Will UK property funds ever be the same again?
The recent announcement that Norwich Union has suspended redemptions of its UK property funds was a further nail in the coffin of the UK property investment sector where times are very tough. There are serious concerns that the impact of effectively blocking unit holders from the realising their property investments will have a detrimental impact in the short to medium term and possibly longer term. Many people will never have experienced such strict conditions and sudden changes to procedures overnight.
Let's not forget that many UK consumers are suffering during the ongoing economic downturn and a number had been depending upon the redemption of their property funds investments to reduce their own financial pressure. There is also great concern that by the time the redemption suspension is lifted we could see UK property prices sharply lower and even fewer buyers willing to acquire both corporate and domestic properties.
Liquidity of property investment funds has always been an issue but one which has tended to remain in the background with very few implications. The sudden emergence of a number of redemption suspensions has shocked many investors who feel aggrieved that they are locked into falling assets and unable to use their investment funds to reduce their own pressures.
Share this..
Related stories
The UK government looks set to bailout PFI companies
The UK government has depended largely upon private financial initiative schemes (PFI) in the past in order to roll out significant numbers of new schools, new motorways and similar projects. As Gordon Brown mentioned only a few weeks ago he is looking to create or save over 100,000 public sector jobs in these troubled times. However, it has become more and more apparent that the PFI schemes, on w...
Read MoreScottish executive fails to save Diageo jobs
When drinks giant Diageo announced 900 job losses as its Kilmarnock plant the Scottish executive, led by the SNP, jumped into action and instigated a very aggressive and very public campaign against the company. While there were 900 jobs at risk there are many who claim this "megaphone diplomacy" has backfired with the group having walked away from significant public funds to save the plant and ef...
Read MoreRoyal Bank of Scotland - the spin now the sin!
Less than 24 hours after the UK government announced a 90% reduction in bonuses to be paid to Royal Bank of Scotland staff we are starting to see the full picture with regards to the eventual bonus package. While the initial request for a £1 billion bonus fund was turned down and replaced by a £175 million cash alternative, there are rumours today that as much as £600 million in Royal Bank of S...
Read MoreHelp to Buy scheme extension launched
09/10/2013 The second stage of the ‘Help to Buy’ scheme has been launched three months early in the hope that the housing market will further benefit from growth in a similar way it did under the initial stage of the scheme. The scheme was originally launched with the intention of helping home buyers find a mortgage, even if they did not have a vast amount of savings. This has been achie...
Read MoreInvestors choosing premium bonds due to high interest rates
It has been suggested that a growing number of investors have been seeking to put their money into premium bonds in the past few years because of unattractive interest rates.According to Hargreaves Lansdown, premium bonds are likely to have become a popular option with many in recent years because in 2006 interest rates stood at just 4.5 per cent, making savings an unattractive option for some.Mar...
Read More