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.
Property company Minerva in trouble
It has been revealed that UK property company Minerva has fallen into "negative equity" in a reflection of what is still a very difficult UK property market. The current share price is just over 30p although the net asset value of the company has fallen from a positive 187.7p last year to a rarely seen liability of 28.8p per share as at 30 June. So what does the future hold for Minerva?
Housing affordability down 350% since 2006
Housing affordability is near to a record low, and has dropped by 350 per cent in the past 11 years, according to new figures from the Royal Institution of Chartered Surveyors' (Rics) accessibility index.Data from Rics shows that homes are now five times more expensive for first-time buyers than they were in 1996, and the average cost of getting on the property ladder has risen by 8.4 per cent in...Read More
Be careful of that last minute chase to save stamp duty costs
The end of the year sees the UK governments stand duty reduction come to an end with properties valued between £125,000 and £175,000 attracting a 1% stamp duty charge from 1 January 2010. Currently the UK government has exempted property purchases within this specific range in an attempt to try and inject some confidence and interest into the UK housing market.
While there is no d...
Homeowners told to prepare for increased mortgage rates
15/08/2014 Mortgage rates “will rise at some stage” and borrowers should be planning their finances for this eventuality, according to the Council of Mortgage Lenders (CML). During the second quarter of the year, home repossessions fell to the lowest level since quarterly records began in 2008. However, those who still have money left to repay on their mortgage should be careful they don...Read More
Is London commercial property on the rise?
Figures today from Great Portland Estates seem to indicate that property values in London may have turned a corner. The company reported a 15.5% increase in net asset value per share and two new acquisitions which would seem to indicate a renewed appetite for London commercial property. So is this the turning point we have been waiting for? While there's no doubt that commercial property in Lon...Read More