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.
Standard And Poors Sees Problem Of Negative Equity Increasing
When the leading credit ratings agency, Standard and Poors, suggest that UK house prices still have some way to fall it really is time to sit up and listen. Standard and Poors suggest that the UK market still has a further 17% to fall before it can start to rebuild again, a figure which will see 1 in 7 home owners move into negative equity - a figure of 1.7 million home owners in total!
Land Securities reports improvement
Land Securities, the U.K.'s largest real estate investment trust, has today announced figures which would indicate that the UK property sector is starting to recover. Net income during the six months to September 30 reached £11.9 million which compares to a loss of £1.73 billion during the corresponding period last year. This is a major improvement although the net asset value of the company's p...Read More
Rent price inflation halts, as more people opt to buy
The increase in the number of people buying property in the UK, especially first-time buyers, has meant that the cost of renting has stopped rising as aggressively. This is according to a survey commissioned by LSL Property Services, which revealed that the average monthly bill in England and Wales is unchanged since May, and stands at £737. However the cost of renting has increased by 2.6pc...Read More
Shopping Centre Landlords Are Struggling
Over the last decade there can be few investments which have given the same returns as shopping centres as well as a level of security which few could ever dream of. However, the economic turmoil in the UK is spreading to the high street, with a slump in June sales, and many shopping centre landlords are beginning to feel the heat.
As more and more retailers struggle, the amount of...
Barratt Developments sees no short-term recovery
UK house builder Barratt developments has come out to confirm there are no signs of a short term recovery in the UK housing market. Despite seeing a significant increase in visitor numbers and sales rates, the group has had to give away substantial profit margin in the shape of incentives and promotions to attract any interest at all. There is concern that these reduced profit margins will put fur...Read More