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.
100% mortgages are no more
Homebuyers without deposits will no longer be able to take out 100 per cent mortgages, with the news that Abbey is to withdraw its range. Abbey had been the last of the UK's mainstream lenders to offer 100 per cent deals, which had provided a lifeline to first time buyers unable to raise punitively high deposits. The move was announced by a spokesperson for Abbey who told the Daily Mail that the d...Read More
Even the Crown estate is suffering from the downturn
The value of the Crown Estate, which holds the sovereigns properties and investments, fell by £1.3 billion last year as the recession ripped into the UK property market. These are assets held by the state, although they do not include Royal palaces owned by the Queen, from which income is paid direct to the Treasury on an annual basis.
The entire estate was valued at £7.33 billion...
Lords report cites "extensive" Hips criticism
The government must do more to respond to the "extensive criticism" that has greeted Home Information Packs (Hips) so far, peers have claimed.A House of Lords select committee report today says it has "rarely seen such widespread opposition to proposals set out in secondary legislation" as that encountered during its investigation.The vast majority of resistance to Hips, due to come into effect in...Read More
Darling to ask lenders to help cash-strapped homeowners
Relief could be on the way for beleaguered homeowners in the form of new government proposals intended to alleviate the strain of meeting repayments. Under the proposals, lenders would enable homeowners to take a mortgage holiday, during which time they would not be obliged to make repayments for a limited time. It has also been proposed that mortgage providers begin a scheme whereby they buy back...Read More
So how much is your home worth?
As again we see mixed signals from the UK property market, with a suggestion that property prices are starting to move ahead, how much is your property actually work?
This is a question which more and more people up and down the UK will be asking themselves as financial concerns continue to mount and many look at ways to reduce their debt in the short term. While a sudden increase i...