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 prices could fall by 36% over the next two years
There has been a damning report released today with regards to the housing market in the UK and the potential for further falls over the next two years. Using instruments traded on the property derivatives market the indication appears to be a potential fall of up to 36% in house prices over the next two years. While this is some way ahead of many expectations in the marketplace it has caused some...Read More
How have house prices performed since the millennium?
Information gleaned from the influential Nationwide property survey seems to suggest that the price of a house in the UK has increased by almost £90,000 since the turn of the century! It is believed that the average property in the UK cost around £75,000 in the year 2000 and has since increased to around £162,000, even taking into account the recent downturn in property prices. This is an as...Read More
Reality in the UK housing market
Over the last few days we have seen some significant headlines from the UK property market with many analysts starting to turn more positive and liquidity returning to the sector. However, it is worth reminding ourselves that due to the substantial fall in UK house prices there are now more than 900,000 people in the UK caught in the negative equity trap. While the severity of their negative equit...Read More
House-building figures highest for nearly two decades
Homes in the UK are being constructed at the fastest rate for nearly 20 years, according to newly released figures.Statistics released by the National House-building Council (NHBC), whose warranty covers 80 per cent of all new houses in the UK, showed that 185,000 new properties were finished last year - the highest figure on record since 1989.After that year's high of 191,800 house construction d...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