CEBR predicts UK property prices will rise by 4% this year
The Centre for Economics and Business Research (CEBR) recently released its view on the UK property market which would appear to be in direct conflict with a number of downbeat statements issued by other economic bodies last week. The CEBR believes that UK property prices will rise by around 4% this year and continue to increase until the end of 2014 due in essence to the short supply of properties on the market.
This is the first time we have heard any upbeat news with regards to the UK property market for some time and indeed would seem to conflict with the general opinion that the UK property sector is headed for a double dip recession. Whether or not this upbeat forecast will materialise in the short to medium term remains to be seen but thankfully there would appear to be at least a little hope on the horizon.
As we have mentioned on numerous occasions, the UK property sector is central to the UK economy due to the fact that many individuals have the bulk of their finances tied up in the sector. Any downturn in the UK property sector would obviously have a detrimental impact on the economy but on the flipside of the coin, any improvement in sentiment regarding the UK property sector could well lead to more optimism about the UK economy in the short to medium term.
More Brits buying abroad
More than a quarter of a million Brits currently own a property abroad, and one-third of the population would like to buy a home overseas, new research by Natwest claims. A third of both current and potential overseas homeowners told Natwest that they thought that owning a holiday home would make holidays more affordable, while a quarter felt it would take a lot of the stress out of arranging a br...Read More
House prices force buyers to commute
First time buyers are being forced to commute because they have been priced out of the market in the areas where they work, according to research from Abbey mortgages.The maximum journey time that new buyers want to take to their workplace is 43 minutes, but they are having to change their expectations - the study found 15 per cent said they would travel up to one hour each way, seven per cent wou...Read More
Bovis Homes back on the growth path
While we still await definitive confirmation of an upturn in UK property market, despite signs from various housebuilders that the market has turned, Bovis Homes has today announced plans to scrap its interim dividend in 2009 amid " challenging trading conditions". However, the prospects for shareholders may not be as bad as the headline indicates with the company suggesting that funds saved would...Read More
UK repossessions on the increase
A report by the Financial Services Authority (FSA) has today confirmed the dire situation for the UK property market. A total of 13,161 homes were repossessed in the third quarter of 2008 which represents a 92% increase on the corresponding period in 2007. There are serious concerns that the overall trend in repossessions is set to move sharply higher as the property market comes under more and mo...Read More
House prices "subdued" in March
House prices in the UK rose by just one per cent in March, Halifax's latest market survey has shown.The bank says that the increase in property values felt last month was the smallest for eight months.On a quarterly basis, prices were up 2.8 per cent, well behind the 4.2 per cent growth experienced in the first three months of 2006.Despite annual house price inflation rising to 11.1 per cent, Hali...Read More