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 is showing signs of weakness
A report by the Royal Institute of Chartered Surveyors has today cast doubt upon the recovery in the UK property market amid signs that demand is beginning to fall and an increase in the number of houses for sale could put pressure on prices. The survey for June found that on balance only +9% of surveyors questioned reported a rise in prices which was well down on expectations of +20. When you com...Read More
Halifax Call House Price Fall
There has been a 0.1% house price fall in November, according to The Halifax. The Lloyds Banking Group subsidiary claims that the price for an average property is now 0.7% cheaper than it was this time last year. The UK average house price now stands at £164,708. A major reason for this fall is that demand is not matching supply but in a reverse way where there are simply more properties a...Read More
House price growth slows
House prices in Britain rose by 1.1 per cent in April, Halifax says, due in part to "easing demand".The building society says its index has unveiled the slowest monthly rise so far this year, and the second smallest since July 2006.According to Halifax annual house price inflation now stands at 10.9 per cent, down from 11.1 per cent in March.And despite 59 consecutive quarters of growth, the firm...Read More
UK house building slumps to lowest level since 1953
The number of new homes being built in the UK slumped to its lowest level since 1953 according to statistics released today. There were just over 18,000 housing starts in the first three months of 2009 and while it was up 13% on the previous quarter it was down a massive 44% on the same period one year ago. However it is the near 50% reduction over the last 12 months which has caught the eye of ma...Read More
Is equity release an option for the future?
As the UK mortgage sector continues to struggle many experts are predicting a significant increase in equity release plans for households struggling to cover their mortgage payments. While there is no doubt that equity release programs can prove very useful for many people there is some concern about the rates available and the terms on offer. As the cost of borrowing continues to creep higher...Read More