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".
More house price gloom in February
The Nationwide Building Society survey into UK house prices has revealed a further fall of 1.8% in February as lower interest rates and lower house prices have a minimal effect on the UK property market. The average UK home has fallen in value by over 17% during the last 12 months which equates to £31,000 for an average price in the region of £147,000. More alarmingly for those who acquired thei...Read More
Buy to let yields continue to fall
In a sign of strength in the UK property market it has been revealed that the average buy to let property now commands a rent of 4.75% as of January 2010 compared to a peak of 5.1% in March 2009. Despite the fact that UK property prices have risen over the last few months, many landlords have found it difficult to push through rent increases and indeed an increase in the number of rental propertie...Read More
Government Rate Changes Lead To Property Demolitions
While it did not receive an awful lot of coverage in the financial press it seems as though a move by the government back in April which took away rate relief on empty buildings is leading to a massive increase in demolitions. As businesses seek to cut back their tax bills as much as possible many are now looking to flatten empty buildings and offices in order to avoid what can be a substantial t...Read More
Is it Time To Build Your Eco House?
While the eco housing revolution has never quite taken off in the UK it seems that now may be the time to try and bag a prime plot for your dream home. Industry experts are suggesting that the recent fall in property and land prices has brought more people back into the market with prices more reachable. It also seems that more people are looking at both eco and energy efficient housing as a way...Read More
Stamp duty 'hitting property market'
Gordon Brown's increases in stamp duty over the last decade are contributing to the current shortage of properties on the residential housing market, a thinktank has claimed.The Centre for Economics and Business Research (Cebr) suggests that the lack of supply holding up British house prices despite interest rate rises and affordability constraints has in part been caused by the chancellor's stamp...Read More