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.
Housebuilding sector under pressure
News that housebuilding in the UK has fallen for the first time in 12 months is a worrying sign for the industry and a worrying sign for the UK economy as a whole. A survey released today cast a very dark shadow over the sector with confirmation that orders fell in September for the fourth straight month, job losses are increasing and work rates on offer to subcontractors have been slashed of late...Read More
Approach let-to-buy 'with caution'
Let-to-buy must be "approached with caution", according to a spokesman for the Intermediary Mortgage Lenders Association (IMLA).A let-to-buy mortgage is designed to allow first time buyers to get onto the property market, by using the rental yield from their property to pay for their mortgage and get their feet on the first rung of the ladder.Peter Williams, executive director of the IMLA, said: "...Read More
Why is the UK property sector racing ahead in London?
The UK property sector would appear to have recovered in general but the London market is already back to pre-recession levels after such a short space of time. Despite the fact that the financial climate in the UK is still very much overcast it would appear that homebuyers are prepared to "bid up" for properties in and around the London area. So can this continue?
The truth is that...
Number of million pound properties triples
The number of properties selling for a million pounds or more has almost tripled in the last five years, according to research from Halifax Estate Agents.Some 6,170 homes were sold for over a million in England and Wales in the 12 months up to June 2007, compared to just 2,249 for the corresponding period five years ago - and there are now an estimated 88,000 homes with a six-figure-plus value.Lon...Read More
House prices continue to rise
The cost of buying a house in the UK is continuing it’s steady rise, at the fastest rate since 2010. Nationwide building society reported that house prices rose by 0.3pc in the month of June, and is rising at an annual rate of 1.9pc on average. Again the Funding for Lending scheme launched by the Government last year has been accredited with helping the market pick up. The scheme makes c...Read More