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.
Buy to let yields continue to fall
In a sign of strength in the UK property market it has been revealed that the average buy to let property now commands a rent of 4.75% as of January 2010 compared to a peak of 5.1% in March 2009. Despite the fact that UK property prices have risen over the last few months, many landlords have found it difficult to push through rent increases and indeed an increase in the number of rental propertie...Read More
Glasgow shopping centre in distressed property sale
The Silverburn shopping Centre in Glasgow is up for sale in one of the most startling distressed property sales in the UK today. While we await official confirmation of the sale price and those interested in the property there are rumours that Bank of Scotland has effectively pulled the plug on the operation and decided to cut its losses. Bank of Scotland, part of the HBOS group, supplied the debt...Read More
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 ter...Read More
Gulf Investors Advised To Invest In UK Commercial Property
In a move which has surprised some in the property market, the Islamic bank Gulf Finance House (GFH) has advised clients in the Gulf to take a serious look at UK commercial property as they believe that the sector looks good value after recent falls. While the timing of the advice may be a little debateable, the level of Gulf based investment into the UK has been growing for some time.
Home sellers no longer realistic over price, NAEA says
People selling their property in the current market are generally overestimating its value, an industry expert has claimed.The president of the National Association of Estate Agents (NAEA) suggested that the situation was a "problem", as buyers were "no longer looking" at homes' asking prices.Since the onset of the credit crunch last year, house prices have dropped by over 12 per cent, figures fro...Read More