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.
Property companies looking to invest for the next upturn
It seems as though property companies in the UK such as Land Securities are now readying themselves for an increase in demand for property in the medium term and looking to invest into new projects in the short term. Indeed yesterday we saw Land Securities announce a £655 million investment in the West End of London as the company continues to see signs of growth in the UK property sector. It...Read More
UK house prices increase in January
The Nationwide report on the UK property sector has highlighted a growing trend which has seen UK house prices increase in value over the last year. A 1.2% increase in the value of property in January, compared to December 2009, brings the total annual increase to 8.6% between January 2009 and January 2010. But what does the future hold for the UK property market? In a move which will surprise...Read More
Persimmon Calls For Government Assistance NOW
Persimmon is the latest house builder to call on the government to intervene in the mortgage market as soon as possible after announcing pre-tax profits which were down two thirds on the same period last year. But what can the industry expect from the authorities?
As we have covered on this site over the last few months the UK government seemed to be on the verge of announcing a nu...
It is time to look at the UK housebuilding sector again?
Amid signs that UK house prices are starting to move higher, according to the recent Nationwide Building Society report, we have seen a rise in UK housebuilder share prices. This is a significant move from the recent trend where concerns regarding debt, business levels and the immediate future saw many investors run for the hills. So is it too early to look at the housebuilding sector or has it tu...Read More
The house price quandary goes on
Official figures from the Land Registry have today cast doubt on the expected recovery in UK property market. Despite a number of reports showing a positive return on house prices in May the figures from the Land Registry show a further fall of 0.2% to an average across the UK of £152,497. While the reduction in prices is the same as that seen in April it is significantly lower than the 0.5% fall...Read More