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.
Steepest fall in house prices for 18 years
It was reported today that house prices are falling by more than 10% a year - a decline last seen 18 years ago in 1990 during the depths of the last recession. These figures strongly support the view that Britain is set for a recession on the scale of that seen at the beginning of the nineties, and leading City forecaster, Capital Economics, has been led to predict a full-scale recession for Brita...Read More
Housing market constricts
Britain's property scene remains "very tight" according to the latest house price index.Building society Halifax says that house prices rose 1.8 per cent in February, leaving annual inflation at 9.9 per cent unchanged for the third straight month.Last month's figures mean quarterly growth of 2.3 per cent has been experienced in the UK, which compares to 4.7 per cent in the previous three months.An...Read More
Will the UK government reintroduced the stamp duty break?
Over the last two years there have been a number of highly successful and very expensive fiscal programs to induce growth into the UK economy. One such program was the stamp duty break which ended in December 2009 and which had a massive impact upon the UK property market. Such was the impact that many property purchases were rushed through in December to take advantage of the reduced costs and Ja...Read More
House prices 'fall 1.6 per cent'
House prices fell by 1.6 per cent in February, new government figures reveal.The new report, from the Department of Communities and Local Government, also showed that the annual rate of property inflation was down to 6.7 per cent.This forms a 1.3 per cent drop from January's figure - and is indicative of the difficulties buyers are having with securing a mortgage in the credit crunch.Overall, the...Read More
HSBC looking to cash in property assets
Last year's repurchase of its Canary Wharf headquarters saw HSBC bank profits of around £300 million after originally selling the property for £1.1 billion in a leaseback agreement in 2007. It is rumoured that HSBC is looking at selling a portfolio of property assets held by the group with the intention of raising around £2.5 billion to assist with the funding of the business. The bulk of the t...Read More