Buy to let market running out of steam
The CML has today revealed that the UK buy to let market has rebounded strongly from post-credit crunch levels although it would appear to be running out of steam. The number of buy-to-let mortgages agreed increased by 13% in the second quarter of 2010 with around 25,000 confirmed. While these figures are welcomed by investors in the buy to let market they are just around 25% of the business levels seen prior to the credit crunch and the worldwide economic downturn.
There is no doubt that the buy to let market is "over the worst", at least in the short-term, but with many experts predicting difficult times for the UK economy and a difficult period for the property market it will do well to maintain current growth levels. Indeed even the CML believes that there are signs that the sector is easing back although how far it will fall remains to be seen. It is also worth noting that a large number of buy to let investors of years gone by have now left the market, many having been forced to sell on their properties at knockdown prices. The buy to let sector enjoyed something of an Indian summer for much of the first decade of the 2000s although whether these "good times" will return again remains to be seen.
London sales 'driving' house prices
Sales of London property are continuing to drive up house prices elsewhere in the country, according to the government's Land Registry.The average price of a home in the capital reached £335,658 in May, compared to £180,594 for the rest of England and Wales, the agency said.As a result the registry's monthly house price index was pushed up to 219.6 points a level which represents an annua...Read More
RICS house price index under pressure
The prominent Royal Institute of Chartered Surveyors (RICS) house price index fell to -36 in the three months to September from -32 in the three months to August. This fall in the index reflects the fall in house prices in England and Wales and is the largest one-month fall since May 2009. While the drop is effectively blamed upon sellers rushing to the market to sell before further perceived weak...Read More
Repossessed homes set to flood the UK market in 2010
Rightmove, the well respected UK property company, has again entered the fray with regards to predictions for the UK property market in 2010. The company has reiterated its belief that the property market will be flooded by "forced sellers" in 2010 with a number of banks ready to sell off repossessed homes and place more pressure on those who are falling behind with their mortgages. While many...Read More
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...Read More
Is the house building sector back in favour?
News that Hugh Osmond, one of the UK's best-known businessmen, has made a takeover offer for UK housebuilder Crest Nicholson has certainly caught the attention of investors in the UK. It is believed on offer in the region of £300 million to £350 million was tabled last week and a response is awaited from the company. There have been rumours for some time that Hugh Osmond has been looking at vari...Read More