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.
Property companies looking to invest for the next upturn
It seems as though property companies in the UK such as Land Securities are now readying themselves for an increase in demand for property in the medium term and looking to invest into new projects in the short term. Indeed yesterday we saw Land Securities announce a £655 million investment in the West End of London as the company continues to see signs of growth in the UK property sector. It...Read More
British Land announces record losses
Full-year figures from British Land were released today showing a record loss of £3.18 billion against a loss last year of some £1.56 billion. The figure was significantly higher than the forecast £3 billion which many analysts had pencilled in and perfectly reflects the ongoing difficulties of the UK office market.
The company is the largest office developer in London and as su...
CML uncertain over Hips rollout
Britain's property market is likely to be distorted by the introduction of home information packs (Hips) in the next few months, the Council of Mortgage Lenders (CML) has suggested.Hips, due to be rolled out on June 1st, are an attempt to make the homebuying process easier by forcing sellers to provide information about each property that goes on the market.The CML's monthly market commentary argu...Read More
Home repossessions on the rise in the UK
While news that home repossession were up some 71% in the second quarter of 2008 have caused some unrest in the markets, this will be chicken feed compared to the number that will lose their homes before the economy recovers. Just over 11,000 homes were repossessed in total during the quarter but with the Bank of England suggesting that both negative equity and mortgage defaults are set to rise d...Read More
Homeowners see £30,000 knocked off property values
Information from the Halifax has shown a 16.2% reduction in the price of UK property during 2008 which equates to a fall of £30,000 from an average family home. This is the biggest fall in over 25 years and with further reductions expected in 2009 it could get very much worse before it starts to improve. So what next?
As finance for the UK mortgage market continues to recede, ahead...