Wood Products Prices in The UK & Holland

16-31th January 2007

Report from the UK

UK house prices to rise despite interest rate hike
UK property website Rightmove reiterated its forecast that house prices would increase 6% across the country in 2007, despite the shock increase in interest rates this month. The amount of properties up for sale is at its lowest for three years and 18% down from the level in January 2006, helping to lift average prices 0.5% so far this month, the website said. The comments from Rightmove echo that of some mortgage lenders and homebuilders who expect a general shortage of housing to more than compensate for higher interest rates.

The Bank of England moved rates up to 5.25% earlier this month and expressed concerns that inflation would accelerate. The Bank’s fears were confirmed later, when a report revealed that inflation hit 3% in December, the highest level for at least a decade. Rightmove said that increases in London helped lead a 13.5% increase in the cost of an average home in the last 12 months. The average price rose to ￡222,859 in January. In London, the average asking price of a property rose 22.4% over the past year to ￡356,192, a record level. House price rises in London are outperforming the rest of the country to such an extent that the average increase in 2006 alone in London’s top five performing boroughs now exceeds the total value of an average property for sale in England and Wales.

Abbreviations

LM       Loyale Merchant, a grade of log parcel	Cu.m         Cubic Metre
QS        Qualite Superieure	Koku         0.278 Cu.m or 120BF
CI          Choix Industriel	FFR           French Franc
CE         Choix Economique	SQ              Sawmill Quality
CS         Choix Supplimentaire	SSQ            Select Sawmill Quality
FOB      Free-on-Board	FAS            Sawnwood Grade First and
KD        Kiln Dry	Second
AD        Air Dry	WBP           Water and Boil Proof
Boule    A Log Sawn Through and Through	MR              Moisture Resistant
the boards from one log are bundled	pc         per piece
together	ea                each
BB/CC  Grade B faced and Grade C backed	MBF           1000 Board Feet
Plywood	MDF           Medium Density Fibreboard
BF        Board Foot	F.CFA         CFA Franc
Sq.Ft     Square Foot	Price has moved up or down