Confusing signals from the UK property market
Despite the fact that recent information released regarding the UK property sector would seem to indicate a downturn in business and property prices, the Council of Mortgage Lenders in the UK has confirmed a reduction in repossessions in the second quarter of 2010. A total of 9400 properties were repossessed in the three months to June 2010 which is down 400 from the previous quarter and down 2400 compared to same period last year.
As a consequence the Council of Mortgage Lenders has revised its forecast for repossessions for the full year to 39,000 against an initial forecast last year of 53,000. This also compares favourably to the total 47,700 properties which were repossessed during the whole of 2009. Again this would appear to indicate that fewer people are falling behind with their mortgage payments which would in itself indicate an improvement, or at least stability, in the UK economy.
However, this comes at a time when the public sector budget is being slashed, the economic revival appears to be flagging and UK property prices have started to downturn. Whether or not the new forecast of 39,000 repossessions in 2010 is revised, if the economy does falter in the second half of 2010, remains to be seen.
Property giants face cash calls
It is rumoured that Hammerson and British Land, two giants of the UK real estate sector, are set to ask investors for cash injections totalling £1 billion. There have been rumours for some time that the UK commercial property sector is in serious trouble with suggestions that UK banks may have to write off anything up to £200 billion over the next few years. The suggestion that Hammerson and Bri...Read More
RBS looking to offload £15 billion of property assets a year
As the long-term goal of unwinding Royal Bank of Scotland's distressed loan book continues the company has revealed plans to offload upwards of £15 billion of property assets a year for the foreseeable future. The company will also be tailing off the vast majority of property loans in the UK and Europe which will unwind the company's loan book going forward, although there are fears of more write...Read More
Housing affordability down 350% since 2006
Housing affordability is near to a record low, and has dropped by 350 per cent in the past 11 years, according to new figures from the Royal Institution of Chartered Surveyors' (Rics) accessibility index.Data from Rics shows that homes are now five times more expensive for first-time buyers than they were in 1996, and the average cost of getting on the property ladder has risen by 8.4 per cent in...Read More
Is Farmland The Next Property Boom Sector?
As the UK housing market continues to fall away there are signs that the value of UK farmland will continue to push higher and higher in the short term. Estate agent Savills has reported that the price of English farmland had increased by over 30% since December 2007, bringing a 50% gain over the last 12 months. So what is happening?
As with any investment, farmland is valued on t...
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