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 property market under pressure
February figures for the housing market in the UK showed an annual increase of 9.2% but a fall of 1% in prices compared to January. This is the first fall in UK property prices since April 2009 and while it should not be taken in isolation as the turning point of the recent trend all eyes will be on the figures next month. There were a number of specific reasons why property transactions stalled i...Read More
Homeowners told to prepare for increased mortgage rates
15/08/2014 Mortgage rates “will rise at some stage” and borrowers should be planning their finances for this eventuality, according to the Council of Mortgage Lenders (CML). During the second quarter of the year, home repossessions fell to the lowest level since quarterly records began in 2008. However, those who still have money left to repay on their mortgage should be careful they don...Read More
More Brits looking at overseas property as an investment
While the number of Brits that own property overseas can vary depending up on who you talk to, it is widely regarded that there are in excess of 2m overseas homes owned by Brits. However, if indications from the markets are correct this figure is set to rise sharply over the next few years. A mixture of higher living costs, inflated property prices and general disappointment at the state of the...Read More
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
Approach let-to-buy 'with caution'
Let-to-buy must be "approached with caution", according to a spokesman for the Intermediary Mortgage Lenders Association (IMLA).A let-to-buy mortgage is designed to allow first time buyers to get onto the property market, by using the rental yield from their property to pay for their mortgage and get their feet on the first rung of the ladder.Peter Williams, executive director of the IMLA, said: "...Read More