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.
UK house prices fell in April
In a bitter blow for those who expected the UK property sector to take the UK economy out of recession, it was revealed that house prices fell in April negating much of the boost to confidence from the apparent rise in March. It was also revealed that Nationwide, among others in the financial sector, believes that the UK property sector is likely to take some time to recover with no quick fix on t...Read More
Rental demand drops
Demand for rental properties in Britain slumped during the last quarter, a new survey has shown.Research by the Royal Institute of Chartered Surveyors (Rics) claims that in the last three months tenant demand faltered while at the same time sales increased on the back of rising rental rates.In its quarterly survey Rics says 16 per cent more chartered surveyors reported a rise rather than fall in t...Read More
Buy-to-let landlords 'to dominate housing market'
The buy-to-let property market will grow by 41 per cent over the next ten years, housing experts have claimed.According to Alliance & Leicester bank, more positive attitudes towards renting will lead to buy-to-let properties' popularity soaring by 2016.The claim is based upon research conducted in partnership with the Centre of Future Studies thinktank that predicts the traditional rental market w...Read More
UK house prices could end the year higher than 2008
Surveyors have joined the party of property experts in the UK who now believe that UK property prices could actually end 2009 higher than they ended 2008. This is a remarkable turnaround in the UK property market which only a few weeks ago appeared friendless and with little hope of a short term recovery. However, many people believe that the average house price in the UK predominately reflects sp...Read More
Can we trust the property price indicators?
There is no doubt that the beginning of 2010 has seen some volatility in the UK property market with prices falling in February only to return to the growth path in March. Such is the volatility of these indicators that many experts are now discounting their strength and their usefulness in the current environment. More and more people believe that a shortage of properties for sale in the UK is...Read More