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.
Scottish Widows And Legal And General Looking To Property Derivatives
While they are both looking at the property derivatives market for different reasons, it is interesting to see that major players such as Scottish Widows and Legal & General are taking a keen interest. A derivative is simply the option, but not the obligation, to buy or sell an asset at a future date in return for a ‘margin’ payment. The right to take up the option is decided by the...Read More
So when will the housing slump end?
It is very much a case of history repeating itself with a number of experts now stepping forward to call the imminent end of the housing slump. But hold on a second, have we not been here before about 6 months ago? Or was it just 3 months ago?
We are seeing more and more experts crawling out of the wood work at an alarming rate to try and grab the headlines by calling the bottom of...
Why is the UK property sector racing ahead in London?
The UK property sector would appear to have recovered in general but the London market is already back to pre-recession levels after such a short space of time. Despite the fact that the financial climate in the UK is still very much overcast it would appear that homebuyers are prepared to "bid up" for properties in and around the London area. So can this continue?
The truth is that...
Property expert fears Hips "chaos"
Britain's housing market could descend into "chaos" when home information packs (Hips) are introduced on June 1st, a property expert has said.Mark Readings, of online estate agent House Network, makes his prediction following the publication of a survey that shows 87 per cent of Britons are completely unaware of the forthcoming implementation.From June 1st all sellers of homes in the UK will have...Read More
Property prices up again
House prices rose by 0.6 per cent in April, official figures from the Land Registry (LR) show.Although this monthly increase represents a slight decrease on March's figure, the new annual growth figure of 9.1 per cent is still among the highest for two years.The average price of a property in England and Wales now stands at £179,935, up from £178,423 in March.But most of this growth came from Lo...Read More