UK property market under pressure
February figures for the housing market in the UK showed an annual increase of 9.2% but a fall of 1% in prices compared to January. This is the first fall in UK property prices since April 2009 and while it should not be taken in isolation as the turning point of the recent trend all eyes will be on the figures next month. There were a number of specific reasons why property transactions stalled in January, with the end of the stamp duty concession in December and the icy weather is said to have put off many house buyers.
While the UK property sector as a whole has shown significant growth over the last year there are concerns that the earlier momentum may well be fading and unless we see an increase in liquidity and improvement in the overall UK economy, house prices could start to turn downwards. This will be a major negative factor for the short to medium term outlook in the UK as property plays a major part in both personal, business and investment markets. Whether this reduction in month on month property values is a short-term blip or perhaps a turning point in the UK property sector remains to be seen.
Share this..
Related stories
House prices down 0.9%
UK house prices are now almost one per cent less than they were a year ago, following a seventh consecutive monthly decline.Data from house price information group Hometrack shows that the average price of a home in England and Wales fell by 0.6 per cent during April. This brought the average value of a home to £173,100 - 0.9 per cent less than it would have been worth in April 2007.Further evide...
Read MoreAre first-time buyers deserting the UK property market?
Figures released by the National Association of Estate Agents show there has been a significant reduction in the number of first-time buyers involved in the UK property market over the last six months. Just six months ago, 43% of all registered purchases were on behalf of those looking for their first home while last month this figure fell to just 19%. The figure of 19% matches the record low reac...
Read MoreBovis concerned about UK housing market
Bovis, one of the UK's leading house builders, has today gone public with a number of concerns regarding the short to medium term future of the UK property market. While the company reported a return to profitability, with £3.5 million surplus for the first six months of 2010, and an increase in both house prices and housing sales, there was much mention of the government's spending cuts and tax...
Read MoreGovernment Rate Changes Lead To Property Demolitions
While it did not receive an awful lot of coverage in the financial press it seems as though a move by the government back in April which took away rate relief on empty buildings is leading to a massive increase in demolitions. As businesses seek to cut back their tax bills as much as possible many are now looking to flatten empty buildings and offices in order to avoid what can be a substantial t...
Read MoreWhy Are Overseas Investors Looking At The UK Property Market
The last few weeks has seen an increase in demand from overseas property investors for assets in the UK, with investors from Dubai very much at the front of the queue. So what is it about UK property which is attracting this overseas interest and will it continue?
Places like London have always held a special place in the minds and hearts of many in the property market. It offers...