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.
London rents 'booming'
The number of people renting properties in prime central London locations is approaching record levels, a new survey has revealed.Knight Frank says that the annualised rental rate in the capital in the 12 months to June was 12.2 per cent.The estate agent claims that the proportion recorded in June was the highest since the fourth quarter of 1999.Quarterly growth in rents now stands at 4.2 per cent...Read More
First home 'more important than uni'
Young adults in Britain are reportedly putting off university in order to get a foothold on the property ladder.A survey reveals one in ten potential university students said they have sacrificed their studies in order to put money away to fund their first home.Lloyds TSB, which conducted today's research, says a further third want higher education tuition fees cut to help them become a homeowner....Read More
Is the buy to let property market starting to wobble?
Revelations that mortgage arrears in the buy to let sector have increased substantially over the last few months is causing significant concern amongst UK lenders. This is a sector which for many months has seemingly managed to avoid the worst of the UK recession although tellingly it appears that more and more landlords are starting to struggle.
A mixture of a soft rental market to...
Be careful of that last minute chase to save stamp duty costs
The end of the year sees the UK governments stand duty reduction come to an end with properties valued between £125,000 and £175,000 attracting a 1% stamp duty charge from 1 January 2010. Currently the UK government has exempted property purchases within this specific range in an attempt to try and inject some confidence and interest into the UK housing market.
While there is no d...
Rightmove Claims Over 1m UK Homes Are Up For Sale
In a move which will send shivers down the spines of the mortgage companies in the UK, Rightmove claim that over 1 million UK homes are currently up for sale. Indeed news that only one in fifteen homes for sale are being sold will further depress the mortgage sector and confirm fears of a long recovery period. However it is the news that over 1 million homes are on the market which will cause mo...Read More