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.
Fears over fire sale of UK property
Fears are growing today regarding a possible fire sale of UK property assets as the UK government looks to increase capital gains tax charges. It is believed the government will increase the flat rate from 18% for non-business assets to anywhere in the region of 40% to 50%. It is unlikely that the capital gains tax changes would come into effect immediately and we could see a fire sale of UK prope...Read More
Buy to let yields continue to fall
In a sign of strength in the UK property market it has been revealed that the average buy to let property now commands a rent of 4.75% as of January 2010 compared to a peak of 5.1% in March 2009. Despite the fact that UK property prices have risen over the last few months, many landlords have found it difficult to push through rent increases and indeed an increase in the number of rental propertie...Read More
Nationwide survey points to difficult housing market
Despite the fact that house prices remained fairly flat in September, showing a 0.1% rise according to the Nationwide House Price Index, the three-month rate of change has turned downwards for the first time since November 2009. House prices fell by 0.9% in the three months to the end of September compared to the three-month period ended August. This longer term trend would appear to show that hou...Read More
Hips and CGT dominate property market
Online property sector leader Rightmove has today confirmed a 22% increase in the number of properties for sale after the UK government abandoned home information packs. However, there is a growing belief that the increase in properties for sale may also have something to do with forthcoming changes in the capital gains tax regime which could see landlords taxed more heavily upon the sale of their...Read More
New fall in property sales highlighted by report
The number of homes being bought in the UK has dropped sharply, a report revealed today.HM Revenue & Customs said that 59,000 properties changed hands in September.In September 2007, 126,000 were sold - 53 per cent more.However, the credit crunch has led to increasing restrictions on mortgage loans in the intervening months.Falling house prices - with the value of the average UK property worth ove...Read More