Home price spirals up

Jan 18 2005 By Karen Mclauchlan Evening Gazette

Just how high can they go? I'm talking about house prices. This week a report from property website rightmove.co.uk showed prices in the North were still on the up - climbing 3.3pc during January.

While the national figure slumped 0.1pc in recent weeks, the North-east is still seeing property values edge higher.

Although good news for those of us already on the ladder, it's more grim reading for those trying to move from renting to home ownership.

The report puts the average house price in the North at £145,330.

But to fund this a single buyer would need an income approaching £40,000 to borrow that amount - which would also mean stumping up monthly mortgage payments of more than £900.

Shovelling any extra cash we may have left over each month into extra payments is one way of getting rid of the mortgage as quick as possible.

But at the same time we're being urged to save as fast as we can, put money away for the future and pump up our pension funds.

Thousands of Tees Valley workers are expected to take part in a day of action next month in protest at Government plans to change their pensions.

Rallies, protest meetings, lobbying of MPs and other events will be held across the UK on February 18 as a sign of growing anger over the pensions crisis.

The day of action was agreed by leaders of several public sector unions who expressed growing concern at a series of changes being planned to public sector pensions.

For example the NHS pension scheme is set to see its retirement age rise from 60 to 65.

Most of us only have so much money.

So how do you know what to do for the best?

You can't afford to put money into a pension because it takes all your spare cash to pay for a mortgage and keep a roof over your head.

By the time you reach 60 - or whatever the retirement age is set to rise to over the coming years - you might own your own home, but you may not have enough money coming in each month to actually live in it.