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.
George Osborne set to target banks and property owners
In a move which will certainly upset the traditional core Conservative party support in the UK it would appear, from leaks emanating from 11 Downing St., that George Osborne is set to make UK banks and property owners pay the price for the depressed UK economy. There have been rumours for some time about a potential banking levy and the proposed increase in CGT could hit as high as 50%, on a par w...Read More
First-time buyers shunning parental help
First-time buyers are now less and less inclined to ask for parental help, according to a new report. The survey from the Abbey First Time Buyer Unit found that 9.7 per cent of young people surveyed expected financial assistance from their parents - a drop from 23 per cent when a similar survey was conducted six months ago. There was also a decline in the number who expected their parents to act a...Read More
Er, is that something to do with freemasons?
Young homebuyers have displayed a startling level of confusion over property terms, with two per cent of 18 to 24-year-olds believing that a freehold property is one that only freemasons are allowed to buy.Although the above is probably the most alarming display of ignorance, a poll from AA Legal Services revealed that only 59 per cent of 18 to 24-year-olds could accurately define the term freehol...Read More
Govt figures show slowing housing market
The government has released figures reinforcing evidence that growth in Britain's residential property market is slowing down.Statistics from the Department for Communities and Local Government (DCLG) show that annual house price growth fell to 10.9 per cent in May from 11.3 per cent one month earlier.The three months to May saw prices rise by 11 per cent, taking the average house price in the UK...Read More
Financial Services Authority steps in regarding sale and rent back adverts
The Financial Services Authority (FSA) has today stepping to call time on heavy-handed sales practices within the sale and rent back sector. This is an area of the market which has shown significant growth in the short to medium term due to the fact that many people are behind on their mortgages and need cash as quickly as possible. To these people, the potential to sell their homes, organise a re...Read More