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.
False boost to the UK property market revealed
It has been revealed that the number of first-time buyers in the UK hit a two year high last December amid the impending repeal of the stamp duty concession which gave buyers the chance to save up to £1,750 on a purchase. Lenders have revealed that nearly 25,000 mortgages were approved for first-time buyers in December 2009 which was 26% up on November. While these figures may be slightly boosted...Read More
Credit crunch 'not affecting self-certs'
It has been claimed that the impact of the global credit crunch on the UK economy has so far had little impact on the self-certification (self-cert) mortgage market.Broker Alexander Hall has stated that the tightening of the lending criteria that has occurred in banks across the UK as a result of the turmoil in the global financial markets, those people who would have been eligible for a self-cert...Read More
Property portals' popularity grows
More homebuyers than ever before are searching for potential properties over the internet, with property portal popularity particularly high among the younger generation, new research has shown.According to Halifax Estate Agency, overall ten per cent of people looked for the home they now own on the world wide web and a further 29 per cent said they intend to use the internet to search for a prope...Read More
Government acts on empty property tax
Over the last few months there has been a rather strange phenomenon in the UK property market whereby those with empty properties have still been forced to pay business tax at the full rate. In many circumstances businesses have been forced to demolish buildings to avoid the tax which was crippling many and causing serious cash flow problems. However, the government has today announced a one-year...Read More
House prices rise again
A Nationwide report regarding UK house prices has shown a 1.3% rise in July making it three consecutive monthly rises in a row. The average house in the UK is now valued at £158,871 and is only 6.2% down on the value 12 months ago. The marked turnaround in the UK property market has surprised many and there are indeed many sceptics who cannot as yet believe the figures are some strong.