Students force up property prices
Despite the fact that the students of today are often associated with very little income, often spendthrift and looking to save as much money as possible, it seems as though a number of university towns in the UK have benefited from the growing influx of students. Figures in the press this weekend show that students in six out of ten university towns have forced the price of property up by around 30%.
The largest recent increase in property prices was seen in Aberdeen where prices have appreciated by around 40% since 2005, a period which has seen the number of students in the city rise by 54%. This particular pattern has been replicated across many "student cities" in the UK and with more and more people now looking to rent as opposed to buying in the short-term there is potential for the situation to get worse before it gets better.
It will be interesting see how UK mortgage companies react to this new trend which is in direct comparison to the US model where many people are now moving away from the rental market and looking to purchase property. Whether this is a short-term change in the long-term UK trend remains to be seen but there are many reasons as to why it could continue for the foreseeable future.
Manchester City sign £1 billion property development agreement
Manchester City football club, currently under the ownership of Sheikh Mansour, has today announced plans for a £1 billion development of the land around the football club stadium. This is part of a wider development in the Manchester area with co-operation from the Manchester City Council. The move will revitalise an area of Manchester which has for many years been in decline and bring employ...Read More
Budget Headlines : Property stamp duty exemption to continue
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Repossessions up 8.5% in first quarter
UK lenders issued 8.5 per cent more repossession claims during the first quarter of this year, in a clear sign that borrowers are struggling with higher mortgage repayments and the rising cost of day to day living. Figures from the Ministry of Justice reveal that during the first quarter 38,688 possession claims were issued by lenders in the courts. This compares with the 35,662 mortgage possessio...Read More
House prices rise again in October
A survey by Hometrack has confirmed that house prices in England and Wales rose by 0.2% in October to an average of £156,400. This is the third such rise in a row and while many people are now starting to call the bottom of the property market it is worth noting that the number of people signing up with estate agents has begun to slow. While this may just be a reflection of the time of the year,...Read More
Landmark ruling in sale and rent back sector
A judge has today issued a landmark ruling in the sale and rent back sector which could have a major impact in the longer term. The sale and rent back market has become more and more popular as the economy continues to struggle with many homeowners, often in arrears with their mortgages, agree to sell their homes at a discount with the opportunity to rent the property for a predetermined period.