Investors Flee Property Markets
For many years the UK property investment community has been very buoyant with a growing exposure to many areas of the world. However, as the credit crunch continues to hit home we are seeing more and more UK investors move out of emerging property markets because of financing issues. The sector has also seen a substantial fall in property prices as the more speculative end of the market comes under renewed pressure.
While normally in current conditions you would see a flight to quality, many investors are even refraining from entering the more traditional markets – with many actually reducing their exposure where possible. There is unlikely to be a marked change in this situation in the short to medium term as UK investors grow more concerned about the immediate outlook for property.
The buy to let sector is one area of the property sector which has performed relatively well of late but there are even concerns about this area of the market. As the economy comes under renewed pressure some tenants may soon struggle to cover their month rental obligations which will in turn put many property investors under pressure. Many buy to let empires rely on the income from earlier properties to cover later additions, with the potential for a knock on affect if tenants default on rental payments.
Share this..
Related stories
Gordon Brown hails NHS constitution as momentous day
Gordon Brown has today signed the first constitution for the NHS which effectively ends an era of "doctor knows best". The legally binding document will give patients a number of rights and crystallise the responsibilities which NHS staff and doctors have with regard to patient care. The new constitution is set to last 10 years and is being hailed as the future of the NHS and a momentous day in it...
Read MoreHedge fund investors share spoils from Dana Petroleum takeover
It is estimated that hedge fund investors will today be sharing out an estimated £80 million profit, after the £1.7 billion takeover of oil group Dana Petroleum. It is believed that arbitrage investors, i.e. hedge fund investors, committed around £450 million to buy shares in the company after the announcement the group was in takeover talks. In what is becoming something of a self fulfilling p...
Read MoreUK inflation hits 3.5% in January
The rate of inflation in the UK increased from 2.9% in December 2009 to 3.5% in January 2010 with the increase in VAT and higher petrol prices at the heart of rise. This will prompt a letter from the Bank of England to the Chancellor of the Exchequer explaining why the rate is well above the UK government's target rate of 2%. While the increase was forecast by many analysts it does give the Bank o...
Read MoreTesco hails 'green' shoppers
Around 22 million Britons are "going green" due to rising food and fuel prices, by cutting down on waste.According to new figures from Tesco, environmental activity is to increase by 50 per cent in the UK - as people cut their carbon footprints by recycling more and using their cars less.The firm also found that 80 per cent of Britons count themselves as "above average" in helping to protect the e...
Read MoreUK mortgages rates increase further
Many people cannot understand how the UK mortgage sector continues to push rates higher and higher despite the fact that interbank rates and base rates have shown no signs of increasing. The announcement that the rate on a mortgage tracker with a 25% deposit has increased from 3.86% in April to 3.99% in May would appear to be nothing more than an increase in profit margins for the sector.
<...