House prices are set to fall over coming months experts warned yesterday after official figures showed approvals

House prices are set to fall over coming months, experts warned yesterday, after official figures showed approvals for new mortgage loans falling at their fastest rate on record.
The drop, which came as retailers reported their worst trading month for more than a year, will be seen as fresh evidence that rises in interest rates are starting to bite.The number of mortgage approvals dropped by more than 14 per cent in July to 97,000, the Bank of England said. “House prices might well fall during the coming months.”Nationwide, the UK’s largest building society, will today publish the first estimate of rises – or falls – in house prices over August. “It is becoming more difficult to describe the slowdown as merely tentative,” George Buckley, at Deutsche Bank, said. The fall of 15,000 was the largest since at least 1993.One analyst said separate figures suggested the last time there was a larger fall was April 1990, as house prices were crashing. A spokesman for NGT said all rights, including pensions and pension deficits, would be transferred to the new companies.Fraser McLaren, a utilities analyst at ING, said: “We believe that there is still fundamental value in National Grid and that the shares have further to run in the short term.”.

Although there are no benefits to customers on day one, in 10 years’ time you will look back and say ‘yes, this was a good deal’.”Ofgem has wanted separate ownership of gas distribution in the UK for some time. It will set its pricing regime with reference to the most efficient operator.Unions reacted angrily to the proposed dismantling of distribution network. The GMB said that if safeguards about job security, pay and pensions were not given, it would consider strike action. Ian Marchant, SSE’s chief executive, said: “We think we can achieve better savings than NGT. We can still stop the sales going ahead if we feel we can’t adequately protect customers’ interests.”NGT said it would sell its gas pipeline networks in the north of England, Wales and the West, Scotland and the south of England. It will keep the gas distribution businesses in the North-west, West Midlands and east of England which it believes will make it the industries most efficient operator.The north of England network is being bought by Cheung Kong Infrastructure and United Utilities for £1.4bn, while the Wales and the West is being bought by a consortium led by Macquarie European Infrastructure fund for £1.2bn.The distribution networks for the South and Scotland are being bought by a group led by Scottish and Southern Energy for £3.2bn.

A spokesman said: “The evidence is that there is potential for customers to benefit from the proposed sales. We are going through the arrangements with a fine tooth comb … A spokesman said: “We want to make sure whatever the difference is between the two figures it has no detrimental consequences for consumers.”Ofgem warned that it could still stop the sales if it found customers’ interests were not be best served by the proposals. Britain’s gas distribution monopoly was broken up yesterday when National Grid Transco (NGT) announced the sale of four regional networks for £5.8bn, delivering £2bn to shareholders but prompting an immediate backlash from consumer groups and unions. But a door to their holding room was ajar as they were told the news, and one could see the looks of defeat as they shuffled back out to the prison vehicles, a young soldier clapping his hands to speed them up.Mr Mico, their defence lawyer, said: “All the accused apart from Mr du Toit have told me they were tortured.” Belinda du Toit, who says her drawn, grey-bearded husband was once the same, ample shape as her, looked on wondering when she would see him again..