Mixed signals in the UK property sector
While there has been significant discussion regarding the performance of the UK property sector we appear to be seeing the start of a recovery in the UK mortgage sector. New mortgage approvals rose by 4% in March which when taken with the increase in February starts to build a little momentum for the mortgage industry and the wider property sector.
While nobody is suggesting that the UK property market will shoot ahead to former levels, there are many people who now believe we have seen the worst in the UK mortgage sector. When you consider the significant reduction in UK base rates over the last few months, a bottoming out of the UK property market and a return of confidence (to some extent, before the swine flu outbreak) it is easy to see why many believe the worst is over. However, as we mentioned yesterday on some of our posts, the outbreak of swine flu has the potential to cut short any recovery in the UK economy at least in the short to medium term.
Those who underestimate the potential impact a pandemic would have around the world, and in particular on the worldwide economy, may well be in for a shock. While it is not inevitable we will see a pandemic, it seems highly likely with each passing day that infection rates will increase substantially in the short to medium term.
Share this..
Related stories
When will mortgage approvals stop falling?
While nobody expect August mortgage figures to show any improvement there were few who suggested that we would see approvals sink as low as 21,086 for the month which is less than two thirds of the average for the last 6 months. The net mortgage figure for the month has also fallen to some £2.1 billion which is well down on the figure of £4.8 billion for July and the £4.7 billion average for t...
Read MoreHow will the government push through tax increases?
As the UK economy continues to fall and unemployment continues to rise we seem to be approaching a nightmare scenario where the government will need to increase tax rates to replenish the UK budget. While the authorities are at pains to avoid the subject of tax increases there is no doubt that substantial rises will be needed in the medium term to address what is a sickeningly high UK national deb...
Read MoreCredit Card Companies Looking At Limit Freeze
The recent Egg debacle seems to have been the start of a series of moves in the credit card industry aimed at freezing increases in credit card limits, even for those that have impeccable records and pay off their balance at the end of each month.
A recent report highlighted the plight of a businessman with a salary of more than £100,000 who has a Morgan Stanley Credit Card. It...
Are high street discounts causing more trouble than they are worth?
Figures from the world of retail are showing substantial reductions in the value of goods sold as the discount trend continues to sweep across the UK. We have seen a vast array of companies offering 20% discount days, 50% off chosen items and an array of other promotions and offers to tempt consumers but are these offers really worth it or are they causing more trouble for the sector?
Read More
Bankruptcy, IVAs and trust deeds
As the debt situation amongst UK consumer continues to worsen at an alarming pace, more and more people are being forced to consider bankruptcy, IVAs and trust deeds. Many people forget that these particular debt instruments are there for their protection and those who are in serious debt should take advice about their next step. As more and more people in the UK finally come to their senses and t...
Read More