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.
Average house prices continue to rise
The average house in England and Wales is now worth about £166,798 which is a 6.7% increase over last 12 months. While this is an impressive increase in house prices over the period there is no doubt that pressure is starting to tell on the UK property sector. Over the last few weeks we have seen would-be buyers retreating to the sidelines hoping to catch more value on the way down as more seller...Read More
Overseas property guide for beginners
While the UK property market, and many more around the world, is on its knees it looks as though we are starting to see some good long term value emerging from the mess of the credit crunch. But where do you invest? What type of property? What are the risks?
As with any investment, there are risks to be considered and more so in the area of direct Read More
UK Housebuilders Feeling The Pressure
There are real concerns this morning that we are on the verge of a 1990s style housing slump which could literally wipe out a whole host of the UK’s best known housebuilders. Since January this year the sector has seen £4.6 billion wiped off it’s overall value and share prices are again in freefall this morning due to concerns about a possible repeat of the 1990s style slump.
Slow house price growth, despite credit turmoil
House prices overcame the turmoil in the credit market and grew by 0.7 per cent in September.According to Nationwide, the average price of a home has risen to £184,723, from £183,898 in August, despite riskier mortgages becoming more expensive for borrowers. Annual price growth has now slowed to nine per cent, down from 9.6 per cent last month - its lowest rate in almost a year. Nationwide added...Read More
Land Registry figures show 15.1% annual fall in property prices
Official figures from the Land Registry show that UK property prices fell by 0.8% during January which equates to a 15.1% fall for the year to January 2009. While this is a little less than other property surveys have indicated it still shows a gradual decline in the UK property market. The average house price in the UK is now officially £156,753 which is around £28,000 lower than the figure jus...Read More