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.
Flat Share Market Thriving
As more people fall behind with their mortgages in the UK we have seen a significant increase in the number of rental agreements and flat sharing arrangements. Speaking at today's affiliate conference, Simon Spicer from leading flat share website Roombuddies.com said:
"Flat sharing is one obvious way in which people can save money. We've seen...
Average UK property now worth £155,885
The Land Registry has today confirmed that UK house prices rose by 1.7% last month, the second consecutive month of increases, which now places a value of around £155,885 on the average UK property. The rebound of 1.7% in July is the largest single monthly rise over the last five years and would appear to bode well for the future of the UK property sector. When you also consider the vast array of...Read More
Christmas comes early for buy to let landlords
A court ruling today has breathed new life into the buy to let sector and opened up the potential for compensation claims which could top £20 million. The case against Foxtons, the well-known London letting agency, resulted in Mr Justice Mann ruling that the company overcharged commission to landlords. Indeed the judge went on to describe Foxtons agreements as "traps and timebombs" which could pr...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?
Is Minerva now in play?
A 50p a share cash offer for UK property company Minerva has certainly put the cat amongst the pigeons in the UK property sector. Only 16 months ago the company was flying high attempting to fight off a £1.60 share cash bid which ultimately fell through. However, since then the company has struggled and the shares have been as low as six pence during this very difficult economic period in the UK....Read More