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.
Government Rate Changes Lead To Property Demolitions
While it did not receive an awful lot of coverage in the financial press it seems as though a move by the government back in April which took away rate relief on empty buildings is leading to a massive increase in demolitions. As businesses seek to cut back their tax bills as much as possible many are now looking to flatten empty buildings and offices in order to avoid what can be a substantial t...Read More
Rightmove reports impressive profits figures
Even though 2008 was something of a difficult year to say the least for the property sector it appears as though Rightmove, the online property website, is faring better than most. The company announced a 31% increase in revenue to £74 million in 2008 although the company did warn of slowing advertising revenue in the second half. Underlying profits were up 33% to £41 million and the company has...Read More
Optimism in the UK estate agency sector
The news that US distressed investor specialist Oaktree is close to signing a deal for a 35% share of UK estate agency chain Countrywide has given some investors in the sector food for thought. The company was acquired for over £1 billion during the height of the UK property boom although it is rumoured that Oaktree would be investing just £75 million of fresh equity for a 35% stake. However, as...Read More
London house price growth 'stalling'
House price growth in the UK capital is showing signs of slowing down, according to property website Rightmove.The monthly increase in London property asking prices from May to June reached only 0.7 per cent to £387,898. Annual growth in London now stands at 23.1 per cent.Rightmove says this is lower than growth rates achieved in many other parts of the UK included the north and south-west of Eng...Read More
UK house price rise runs out of steam
The Council of Mortgage Lenders in the UK (CML) has this evening suggested that while there has been significant interest in UK property, limited access to mortgage finance appears set to cut this improvement short. Confirmation that mortgage lending fell again in May was something of a body blow to homeowners in the UK and perfectly illustrates the fact that while there appears to be demand for U...Read More