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.
Minister calls for an end to the boom and bust UK property market
UK housing minister Grant Shapps has fallen into a similar trap to that set for Gordon Brown by declaring that the UK government is looking to avoid the traditional boom and bust scenario in the UK property market. Time and time again politicians seem to ignore the fact that boom and bust economic cycles have been occurring forever and a day and ultimately they are down to the sentiment of investo...Read More
Late rental payments at five year low
15/11/2013 The number of people who have fallen behind on their rent is now at a five year low, making this the healthiest month since this particular data was first recorded in November 2008. LSL Property services claimed that late rent fell by £49 million between September and October, to 7.1% of total rent in England and Wales, compared with 8.5% in October. Furthermore, this data was ad...Read More
Land Securities injects realism into the UK property market
After announcing a 34% reduction in the value of its property portfolio, Land Securities has shocked both the UK stock market and the UK property sector today. The company has heavy exposure to both the retail sector and the office space sector across the UK and today's figures indicate the situation may be worse than many had anticipated. Overall the company announced losses of £4.7 billion agai...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
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.