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.
Nationwide warns on UK housing
After reporting pre-tax profits of £117 million for the six months to 30 September, a fall of 63% on the corresponding period last year, Nationwide has today warned of "inevitable downward pressure" on UK house prices next year. This is a stark warning from a company which is well respected in the UK property sector and would appear have its " finger on the pulse" of the UK housing market. So wha...Read More
Is renting a viable alternative to a house purchase?
As the UK property market continues to spiral downwards, despite the attentions of the UK government, many people are now looking towards the rental market which has also had its fair share of troubles in recent times. Rental values have fallen in line with house prices and there are now some very attractive lease and rental options open to many areas of the UK. So is renting a viable option in th...Read More
Homeowner forced to postpone £1 million raffle
Brian Wilshaw has fallen foul of the Gambling Commission after plans to raffle his home were suspended until a review of the terms of the raffle. He has already sold 46,000 tickets at a cost of £25 which will raise just over £1 million although when all costs and expenses are deducted he would actually receive £1 million, i.e. the current value of his home and additional property.
Will an increase in social housing hold back the UK property market?
Leaks from the UK Treasury are suggesting that the UK government is set to put aside significant funding for social housing across the country. However, while there is no doubt that demand for social housing has never been higher, with more and more homes being repossessed and families thrown onto the street, there are concerns this could impact on the short to medium term potential of a property...Read More
How low can the income/house price ratio fall?
It has been revealed that there has been significant fall in the house price to average earnings ratio over the last 18 months. The figure hit a peak of 5.84 times earnings in July 2007 which coincided with the top of the UK housing market and the level has since fallen back to 4.44 in December 2008. But how low can the ratio fall and what impact will this have on UK house prices?