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.
More Job Losses In The House Building Sector
News that Persimmon has been forced to lay off over 2,000 of the company's workforce this week brings the number of job losses in the sector to over 4,000 in the last seven days. It seems that the more the house builders try to reduce their cost bases the worse the housing market becomes. Such is the severity of the situation that more and more analysts are voicing concerns that this current hou...Read More
Property market rush expected before stamp duty holiday ends
The UK government is tonight under renewed pressure from consumer groups in the UK with the forthcoming ending of the stamp duty holiday on 31 December. Under recent regulations introduced by the government, homes with a the value of under £175,000 will not attract stamp duty if the deal is completed prior to 31 December at which point the system reverts back to "normal". However, there are calls...Read More
What should come first - an increase in mortgage liquidity or a rise in property prices?
Despite the Council of Mortgage Lenders in the UK (CML) forecasting an increase in UK mortgage liquidity in the latter part of 2010 there is concern that mortgage companies are waiting for a revival in the UK property market. This then prompts the question, what should come first, an increase in mortgage liquidity or a rise in property prices? This is very much a chicken and egg situation in th...Read More
Property companies looking to invest for the next upturn
It seems as though property companies in the UK such as Land Securities are now readying themselves for an increase in demand for property in the medium term and looking to invest into new projects in the short term. Indeed yesterday we saw Land Securities announce a £655 million investment in the West End of London as the company continues to see signs of growth in the UK property sector. It...Read More
Lack Of Finance Hits House Sales For March
Official data from the Land Registry has confirmed what many in the housing market had feared, a lack of mortgage finance is starving the markets of food and house sale numbers have fallen off a cliff. The figure show that the number of houses sold in March 2008 is half of the number sold in March 2007, with the figures being 53,080 and 106,047 respectively. While the figures are a major disappo...Read More