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".
House price growth 'halves'
The rate of house price growth in the UK more than halved during June, according to the Royal Institute of Chartered Surveyors (Rics).Rics says that that in the last month a ratio of 10.6 per cent more chartered surveyors reported a rise than a fall in house prices, which compared to a balance of 22.5 per cent recorded in May.The professional body claims the research shows that five interest rate...Read More
House prices firm but demand starts to weaken
In a rather bizarre situation we have seen the number of potential buyers in the UK property market fall in the four weeks to May 8 while the cost of houses in the UK increased by 0.7%. It is unclear as to why the price of houses in the UK would push higher if demand is weakening although in all honesty it has been near impossible to forecast the direction of UK property market in the short term....Read More
Will UK property ever be as popular again?
At the height of the boom time for the UK property market it seemed that nobody could lose money and conversely at the bottom of the UK property market it seems that nobody can make money. Investor sentiment is very often based upon short-term trends and many investors can become blinkered with regards to the potential long-term prospects for the UK property market. So will UK property ever be bac...Read More
Persimmon sees 'balanced' property market
Recent interest rate rises have balanced out the UK's housing market, construction firm Persimmon says.The Bank of England has raised the base rate three times so far this year to its current rate of 5.5 per cent in a bid to curb upward inflationary pressures across the whole economy.With average house prices continuing to rise, albeit at a slightly slower rate recently, Persimmon says the hikes h...Read More
Wales is hot property for investors
Buy-to-let landlords who have invested in Wales will have been pleased to see massive returns on their property, as rents have increased by a massive 33 per cent over the past quarter, according to Paragon Mortgages' latest buy to let index.The average annual rent that a landlord asked for in Wales has increased by 32.7 per cent between December and March, pushing it to £11,251 on an average prop...Read More