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.
Crunch hitting first time buyers
First time buyers are finding it increasingly hard to get on the housing ladder, one of the UK's largest homebuilders has warned. Latterly, the credit crunch has forced banks to tighten their lending criteria, meaning that it is currently much harder to secure home loans than before. First time buyers are the group most likely to suffer, with lenders now typically asking for deposits of 25 per cen...Read More
Co-op releases first-time buyer research
First-time buyers plan to save an average of £20,000 before purchasing their home, the Co-operative Bank has revealed.New research, undertaken by the bank in collaboration with Places for People, also showed that the typical buyer is planning to wait two years before getting on the property ladder, the Press Association reports.The group were found to be conservative on matters of property, with...Read More
Are UK banks controlling the UK property sector?
Amid signs that the demand for UK property is bubbling below the surface, there is growing concern that UK banks are holding back the UK property sector. Despite the fact that there are now around 66% more mortgage arrangements available than at the start of the year, these financial arrangements are not within the grasp of many first-time buyers. So what is happening in the UK mortgage market?...Read More
Homeowners 'forced into property sales'
Many properties in the UK are on the market because their owners cannot afford to pay their mortgages, a new survey of estate agents has revealed.The National Association of Estate Agents (NAEA) carried out the study for the Times and discovered that more than half of the agents polled said that at least one in five of the homes on their books were put up for sale because of difficulties over repa...Read More
Are Brokers Set To Bail Out UK Housebuilders?
While the likes of Barratt Developments has been at the centre of much speculation about their financial position, the sector as a whole has seen a number of doom and gloom forecasts for the months ahead. While Barratt’s came forward to dismiss the rumours of a financial crisis, the company did not dismiss out of hand the fact that funding may be required to continue trading. So what is go...Read More