In a continuation of the trend in the first half of 2009, it remained the case in the second half that 70% of all transactions in our Midtown, City and Docklands offices were from 100% cash buyers. It was notable that there were fewer overseas buyers in the market in the second half of 2009, in spite of continued weakness of the pound against other currencies, especially the euro. The absence of mortgage finance from British banks available at reasonable terms is hugely influential to the sales markert.

A two-year freeze in council tax has been approved by Lambeth Council’s cabinet.

The freeze, intended to help residents out during the economic downturn, was approved on Monday along with the council’s budget.

The Labour-run council has promised the freeze will be implemented without any cuts to frontline services.

But critics highlighted cuts in the budget for adults with learning difficulties, while £1.5m will be cut from looking after children in care.

The cabinet argued the council has simply made efficiency savings across its services – £36m in total – and the quality of service will not be affected.

The cultural services department, which has suffered a freeze in services such as park maintenance and some library spending after a projected £2.5m overspend last year, has not yet set its budget.

Conservative leader Councillor John Whelan said this suggested the problems in the department were not being resolved and all the while the borough’s parks and libraries were suffering.

But council officers said the budget proposals gave more time to addressing issues and looking at the environment across the department to address the budget properly.

Council leader Steve Reed said officers from across the council should be celebrated for the £36m efficiency savings that had allowed the freeze.

He added: “I think its right we go with a two year freeze because its important people keep their money in their pockets as much as possible at this time.”

Cabinet member for finance and resources, Councillor Jim Dickson, said the council was moving the budget at a time of great economic uncertainty and the budget reflected that, both in allowing suitable reserves in case of further financial crisis and saving money for residents.

He said: “This is a budget which is good for the community, right for the community and good for services.”

Britain has fallen into its worst recession since the 1980s, official government figures have confirmed.

According to the Office for National Statistics the economy shrank again in the last three months of 2008 by 1.5 % and that’s after a 0.6% drop in the previous quarter.

With economic growth falling in two consecutive quarters the UK has met the official definition of a recession. The downturn, greater than economists predicted, marks the worst performance since the slump of the early eighties, which saw unemployment rise above three million.

The figures come as the jobless total soared to 1.92 million and as the Government bailed out troubled banks for a second time, pulling the economy from the brink of collapse.

Chancellor Alistair Darling said the figures underlined the scale of the challenges the government faced. He said: “It’s going to be a difficult year for families in the UK. We need to go about the problem with a sense of purpose.”

But Christian financial advisor Sid Cordle said people need to start seeking God for the solution:

“What we need to do as a nation is get on our knees and realise that maybe man has not got the answer to all these massive problems. We actually ought to start praying as a nation rather than throwing lots of money at the problem.”

Mr Cordle said he would love the church to tell Gordon Brown to start praying about the situation.

“If the Church could actually say to the Government ‘let’s call for a national day of prayer to come before God with the problems of the nation’ that would be a massive step forward. For every individual, whatever their situation in the present time, they need to say ‘right God what do you want me to do, how do you want me to behave with my finances.”

The debate on the length and depth of the recession is complicated to predict at this stage but some economists believe it could stretch as far as 2010. Usually recessions will last for between 3-5 quarters.

Repayment mortgage is a type of mortgage in which the monthly repayments consist of repaying the capital amount borrowed as well as the accrued interest. In your statement of mortgage which you receive annually indicates the amount borrowed decreases throughout the term.

The main advantage of a repayment mortgage is that at the end of the term, you can be sure that the total amount of the debt has been repaid. Secondly, it also removes the risk of having an investment, the performance of which is dependent on the stock market. Therefore, you are less likely to suffer from negative equity as your mortgage balance will be reducing month on month.

As time moves on, the equity percentage in the property increases. However, in the early years the bulk of the mortgage repayments consist of the interest component, so not much of the capital is actually paid off for some time. Consequently, when you re-mortgage or move home you may find it easier to obtain a mortgage and you may be able to avoid paying a Mortgage Indemnity Guarantee.
There are some disadvantages in repayment mortgage method, ie. you would be unable to benefit from the stock market if it has performed well over the period of the mortgage. Therefore, there is no possibility of being able to pay off your mortgage early with such an investment windfall or receiving an additional lump sum at the end of the repayment period.

If you think of moving house after a few years, then you may have to repay your existing loan and take out a new one, as most of the repayments in the early years consist of interest on the existing balance and not a huge amount of capital will have to be repaid from the original debt.

Many people end up taking out another twenty-five year loan, especially if they are trading up to a higher value property. This will once again put them at the start of the repayment schedule, meaning that the bulk of the repayments are once again being taken up with servicing the interest bill on the mortgage debt.