What does the Dubai property collapse mean for the UK?
As we covered yesterday, the announcement that the main property developer in Dubai, and state-owned parent company, has asked for debt repayments to be suspended is a major blow for the sector. Even though the Dubai property sector has fallen substantially over the last 18 months, many were still surprised that the main developer Nakheel appears to be in so much trouble.
In effect the company is part of an operation which owes in excess of $60 billion, used to fund the property boom in Dubai which has seen prices rise to the sky and then fall through the floor. This move is likely to see property companies around the world highlighted with particular emphasis on those with significant debt and those who may well be sailing close to their banking covenants.
From a sector point of view the shock of the move in Dubai is likely to have an impact on property company share prices in the short term as analysts and investors come to terms with this surprise development. This comes at a time when the UK property sector in particular is still struggling to pull free of the credit crunch induced recession which has not been assisted by the lack of liquidity in the commercial money markets.
Share this..
Related stories
Lloyds TSB finally take over HBOS
Even though the ink is still wet on the Lloyds TSB and HBOS merger agreement this brings to an end one of the most controversial and long-running takeover battles in recent UK times. What should have been a fairly swift rescue bid for HBOS has dragged on for many months and recently went to court when a group of Scottish business people decided to take action against the merger. Many management ho...
Read MoreCan we believe the figures coming from the estate agent market?
Despite the fact that mortgage liquidity in the UK is still at near record lows the National Association of Estate Agents has released information this week suggesting that each property for sale is attracting four buyers. Many people are sceptical of such upbeat figures although they are based upon buyers registering their interest with local estate agents. So what do these figures tell us?
...
Will the UK budget affect everybody?
There is speculation and counter speculation regarding the UK budget, potential tax increases and potential cutbacks in public sector spending. However, one thing is for certain, each and every person and each and every business in the UK will feel the pain, although to a differing extent, due in the main to massive public sector spending cuts. The government is looking to introduce a number of...
Read MoreBuy-to-let mortgage lending up in first Quarter
The amount of mortgages approved on a buy-to-let basis was up by 13.5pc in the first quarter of 2013, compared to the same period in 2012, according to the council of Mortgage Lenders (CML). Buy-to-let mortgages now account for 13.4pc of all outstanding mortgages, a rise of 0.5pc from the same period a year ago. Landlords and investors are prospering from cheap mortgage deals brought about by G...
Read MoreDo consolidation loans work?
As the slowdown in the UK continues to gather pace we will shortly be seeing more and more people looking to refinance their debts in order to keep their heads above water. While up until now the banks have been a little reticent to authorise such moves on a grand scale we should start to see some movement as the money markets start to return to something like normality after the credit freeze....
Read More