UK Property Auction Values Fall By 44% In May
To say that the UK property market is going through a very difficult time is something of an under statement but it seems that the once prosperous auction houses are also struggling to sell properties with sale values down a staggering 44% over the last 12 months. While May 2008 still saw over £415 million worth of property through the show rooms, this is well down on the May 2007 figure of £750 million.
This is just another example of how the UK property sector is being affected by the continued slow down in the economy and lack of funding. The short term situation does not look any better with more falls expected but auction houses may be a useful way of detecting signs of an upturn. Simply by looking at the percentage of lots for sale and the number sold, it may be possible to detect early signs of demand retuning.
London property has been the hardest hit to date with many of those inflated prices of the last few years losing much of their froth over the last quarter. Those who acquired expensive houses on income multiples of up to 8 (and higher in some cases) will be really feeling the pain and many have already slipped into the negative equity group.
Millionaire divorcee goes to court to claim back settlement money
City fund manager Bryan Meyerson has returned to the courts in an attempt to reclaim £9.5 million from an earlier divorce settlement with his wife. He claims that a 90% fall in the value of shares held by the couple would leave his ex-wife with over 100% of the couple's assets using the current value. In February of last year Mr Myerson's wife was awarded 43% of the couple's £25.8 million fortun...Read More
Should Aviva have mentioned the RSA approach?
The management of Aviva is this weekend under immense pressure from leading shareholders over the non-disclosure of an approach by RSA and a potential £5 billion offer for the company's general insurance business. Many believe that this highly sensitive piece of information should have been released into the public domain instead of being brought to the attention of the market by the financial pr...Read More
CBI expects 30,000 financial jobs to go in next six months
In a bitter blow to the UK financial sector the CBI has revealed expectations that 30,000 jobs could be lost over the next six months. When added to the 40,000 job cuts last year across banks, building societies, insurers and investment managers, this does not bode will have the future of one of the U.K.'s largest service sectors.
The CBI is also suggesting that profits and business...
Could the UK housing market undo Gordon Brown's political recovery?
Over the last few days there have been signs that the UK property market is softening and indeed many experts believe it is on the verge of falling back. A reduction in mortgage funding, fewer buyers and signs that prices are starting to soften could literally turn the market on a sixpence over the next few weeks. This would be a nightmare scenario for Gordon Brown who is currently enjoying a surg...Read More
Honda announces four-month closure of car plant
Honda has today announced a four-month closure of its Swindon car manufacturing operation in the UK as demand for new cars hits new lows. The workers at the Swindon plant will receive full pay for two months and 60% of their full pay for a further two months at which time the plant is expected to reopen. However, Honda has today reduced full-year profit forecast by 57% which does not bode well for...Read More