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".
30-somethings helped onto property ladder
A governmental scheme called Expanded Market HomeBuy, which was launched five months ago, has already achieved 236 completed sales. The programme was designed to help people buy low-cost homes, and is principally targeted at 30 to 34-year olds, whom the government has prioritised in its bid to deliver at least 100,000 new affordable property ownerships by 2010. Julie Pearce, from the Department fo...Read More
UK repossessions on the increase
A report by the Financial Services Authority (FSA) has today confirmed the dire situation for the UK property market. A total of 13,161 homes were repossessed in the third quarter of 2008 which represents a 92% increase on the corresponding period in 2007. There are serious concerns that the overall trend in repossessions is set to move sharply higher as the property market comes under more and mo...Read More
More houses being built
15/05/2014 There has been a drastic increase in the number of houses that have started being built in the UK, new government figures have revealed. In comparison with April 2013, when the ‘Help to Buy’ scheme first started, there has been a 31% increase in the number of new houses that have started the building process. However, the number of houses that have been completed has only i...Read More
RBS looking to offload £15 billion of property assets a year
As the long-term goal of unwinding Royal Bank of Scotland's distressed loan book continues the company has revealed plans to offload upwards of £15 billion of property assets a year for the foreseeable future. The company will also be tailing off the vast majority of property loans in the UK and Europe which will unwind the company's loan book going forward, although there are fears of more write...Read More
A new era with no HIPs
As of midnight last night the UK government has scrapped Home Information Packs, otherwise known as HIPs, to the joy of estate agents around the country. It was also revealed that since the introduction of the information packs in December 2007 around £1 billion being "wasted" on what many believe were pointless and ultimately unhelpful information packs. When you consider the amount of money...Read More