Property Market Prices Fall Back To August 2006 Levels
News that the average property value has fallen by some £20,000 since the credit crunch began will do nothing to stem the tide of fear and concern in the housing market. Figures from the Royal Institute of Chartered Surveyors (RICS) also confirm that house transactions have fallen to their lowest level since records began back in the 1970s. In stark terms, just 15 houses were sold during the last 3 months by the average estate agent, a far cry from the recent heady days!
As the news gets worse in the property sector we are seeing speculation that we may have hit the bottom, but the truth is that nobody knows where the sector is headed next. Finance is still only available to a limited number of first time buyers and existing home owners are not able to receive a fair price for their homes so many are staying put. All of this has led to a sharp fall in the number of property transactions of late and the estate agency sector is suffering badly.
While we have already heard alarm bells from the main players in the estate agency sector, it seems inevitable that we will have a number of high profile victims with the number of transactions not able to support the large number of people working in the sector. Many are feeling the financial strain already and balance sheets are being stretched to the limit.
Share this..
Related stories
UK Gilt market continues to rise
As we covered last week, the UK gilt market continues to rise on expectations that the Bank of England will soon pump up to £150 billion into the market by buying up government securities and other financial instruments. The acquisition of these investments, via quantitative easing, would increase liquidity in the market place for both the government and financial business in the UK.
Read More
Will the Post Office new mortgage arrangement shake up the market?
The UK Post Office, looking to extend its financial services division, has today launched a new mortgage with a fixed rate of 2.85% for two years. It will now be possible to borrow 65% of the value of your home at the new rate although there is a £1495 arrangement fee to consider. However, the 0.8% reduction in the interest rate charged on a two year fixed term is very competitive and should attr...
Read MoreWill you return to excessive spending when the recession is over?
As talk of a recovery in the UK economy continues to build many people are now looking to the future with more confidence. However, there is the potential for this confidence to create complacency and a number of consumers and businesses could well return to "excessive spending" before their finances are fully recovered. It is no secret that UK personal debt was at record levels prior to this rece...
Read MoreSimple ways to save money : Clear expensive debts
There are many ways to save money on an ongoing basis but ultimately one of the main rules we need to consider is the reduction of expensive debt before low interest rate debt. The chances are that the average UK consumer will have a mortgage, loans, overdrafts and probably a credit card. If this is the situation you need to consider reducing your credit card debt before anything else because this...
Read MoreAlistair Darling's hands tied in run up to general election
Yesterday's news that Alistair Darling agreed to cut planned business tax rate rises from 5% to 2% (with the additional 3% staggered over the next two years) perfectly illustrates the difficult situation and UK government is in today. The need to both maintain and improve tax streams in the short term coupled together with the need to keep the UK public onside as we approach the next general elect...
Read More