More undersold homes join the rental market
As the glut of unsold homes across the UK continues to increase we are seeing more and more properties placed into the rental market until such time as they can be sold. This massive increase in properties available for rent has resulted in great pressure on rental yields and pushed rental income lower and lower. This has the potential to become a serious problem for many buy to let owners as they rely on their rental income for their mortgages and their expenses.
As the UK property market still appears to be some way off recovery there is concern that many more homes will be transferred to the rental market in the short to medium term. This would place yet more pressure on this particular sector which until now had been assumed by many to be fairly bomb proof.
Everybody in the property market is waiting for the first sign of light at the end of the tunnel but as yet it has not appeared. The longer this situation drags on the more chance that property prices will continue to drift lower and lower although the significant fall in the strength of sterling could in due course see a whole host of overseas investors move into the UK market.
Share this..
Related stories
Confusion reigns as airspace ban lifted
As the first of hundreds of thousands of trapped holidaymakers start to make their way back by home it is becoming apparent that the lifting of the ban yesterday evening will take many days to unwind and many people will still struggle to get home in the immediate future. There is anger and resentment amongst passengers and airlines around the world that the European authorities and the UK governm...
Read MoreIs mortgage securitization back on the menu?
As we covered yesterday, the Royal Bank of Scotland is looking to raise around £4.7 billion in the mortgage-backed securities market by issuing bonds which are effectively backed by the company's mortgage book. While only a few years ago a £4.7 billion securitization issue would not even have hit the headlines, this is by far and away the largest proposal regarding mortgage backed securities for...
Read MoreBarclays Middle East backers question share price fall
After a multibillion pound fund raising programme in the Middle East just a short time ago, the directors of Barclays bank were under serious pressure at the time although somehow managed to contain a potentially serious rift with shareholders. However, the 40% fall in the price of the Barclays shares over the last week has seen substantial losses already for the company's Middle Eastern backers a...
Read MorePersonal loan rates continue to rise
While the financial press would appear to indicate that all is well in the UK financial sector, with lower mortgage rates and other offers often championed in the press, this is not a situation which is replicated throughout the financial world. A recent survey has shown that the average cost of a £5000 loan repaid over three years has increased by one percentage point from 11.2% to 12.2%. Even t...
Read MoreWatchdog concerned at insider trading
Incidents of insider trading on the London Stock Exchange are giving the country's financial watchdog serious cause for concern.According to the Financial Services Authority (FSA) suspicious share price movements preceded 23.7 per cent of takeover announcements in 2004/05.Although this represents a fall from the peak of 32.4 per cent in the previous year, the FSA says the level is still too high;...
Read More