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.
Equities recommended over property
Equities are superior to property as a long-term investment, according to a new study.A report from Skandia revealed that £30,000 invested in 1983 in UK shares would be worth upwards of £545,000 today.However, a house bought at the same time 25 years ago, when the average price was £30,000, would now only be worth £174,000.This put the growth rate of shares at 1718 per cent, compared to just 4...Read More
Is it fair to blame the media for falling house prices?
A number of estate agents and surveyors around the UK are attempting to place the blame for the ongoing downturn in the UK property market on the media sector. However, a number of prominent media property experts also point out that when the market is rising there is no credit given to the media in the UK and it is only when prices began to fall that damaging headlines "are to blame". While th...Read More
Standard And Poors Sees Problem Of Negative Equity Increasing
When the leading credit ratings agency, Standard and Poors, suggest that UK house prices still have some way to fall it really is time to sit up and listen. Standard and Poors suggest that the UK market still has a further 17% to fall before it can start to rebuild again, a figure which will see 1 in 7 home owners move into negative equity - a figure of 1.7 million home owners in total!
Council tenants and their right to buy
Even in the midst of the current economic downturn which has seen property prices plummet across the UK there are still many council tenants able to acquire their properties at a significant discount to the current market price. While a number of tenants may not be in a position to acquire their homes at this point in time it is worthwhile checking out what rights you have and when they may expire...Read More
Housebuilding sector under pressure
News that housebuilding in the UK has fallen for the first time in 12 months is a worrying sign for the industry and a worrying sign for the UK economy as a whole. A survey released today cast a very dark shadow over the sector with confirmation that orders fell in September for the fourth straight month, job losses are increasing and work rates on offer to subcontractors have been slashed of late...Read More