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.
Hidden payments revealed in Home Information Packs
Promoted by the UK government as the saviour of the UK property market but ridiculed by estate agents and surveyors as a complete waste of time, Home Information Packs (HIPs) are in news today after an undercover investigation by Channel 4. Unconfirmed reports suggest that the providers of some HIPs packages are working with estate agents and offering the potential for additional fees to be added...Read More
Barratt Developments reports £592.4 million loss
Barratt Developments has today announced a £592.4 million loss for 2008 compared with a profit of approaching £200 million for the previous year. While the massive loss includes a £494 million write-down on the company's land bank it is within the scope of analyst forecasts and while initially the figures look disappointing they may not be as bad as first thought.
The company has...
London sales 'driving' house prices
Sales of London property are continuing to drive up house prices elsewhere in the country, according to the government's Land Registry.The average price of a home in the capital reached £335,658 in May, compared to £180,594 for the rest of England and Wales, the agency said.As a result the registry's monthly house price index was pushed up to 219.6 points a level which represents an annua...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...
Buy to let market in serious danger
While the fall and fall of the Bradford and Bingley is a true reflection of troubles in the buy to let market it seems as though the situation has got much worse over the last couple of days. Buy to let products on the market had fallen from the heady heights of 3,662 at the peak of the market to just 456 in July but had recently shown improvement to 700 last week. However, concerns that money m...Read More