How can first-time buyers climb onto the property ladder?
A report yesterday suggested that the UK is fast becoming a property rental economy rather than a property purchase economy, something which has been in place for many decades. There are now great concerns that first-time buyers are effectively being priced out that the UK property market due to an increase in property prices and a lack of liquidity in the mortgage market. So how can first-time buyers climb onto the property ladder?
There are many different options available for first-time buyers although unfortunately they either mean years of saving or some form of shared equity with a housing association or other third party. At this point in time even the average UK house price is well beyond the means of many first-time buyers and even if property prices come down, there may be a reduction in liquidity in the mortgage market which will again block their route to entry.
It is ironic that the UK situation has now turned full circle in direct contrast to the US situation where many people had preferred to rent rather than buy. There is very little assistance that the UK government can offer in the short to medium term and ultimately first-time buyers are now at the beck and call of market forces.
Land Securities reports improvement
Land Securities, the U.K.'s largest real estate investment trust, has today announced figures which would indicate that the UK property sector is starting to recover. Net income during the six months to September 30 reached £11.9 million which compares to a loss of £1.73 billion during the corresponding period last year. This is a major improvement although the net asset value of the company's p...Read More
Agents 'not applying for Hips before selling homes'
Some estate agents are neglecting to apply for Home Information Packs (Hips) until after they begin advertising a property, the BBC reports.According to new research from the Law Society, pressure from sellers who do not wish to pay the £300 required for the packs cause this delay.This apparent consumer antipathy to Hips - which became mandatory for all home sales last year - seems to have been s...Read More
British Land looking to expand in the future
UK property giant British Land appears set to hit the investment trail with an admission that the company is looking to invest upwards of £2.5 billion into the UK property market. This comes at a time when the company announced its first quarterly increase in assets for some time and a more upbeat statement for the immediate future. However, investment into the UK property sector will not be spre...Read More
Short-term dip in UK housing market
Figures from UK Land Registry are disappointing on the face of it with a 0.1% reduction in UK property prices between July and August. However, when you consider the traditional summer lull which occurs nearly every year, the situation is perhaps nowhere near as bad as some people would have you believe. The average price of a property in England and Wales is now £155,968 and thankfully the annua...Read More
The forecast for UK house prices is very depressing
While the National Institute of Economic Research has today issued a report regarding the UK property sector, with a forecast that house prices will fall by 8% in real terms by 2015, this is not the worst forecast currently in the marketplace! A report by Capital Economics today forecasts that the UK property market could fall by up to 25% over the next two years wiping off almost £42,000 from...Read More