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.
Nationwide releases new house price figures
House prices fell by 0.4 per cent this month, Nationwide said today.This means that the typical property is worth 13.9 per cent less than it was in November 2007, according to the lender.Last month's survey showed a 1.3 per cent monthly decline and a 14.6 per cent annual drop - suggesting that the property slump in the UK has started to abate.However, other studies released recently suggest that b...Read More
Nationwide predicts another interest rate rise
Despite February's interest rate level not having risen, financial experts have predicted that homeowners could still see an increase very soon.Economists at Nationwide building society have forecast that the bank will increase the interest rate in order to bring it in line with house price inflation. Nationwide figures show that the average house price is has increased to £174,706 - a rise of £...Read More
What does the Dubai property collapse mean for the UK?
As we covered yesterday, the announcement that the main property developer in Dubai, and state-owned parent company, has asked for debt repayments to be suspended is a major blow for the sector. Even though the Dubai property sector has fallen substantially over the last 18 months, many were still surprised that the main developer Nakheel appears to be in so much trouble. In effect the company...Read More
Government Rate Changes Lead To Property Demolitions
While it did not receive an awful lot of coverage in the financial press it seems as though a move by the government back in April which took away rate relief on empty buildings is leading to a massive increase in demolitions. As businesses seek to cut back their tax bills as much as possible many are now looking to flatten empty buildings and offices in order to avoid what can be a substantial t...Read More
London on top of the world
Property prices for luxury homes in London exceed those of all other cities in the world, according to estate agent Knight Frank, with the price per square foot of prime properties in the capital averaging out at £2,300.Properties in Belgravia and Knightsbridge cost the most, with an average £3,000 asking price per square foot.Such figures mean that the cost of London's properties exceed those o...Read More