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 homeowners pulled into negative equity trap
A review of the UK property market may look promising for the short to medium term but for those who acquired properties back in the early 2000s the doom and gloom will go on. A report issued today claims that those who acquired property in the UK just prior to the 2007 peak in the market will remain in negative equity until at least 2014 with many struggling to cope with increases in energy bills...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
Bank of England estimates 11% of UK homeowners in negative equity
While this may be a headline grabbing report from the Bank of England, which has estimated that up to 11% of UK homeowners may potentially be in negative equity, in all honesty it is not unexpected. The report suggests that between 7% and 11% of UK homeowners are in serious trouble with their mortgages, a figure which equates to around 1.1 million homes across the UK.
The major conc...
House prices fell in February
House prices across the UK fell by 0.1 per cent in February, according to government figures.Statistics from the Department for Communities and Local Government (DCLG) show that the average UK house price fell from £205,399 in January to £205,102 a month later.Despite the slip the year-on-year rate of property value growth accelerated to 12.1 per cent, up from 10.9 per cent in January, however.T...Read More
Is the long-term growth trend in UK property still in place?
Despite the fact that UK property market has been a volatile over the last three years, and indeed according to many is on the verge of a further downward spiral, the truth is that in the longer term the UK property market is likely to remain buoyant and in demand. When you take into account the ever-growing population of the UK and the reluctance of many local authorities to build further council...Read More