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.
Are we seeing a switch to rental arrangements?
As the UK property market remains volatile with various forecasts suggesting an increase over the next four years and others suggesting a potential fall of 25%, it would appear that more and more people are now looking towards the rental market. Landlords in the UK are reporting that not only is demand remaining fairly steady but in fact 35% have seen an increase in demand over the last six months...Read More
Is employment the key to a recovery in the UK property market?
As the UK property market begins to show signs of a slowdown in recovery, more people believe that the recovery process will be very closely linked to the employment market in the short to medium term. This week we saw the Nationwide Building Society suggesting that the UK property market was feeling the pressure and the rate of recovery over the last few months has begun to slow. It is inevita...Read More
Barratt Developments has no plans for fund-raising exercise
In a move which surprised many investors, Barratt Developments, the UK housebuilder, has today revealed very difficult trading conditions in the UK property sector and debts of £1.4 billion. While a number of rivals have taken advantage of the recent about turn in confidence to raise significant funds to pay down their debts, Barratt Developments apparently has no plan to take such action.
Post Office reveals Mortgage Plans
The Post Office has unveiled plans to post mortgage specialists across its branches in a bid to become a top 10 lender. A pilot scheme will initially see mortgage specialists available to customers in Solihull, Birmingham, Walsall, Luton and Norwich; within the larger branches of the Post Offices’ network. The Post Office is hoping that the scheme will lead to an amount of specialists within...Read More
Are first-time buyers deserting the UK property market?
Figures released by the National Association of Estate Agents show there has been a significant reduction in the number of first-time buyers involved in the UK property market over the last six months. Just six months ago, 43% of all registered purchases were on behalf of those looking for their first home while last month this figure fell to just 19%. The figure of 19% matches the record low reac...Read More