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.
TUC calls for more social housing
Young workers will not be able to live in their own homes unless the government authorises more social housing construction, the Trades Union Congress (TUC) believes.The government currently plans on earmarking spending for 30,000 social housing units for rent every year over the 2008-11 period as part of its efforts to balance out the supply side of the demand-heavy UK residential housing market....Read More
CML uncertain over Hips rollout
Britain's property market is likely to be distorted by the introduction of home information packs (Hips) in the next few months, the Council of Mortgage Lenders (CML) has suggested.Hips, due to be rolled out on June 1st, are an attempt to make the homebuying process easier by forcing sellers to provide information about each property that goes on the market.The CML's monthly market commentary argu...Read More
Public still holding out against Hips
Nearly half of all homebuyers in the UK say that they would distrust the contents of a Home Information Pack (Hip), according to research from Saga Home Insurance.As many as 47 per cent of property investors say that they are still opposed to the introduction of Hips, which are due to become compulsory in August for sellers who own homes with more than 3 bedrooms.Perhaps these findings are not sur...Read More
London office space set for boom year
Property specialists Knight Frank have today issued a report suggesting that the London office market is set for a boom 2010 due in the main to supply difficulties. It is forecast that the value of office space in London could increase by up to 43% with rents set to rise by 19%. These are exceptional figures but then again the London office market is an exceptional market! As you would expect f...Read More
Scottish property market in short-term bounce
The Scottish property market produced a very surprising scenario this week with news from the Council of Mortgage Lenders that mortgages agreements for first-time property buyers increased by 18% to 4,700 in the second quarter of 2010. The total of these mortgage arrangements was £419 million which was again a significant increase of 27% against the first quarter of 2010. The situation for tho...Read More