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 squeezed higher
House prices in the UK increased by 1.4% in November due mainly to a lack of homes on the market and rising demand which has squeezed prices upwards. According to Halifax the average house in the UK now costs £167,664 which is a significant rise from the £154,490 the market fell to in April 2009. While house prices are still 1.6% lower than they were 12 months ago there are signs that perhaps th...Read More
UK Homeowners Feeling Home Alone
A survey by Gocompare.com has shown that more than 3.5 million UK homeowners feel trapped in their own homes with the vast majority unable or unwilling to consider home improvements or moving location. It seems that the economic turmoil sweeping through the UK is starting to affect the thinking and attitude of home owners, something which could be a bad sign for the housing market.
More house price gloom in February
The Nationwide Building Society survey into UK house prices has revealed a further fall of 1.8% in February as lower interest rates and lower house prices have a minimal effect on the UK property market. The average UK home has fallen in value by over 17% during the last 12 months which equates to £31,000 for an average price in the region of £147,000. More alarmingly for those who acquired thei...Read More
False boost to the UK property market revealed
It has been revealed that the number of first-time buyers in the UK hit a two year high last December amid the impending repeal of the stamp duty concession which gave buyers the chance to save up to £1,750 on a purchase. Lenders have revealed that nearly 25,000 mortgages were approved for first-time buyers in December 2009 which was 26% up on November. While these figures may be slightly boosted...Read More
Barratt Developments Shares Under Pressure
The bloodbath of the housing market continued when Barratt Developments was forced to deny rumours that it was in desperate need of funding to stay afloat. While the denial was well received by the market, after the shares had fallen by over 40%, the company refused to rule out a funding request in the short term. Some analysts believe that the group is suffering from debts which are said to be...Read More