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.
UK rental market under severe pressure
The Royal institution of Chartered Surveyors (RICS) has this evening dropped a bombshell on the UK property market with data showing a significant fall in rental value and many estate agents forecasting further downside. The survey revealed that 55% of estate agents expect rental rates to fall over the next three months against just 48% in April. The problem appears to be oversupply in the UK rent...Read More
House prices hit two and a half year low
House prices across the UK have hit a two and a half year low with average year on year price falls of 7.3% but the bad news for home owners is that the situation is likely to get worse before it gets better. Recent figures also show that the supply of new homes in the UK has almost dried up which was expected but is a worrying sign for the UK's house building sector which faces another testing p...Read More
Tesco announce plans to build four mini-villages in UK
Tesco, the UK's largest supermarket group, has today announced plans to build four mini villages across the UK in what many believe is a sign of things to come. The company has been looking to expand into property for some time and today's revelation that new developments will be built at Bromley by Bow, East London, Dartford, Kent, Streatham, South London and Woolwich have received mixed response...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
House Repossessions Soar 40% In First Quarter
News that the number of homes being repossessed has risen from 6,471 in the first quarter of last year to 9,152 in the first quarter of 2008 has spooked many in the market and is likely to have an impact for some time to come. Experts forecast that the figure will rise even further over the next 12 months with the full extent of credit crisis yet to hit home. So what impact will this have upon t...Read More