Has the UK property market really turned?
The 0.9% increase in the average house price in the UK, in March, caught many analysts unaware and unprepared for the news. However, before we all get carried away and expect to see a significant increase in the UK property market it is worth remembering that things are still very tough in the UK. The economic outlook for the country as a whole is mixed to say the least with some suggesting a depression may just be around the corner.
When you also take into account the significant reduction in mortgage liquidity over the last few months, the large increase in deposits required and general lack of activity in the market, it does not bode well for a short-term bounce. However, there is no doubt that some investors are waiting on the sidelines for confirmation that the UK market has turned with substantial money available. Quite when and where these funds will be invested remains to be seen but if April and May produce similar figures to those from March then we could see property investors return to the market.
Whether we are seeing a return of the feel-good factor or a short-term bounce remains to be seen but thankfully we are finally discussing a more upbeat report on the UK property sector!
Share this..
Related stories
NI Blunder Sees Many Pensioners Left Penniless
Yet again we are seeing signs of the UK benefit system collapsing around our ears with news that a number of people in the UK have been given the same National Insurance number. The catastrophe seems to have occurred when many people were issued with new NI numbers on marriage or returning to work. It has only just come to light that many people with the same name or same birthday have the same...
Read MoreCould the UK government risk increasing UK base rates?
Despite the fact that the UK economy is said to be on the verge of a potential double-dip recession a number of prominent economists are calling for UK base rates to increase in the short to medium term. They fear that the reincarnation of inflation in the UK is going to cause a major problem in the medium to longer term and short term pain is required to address this issue sooner rather than late...
Read MoreHidden 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 MoreIs the public services sector collapsing?
News that social housing maintenance group Connaught will make a "material" operating loss this year as opposed to forecast profits only a few weeks ago of around £60 million has given a short sharp shock to those who believed that the UK private sector would take up the "slack" from the public sector. There is now great concern that contracts which were agreed some time ago may well be wound dow...
Read MoreProperty 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