Is the UK turning into a rental economy?
Despite the fact that the first choice for many in the UK property market is to buy a property for the future, there are now signs that more and more people are looking to rent in the short to medium term. The Chartered Institute of Housing has today issued a report suggesting that those on incomes between £12,000 and £25,000 are stuck in between being eligible for social housing and been able to afford their own property.
In what has the potential to become a self-fulfilling prophecy, the fewer people who can afford to acquire their own property the more pressure this will place on the rental market and the more properties will come under the "buy to let" banner. This is despite the fact that many buy-to-let participants have fallen by the wayside after the credit crunch and the worldwide recession. However, there is also the UK phenomenon of a housing shortage which has been ongoing for decades and many people believe is one of the reasons why UK property is so expensive.
Despite the fact that the UK government recently announced a number of incentives for local authorities to build affordable housing this will take some time to kick in and more and more people will be forced to look at renting property before acquiring their own property in years to come.
Are first time buyers returning to the UK property market?
While yesterday's figures from the Council of Mortgage Lenders (CML) appeared to show an increase in approved mortgages from March there was little indication of a significant increase in first-time buyer activity. However, today we have seen more details revealed with confirmation that first-time buyers in March 2009 accounted for over 40% of mortgage approvals which is the highest proportion sin...Read More
Taylor Wimpy see signs of improvement in housing market
UK housing giant Taylor Wimpy has announced an improvement in the UK housing market after a very difficult period just prior to the election. It is well-known that sales in the weeks prior to the last general election fell although it would look as though interest has improved significantly since the new government moved into office. As a consequence, the company is likely to announce like for lik...Read More
UK property market should escape double dip recession
The UK property market is forecast to increase by around 3.5% this year and 1.9% in 2011 despite the fact that many analysts appear to be concerned about the UK economy. As a consequence, it is highly likely that the UK property sector will avoid a double dip recession although there is possible scope for a further small downgrade of forecast growth next year. Despite the fact that many housing...Read More
London office space set for boom year
Property specialists Knight Frank have today issued a report suggesting that the London office market is set for a boom 2010 due in the main to supply difficulties. It is forecast that the value of office space in London could increase by up to 43% with rents set to rise by 19%. These are exceptional figures but then again the London office market is an exceptional market! As you would expect f...Read More
Equities recommended over property
Equities are superior to property as a long-term investment, according to a new study.A report from Skandia revealed that £30,000 invested in 1983 in UK shares would be worth upwards of £545,000 today.However, a house bought at the same time 25 years ago, when the average price was £30,000, would now only be worth £174,000.This put the growth rate of shares at 1718 per cent, compared to just 4...Read More