Buy to let market running out of steam
The CML has today revealed that the UK buy to let market has rebounded strongly from post-credit crunch levels although it would appear to be running out of steam. The number of buy-to-let mortgages agreed increased by 13% in the second quarter of 2010 with around 25,000 confirmed. While these figures are welcomed by investors in the buy to let market they are just around 25% of the business levels seen prior to the credit crunch and the worldwide economic downturn.
There is no doubt that the buy to let market is "over the worst", at least in the short-term, but with many experts predicting difficult times for the UK economy and a difficult period for the property market it will do well to maintain current growth levels. Indeed even the CML believes that there are signs that the sector is easing back although how far it will fall remains to be seen. It is also worth noting that a large number of buy to let investors of years gone by have now left the market, many having been forced to sell on their properties at knockdown prices. The buy to let sector enjoyed something of an Indian summer for much of the first decade of the 2000s although whether these "good times" will return again remains to be seen.
Notes reveal ministers housing market fears
House prices are set to fall by "at best" between five per cent and ten per cent this year, according to forecasts in confidential government documents. The cabinet's expectation was revealed after Caroline Flint, the housing minister, inadvertently left her briefing notes on display after a meeting at Downing Street. Her notes, which were headed 'Caroline Flint - speaking notes, State of Housing...Read More
Quarter of Brits 'would move overseas to save'
One in four first-time buyers would move abroad to live frugally while saving for a deposit on a home in Britain, according to National Savings and Investments' (NS&I) latest survey.Young people were found to be the most mobile group with one in four willing to consider emigration, even as far as New Zealand and Australia, while more than a third of people aged 25 to 34 would consider relocating i...Read More
ITV report suggests 3 million people in the UK are in negative equity
Only yesterday it was confirmed by the Council of Mortgage Lenders that in excess of 900,000 homeowners in the UK have been caught by the negative equity trap. However, a report by ITV today suggests this figure could be as high as 3.5 million homeowners which would represent around one third of all homes in the UK. While the figure of 3.5 million is probably towards the top end of the "real situa...Read More
Negative equity spreads across the UK
Negative equity, where the value of outstanding loans is more than the value of the property on which it is based, has spread across the UK like wildfire. A report by ratings agency Fitch has confirmed that one in ten UK homeowners are currently experiencing negative equity although the company suggests this could rise to an alarming one in three if the property sector takes a further lurch downwa...Read More
Have We Seen The End Of The Property Programs On TV?
The rise and rise of such programs as Channel 5's 'How to be a property developer' have reflected the massive public support for financial advice programs where it seems very easy to make a fortune. Many people have followed these programs and invested into the property market, even though a great number were not experienced in the first place, often banking big bucks in the process. While it wa...Read More