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.
Brits invest more in property than pensions
Britons invest an average £34 in home improvements per week while the weekly pension contribution is 89 per cent less at just £18, according to new research.A study carried out by the Rated Tradesmen website revealed that while nine in ten UK adults say they are 'very conscious' of the need to save up for retirement, 48 per cent have no pension plan. Seventy-three per cent of respondents said in...Read More
Property downturn starts to hit the middle classes
While there has been no hiding place for any homeowners across the UK the middle class professionals markers is one which appeared to be less affected in the early months of the economic slowdown. However a poll today reveals that 2 out of 5 middle-class professionals are seriously concerned that they will fall behind on their mortgage payments in 2009. The fact that many of these high earners hav...Read More
Rightmove reports impressive profits figures
Even though 2008 was something of a difficult year to say the least for the property sector it appears as though Rightmove, the online property website, is faring better than most. The company announced a 31% increase in revenue to £74 million in 2008 although the company did warn of slowing advertising revenue in the second half. Underlying profits were up 33% to £41 million and the company has...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