Is there oversupply in the UK property market?
A number of property surveys in relation to the UK property market have highlighted the fact that the UK market is moving into an "oversupply" situation. When you also take into account that many buyers are now sitting on the sidelines waiting for prices to fall further, the situation could become worse before it gets better. So why have more people decided to sell their property?
There is no doubt that the hard-hitting press headlines regarding the UK economy and a potential double dip recession have upset many people. Just when the vast majority of households in the UK began to see light at the end of the tunnel the UK government stepped in with significant budget cuts and tax increases in the short-term. As a consequence, and bearing in mind that the global economy is beginning to struggle, more people are now looking to sell their property at a lower price than they may have achieved just weeks ago, with buyers now very much in the ascendancy.
Liquidity issues within the UK mortgage market are also causing concern with many first-time buyers effectively priced out of the market due to the need for a significant deposit. Until this situation changes we are likely to see further downward pressure with more and more buyers holding back or pushing for "unrealistic prices".
UK House prices rise in April
The average price of a house in the UK rose by 1.1pc in April, compared to March, but activity in the housing market remains low, according to Halifax. This means that house prices rose for the third consecutive month, and are now 2pc higher than at the start of the year. Despite these strengthening results, a fall in the amount of mortgage approvals in 2013 has meant that the activity around t...Read More
UK government to incentivise house builders
The UK government has announced a New Homes Bonus scheme which will be offered to all English councils who participate in new house building projects to alleviate a shortage of affordable property in the UK. Despite the fact there are 4.5 million people on the English Council housing list only 120,000 new properties were built last year. So how will this incentive scheme work? In simple terms t...Read More
Government acts on empty property tax
Over the last few months there has been a rather strange phenomenon in the UK property market whereby those with empty properties have still been forced to pay business tax at the full rate. In many circumstances businesses have been forced to demolish buildings to avoid the tax which was crippling many and causing serious cash flow problems. However, the government has today announced a one-year...Read More
Average UK property now worth £155,885
The Land Registry has today confirmed that UK house prices rose by 1.7% last month, the second consecutive month of increases, which now places a value of around £155,885 on the average UK property. The rebound of 1.7% in July is the largest single monthly rise over the last five years and would appear to bode well for the future of the UK property sector. When you also consider the vast array of...Read More
The buy to let market springs to life
Paragon, one of the major buy to let mortgage providers in the UK, has confirmed the signing of a £200 million funding arrangement with Macquarie Bank which will see the company become more prominent in the buy to let mortgage market again. Despite the fact that Paragon has always had a long-term outlook on debt and mortgage funding it was forced to effectively going to "hibernation" during the U...Read More