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.
NI houses lead price growth
House prices in Northern Ireland rose by 14.6 per cent in the last three months, the latest housing monitor shows, contributing to annual inflation of 9.5 per cent in Britain.Building society Nationwide says that the growth experienced in the province is the fastest since its own records began in 1973.Nationwide's last quarterly report showed that annual house price inflation stood at 9.3 per cent...Read More
House prices firm but demand starts to weaken
In a rather bizarre situation we have seen the number of potential buyers in the UK property market fall in the four weeks to May 8 while the cost of houses in the UK increased by 0.7%. It is unclear as to why the price of houses in the UK would push higher if demand is weakening although in all honesty it has been near impossible to forecast the direction of UK property market in the short term....Read More
Prospects for the UK property sector
There was much attention focused on the UK property sector yesterday with hopes that the government would step forward with significant assistance and significant financial help for this vital area of the UK economy. As it happens Alistair Darling confirmed that the stamp duty holiday on properties with a value of under £175,000 was to be extended until the end of 2009 along with significant inve...Read More
US existing home sales fall to 15 year low
In a further reflection of difficulties currently being experienced by the US economy, it was revealed today that sales of existing properties fell to a 15 year low in the US. There was an unprecedented fall in the annual rate of existing property sales from June 2009 to June 2010 which equates to 27.2%! This is a dramatic fall by any standards and concerns regarding the shape of the US economy...Read More
'Borrowers will need larger deposits in 2008'
Financial institutions are more likely to insist on larger deposits from potential buyers this year, it has been claimed. According to the Royal Institution of Chartered Surveyors (Rics), the slowdown in the housing market is set to continue during the coming months. This, coupled with concerns over the credit crunch, will lead banks and building societies to tighten lending criteria, and insist o...Read More