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.
Why is the UK property sector so important to the economy?
Over the last few years it has become more and more apparent that the UK property market is effectively the tail that wags the dog of the UK economy. Every economic bailout, every fiscal policy and every government initiative aimed at the consumer market would appear to have the property sector in mind. The truth is that the vast majority of individual wealth in the UK is tied up in the UK propert...Read More
Property 'still a good investment'
Property is still a good investment, despite a market slowdown, a spokesperson for the property investment company Inside Track has said.In October, the International Monetary Fund warned that the UK was in danger of experiencing a housing market crash similar to that seen in the US, although the latest Nationwide house price index indicates that October saw a 1.1 per cent monthly rise in house pr...Read More
Persimmon sees 'balanced' property market
Recent interest rate rises have balanced out the UK's housing market, construction firm Persimmon says.The Bank of England has raised the base rate three times so far this year to its current rate of 5.5 per cent in a bid to curb upward inflationary pressures across the whole economy.With average house prices continuing to rise, albeit at a slightly slower rate recently, Persimmon says the hikes h...Read More
UK home repossessions climb yet higher
As the number of homes repossessed in the UK continues to increase, the Council of Mortgage Lenders (CML) today revealed that 12,800 homes were repossessed in the first three months of 2009. While this was an increase of 23% on the previous quarter the like-for-like increase on the same period last year is a massive 50% as the UK property market continues to struggle.
Robert Bonnier - He came, he saw, he lost the lot!
While Robert Bonnier is perhaps better known for building up the Scoot empire during the dotcom boom and making literally millions for himself, he has a track record of ups and down which few investors would want!
Over the years, as well as the Scoot investment, he has been very active in an array of dotcom stocks, increasing his portfolio substantially with the boom seemingly set t...