House prices turned positive for the first time in two years, according to a housing market survey out today.

The Royal Institution of Chartered Surveyors (Rics) has found the net balance of chartered surveyors reporting rises rather than falls in house prices reached a positive reading of 10.7 per cent in August from a negative reading of 5.7 per cent in July.

Yesterday economic forecasters at Ernst & Young warned house prices would not reach their 2007 peak for another five years, and only a lending pick-up would lead to recovery. However, the Council of Mortgage Lenders (CML) said mortgage lending was improving, saying 'gross lending rose significantly' for the second month running.

Today's survey from Rics found the national average had been boosted by data from the south of England, with the net balance of surveyors reporting price rises, rather than falls, in London rising 43 per cent.

Rics spokesperson Jeremy Leaf said: 'Although it is clear that house prices are now rising, it continues to be the lack of supply that is underpinning the recovery in most parts of the country.

'The more positive news flow will gradually encourage vendors to start putting property back on the market. This development should enable more potential purchasers to find desirable properties to buy but it could also present a challenge to the firmer trend in prices particularly when interest rates finally begin to move upwards.'

The sales to stock ratio – a measure of market slack and an indicator of future prices– continued to edge upwards, rising for its eighth consecutive month.

Rics said: 'While activity in the housing market continues to improve, the pace of improvement did slow slightly last month. The net balance of surveyors reporting an increase rather than a decrease in new buyer enquiries edged down, from 61 per cent in July, to 49 per cent in August.'

Stabilising housing market a 'false dawn'

Economic forecasters have warned house prices will not reach their 2007 peak for another five years, and only a lending pick-up will lead to recovery.

However, the Council of Mortgage Lenders (CML) has said today mortgage lending is improving, saying 'gross lending rose significantly' for the second month running.

The Ernst & Young Item Club released a special report today which highlighted that despite recent signs of 'green shoots' in the housing market, recent price rises could not be sustained beyond the spring of next year. The forecasters say the current rises could indicate a 'false dawn leading to a 2010 dip'.

The prediction from Ernst & Young is that prices will stagnate for the next two years, before picking up from 2011. However, 2007 peaks are not predicted to return for another five years.

Hetal Mehta, senior economic advisor to the Ernst & Young Item Club said: 'Item believes the current stabilisation in the housing market is a false-dawn.

'Price rises largely reflect the acute shortage of available properties, with many homeowners either trapped in negative equity or reluctant to sell for fear of locking in the losses of the past two years. A small number of cash-rich buyers have supported prices, but the supply of these funds is limited, which means prices are likely to dip again in the first half of next year.'

Despite this forecast for the beleaguered property market, the CML has found that while remortgaging remained unsurprisingly weak, lending for house purchases showed its first material annual growth in July for the first time since early 2007.

Lenders discovered mortgage lending in July was concentrated more towards home movers, rather than first-time buyers. However, compared with a year earlier the rise in first-time buyers was higher, up 22 per cent, compared with a 17 per cent rise in the number of movers.

Andrew Goodwin, senior economic advisor to the Ernst & Young Item Club, said it was those trying to get on to the property ladder that would be vital to the market recovery.

He said: 'In order for the housing market to function properly it is essential that first-time buyers are bought back into the market, else the current status quo of a low number of transactions, dominated by speculative cash buyers, is likely to be maintained.

'It's tempting to call the turn in the mortgage market at this point, and there is certainly concrete evidence that lending for house purchase is increasing. But there are still constraints affecting the lending industry's capacity to fund increased lending, as well as less consumer motivation to remortgage for the time being. The overall lending picture is likely to stay relatively subdued for some time, especially as the wider economy is far from robust as yet,' warned CML economist Paul Samter.

The National Association of Estate Agents (NAEA) have also pointed to first-time buyers as key to a housing market recovery, but are more optimistic about the sector's upturn as a whole.

President Gary Smith said: 'There is a long way to go before things stabilise – and a real need for sensible government policies and responsible lending – but indicators do suggest that the bottom has been reached and that the slow process of recovery may have begun.'

Lenders braced for autumn of discontent

Mortgage lenders are warning of a challenging autumn despite a 26 per cent rise in lending in July.

Between June and July total lending rose £16 billion as house sales improved over the month, figures showed today.

The Council of Mortgage Lenders (CML), which compiled the data, warned that house purchases routinely rise in the summer, noting that the figure is still £11 billion lower than the average in July – the lowest since 2001.

'The housing market has continued to improve gradually in recent weeks, as activity picks up further from the lows seen around the turn of the year,' said CML economist Paul Samter.

'But, as the Bank of England has pointed out, the economic backdrop remains challenging and the housing market recovery is fragile.

'We may see a modest dip towards the end of the year as seasonal factors weaken.'

The CML said the housing market recovery is likely to be fragile and will continue to be subdued while unemployment is high and banks need to restructure their balance sheets.

The group added that the trend for the remainder of the year would be a 'slow but more stable market'.

Home repossessions ease during spring

Repossessions during the second quarter eased by ten per cent, according to figures out today.

The Council of Mortgage Lenders (CML) found the number of homes repossessed in the second quarter was down on the first quarter, although the number of cases was 14 per cent more than last year.

However, the CML warned the outlook for the housing market was still 'challenging'.

In the three months to June there were 11,400 cases of possession, ten per cent fewer than the first quarter of the year, but 14 per cent more than the same quarter the year before.

The CML also said there was a 'modest deterioration in arrears during the second quarter'.

The total number of possessions for the first half of 2009 now stands at 24,100. The CML's forecast for the whole year is 65,000.

The CML's head of policy Jackie Bennett said: 'With unemployment rising and the economy still weak, the outlook will remain challenging for the rest of this year and into 2010. But today's data shows that lenders are committed to helping borrowers manage their way through temporary payment problems and get their mortgage back on track over time, avoiding possession where possible.

'Clearly, low interest rates are also helping borrowers who are committed to working to resolve their arrears, paying what they can - and when they can - towards their mortgage, and maintaining good communication with their lender.

'The key message continues to be to talk to your lender as soon as possible when difficulties emerge and take advice from an independent money adviser if you have other debts as well as your mortgage.'

The CML also released figures on buy-to-let today, which 'showed the first signs of stabilising'.

Keshav Thukaram, managing director Smartlandlord.co.uk, said: 'These encouraging figures released by the CML today confirm what Smartlandlord.co.uk has said all along: the market has bottomed out and is starting to recover – albeit slowly. This should be a wake-up call for all buy to let lenders to start lending more aggressively.'

However, the CML warned the buy-to-let market was still vulnerable to employment, with unemployment this week reaching 2.44 million.

CML senior policy adviser Rob Thomas said: 'So long as properties have paying tenants, landlords now have much greater ability to service mortgage payments and we expect arrears to continue to fall as landlords are helped by lower interest rates. But healthy rental demand is contingent on a number of factors, including tenants’ continued employment.'

Theft and burglary hotspots revealed

The UK's most likely areas to be victims of theft and burglary have been revealed, with Nottingham topping the list.

London claimed five of the top 20 areas which were most at risk, according to the research from moneysupermarket.com.

The price comparison site analysed 2.6 million home insurance inquiries last year, with NG5 in Nottingham taking top slot for the most claims by postcode.

Julie Owens, head of home insurance at moneysupermarket.com said: 'Along with many other UK cities London and Nottingham are classed as high risk areas for crime and it is no surprise to see these areas dominating the top 20.

'Properties classified as being in a 'high-risk' area - whether that be for crime, or something like flooding or subsidence, could mean the price of your insurance premiums will be affected. Unfortunately there is no escaping this and to make matters more complicated, there are no hard and fast rules which apply.

'With the UK in the midst of recession, and recent ABI statistics reporting that in the first quarter of 2009, the cost of burglary insurance claims topped £100 million, making it the most expensive quarter for five years, homeowners need to be extra vigilant when it comes to security for their homes.'