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.
Homes account for sixty per cent of UK wealth
Sixty per cent of wealth in the UK is tied up in our homes, according to new figures from the Office for National Statistics (ONS).These new figures show just how dominant the housing market has become over recent years, accounting for around £3.9 trillion of the UK's estimated £6.5 trillion wealth, up ten per cent on the previous year. The ONS figures show that that measurable wealth is worth o...Read More
Stamp duty holiday approaches conclusion in property market
When the UK government removed the 1% stamp duty on the purchase of homes with a value between £125,000 and £175,000, to inject interest into the marketplace, this was well received by property investors. However, the scheme is set to end on New Year's Eve 2009 with 1% stamp duty to be charged on properties with a value of over £125,000. As a consequence many estate agents are suggesting their...Read More
Is Minerva now in play?
A 50p a share cash offer for UK property company Minerva has certainly put the cat amongst the pigeons in the UK property sector. Only 16 months ago the company was flying high attempting to fight off a £1.60 share cash bid which ultimately fell through. However, since then the company has struggled and the shares have been as low as six pence during this very difficult economic period in the UK....Read More
First-time buyers struggling
First-time buyers in the UK property market are struggling as banks demand larger and larger deposits despite the fact we saw an increase in competition in the sector just a few weeks ago. The average deposit required to obtain a mortgage is now 25% which does not compare favourably to the average figure of 10% prior to the credit crunch and economic downturn. The Council of Mortgage Lenders also...Read More
Will UK property ever be as popular again?
At the height of the boom time for the UK property market it seemed that nobody could lose money and conversely at the bottom of the UK property market it seems that nobody can make money. Investor sentiment is very often based upon short-term trends and many investors can become blinkered with regards to the potential long-term prospects for the UK property market. So will UK property ever be bac...Read More