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".
Students splash more cash on rent
Average rent rates for students in the UK have risen by seven per cent compared to last year, according to a new report by Accommodation for Students.Social housing website 24dash published the report findings showing that an average UK student would pay £60 per week for their digs in 2007, which is four pounds more than 2005. Yet this figure does not reflect the experience of all students, as re...Read More
FSA set to take over regulation of sale and rent back agreements
As the UK recession continues unabated more and more homeowners, especially those of an older age, have been forced to consider sale and rent back agreements on their homes. The fact that the schemes often ensure that the properties are acquired at a sub-market price in order for the tenant to remain in the property, often until their death, has caught the attention of the regulators. This is an i...Read More
Why are house buyers still sitting on the sidelines?
Over the last few months we have seen a major deterioration in the UK property market with prices falling month by month and many desperate sellers willing to knock thousands off their asking price. However, surprisingly we have seen very few bargain hunters step forward which is something of a major concern for those in the sector.
There appear to be a number of reasons for the ina...
The forecast for UK house prices is very depressing
While the National Institute of Economic Research has today issued a report regarding the UK property sector, with a forecast that house prices will fall by 8% in real terms by 2015, this is not the worst forecast currently in the marketplace! A report by Capital Economics today forecasts that the UK property market could fall by up to 25% over the next two years wiping off almost £42,000 from...Read More
ITV report suggests 3 million people in the UK are in negative equity
Only yesterday it was confirmed by the Council of Mortgage Lenders that in excess of 900,000 homeowners in the UK have been caught by the negative equity trap. However, a report by ITV today suggests this figure could be as high as 3.5 million homeowners which would represent around one third of all homes in the UK. While the figure of 3.5 million is probably towards the top end of the "real situa...Read More