Confusing signals from the UK property market
Despite the fact that recent information released regarding the UK property sector would seem to indicate a downturn in business and property prices, the Council of Mortgage Lenders in the UK has confirmed a reduction in repossessions in the second quarter of 2010. A total of 9400 properties were repossessed in the three months to June 2010 which is down 400 from the previous quarter and down 2400 compared to same period last year.
As a consequence the Council of Mortgage Lenders has revised its forecast for repossessions for the full year to 39,000 against an initial forecast last year of 53,000. This also compares favourably to the total 47,700 properties which were repossessed during the whole of 2009. Again this would appear to indicate that fewer people are falling behind with their mortgage payments which would in itself indicate an improvement, or at least stability, in the UK economy.
However, this comes at a time when the public sector budget is being slashed, the economic revival appears to be flagging and UK property prices have started to downturn. Whether or not the new forecast of 39,000 repossessions in 2010 is revised, if the economy does falter in the second half of 2010, remains to be seen.
UK pension funds set to move back into property
In a move which could give the UK property sector a solid foundation for future growth it has been revealed that pension funds and investment companies in the UK are currently in talks with the government about acquiring large scale housing developments. The idea is to create an institutional private rented sector which will see pension funds and investment companies buying up whole housing estate...Read More
Average English house price to rise by forty per cent in five years
By 2012, the average house price in the UK is predicted to rise by 40 per cent to £302,400, according to the National Housing Federation (NHF). Due to high interest rates, house price growth should slow initially to just two per cent a year for the next two years, but from 2009 on, the NHF predicts that house prices will rise by ten per cent a year, as a result of lower mortgage rates and housing...Read More
Kids 'happy' for parents to release equity
With the current state of pensions in chaos, equity release is becoming an option for more and more senior citizens and apparently, children do not mind if their parents use the family home in this way.Sarah Horner, spokesperson for Norwich Union, said that although it was important to discuss financial plans with other family members, most children would be supportive of their parents releasing t...Read More
Estate agents complaints on the rise
More than 8,000 complaints from customers regarding their estate agent were recorded in 2006, the Ombudsman for Estate Agents (OEA) reports. The complaints, caused largely by administration problems with sale and purchase details along with customer's general distrust of estate agents, saw a year-on-year rise of more than a third Ã¢â‚¬" 2005 saw a total of 6,021 complaints registered with th...Read More
Using your SIPP for property investment
Here's how you can cash-in on one of the longest standing advantages of having a SIPP - buying commercial property. There are just a few things you'll need to know. There are some great advantages associated with doing this; • Growth of the property will be free of capital gains tax and it will be free of inheritance tax on death. • Any rental income you make from the pr...Read More