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.
Will first-time buyers ever get back on the property ladder?
As we see the introduction of the infamous 125% mortgage from Nationwide, even though it is perhaps not as bad as it seems, there are concerns that first-time buyers in the UK will struggle to climb aboard the property ladder. Despite the fact that UK property prices have fallen substantially over the last 18 months there is still a significant gap between what are the average first-time buyer can...Read More
First Direct withdraws mortgage deals
First Direct has become the first of the UK's major lenders to withdraw its complete range of mortgage products. In a statement released today, the company announced it was suspending all new lending on a temporary basis. The decision has been taken following a five-fold increase in demand for its products, it is claimed, with analysts attributing the rise in applications to the competitiveness of...Read More
Student flats scam proving a disaster
While the life of a student can be one of small budgets and wafer thin expenses, an ongoing student flats scam is proving a disaster for many. Fraudsters are using the Internet to attract students to "cheap properties" and asking them to forward their bank details or send money to secure a deal for the property. However, many students have found out these properties do not actually exist and when...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
Estate agents turn gloomy on the UK market
Estate agents in the UK have turned dramatically gloomy on the UK market with the latest survey from the Royal Institute of Chartered Surveyors showing that a balance of 32% more estate agents saw a reduction in prices in August compared to those who saw arise. This is the highest reading from this particular survey since May 2009 and comes amid suggestions that UK property sellers may well need t...Read More