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.
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
The great mystery of UK house price increases
Each day seems to bring a little more positive news on UK house prices which on the whole appear to be rising in what is still a very depressed and difficult economic environment. Unemployment continues to push ahead, more people are in negative equity, more and more people are falling behind with their mortgage payments and ultimately the financial pressure is increasing in many parts of the UK p...Read More
Darling to ask lenders to help cash-strapped homeowners
Relief could be on the way for beleaguered homeowners in the form of new government proposals intended to alleviate the strain of meeting repayments. Under the proposals, lenders would enable homeowners to take a mortgage holiday, during which time they would not be obliged to make repayments for a limited time. It has also been proposed that mortgage providers begin a scheme whereby they buy back...Read More
Do You Understand The Sale And Leaseback Market?
As capital becomes ever scarcer we are seeing more and more UK householders looking at the ever growing sale and leaseback market. This market allows home owners to sell their homes to financiers and then arrange a leaseback and rental agreement - very often for the rest of their lives. Until recently this area seemed to be more popular with the older generation but times are changing, but do pe...Read More
Are we seeing the end of the buy to let boom?
The buy to let boom was the epitome of the rise and rise in the UK property market over the last decade but the signs are that many buy to let businesspeople are struggling. Mortgage rates have not reduced in line with base rates, house prices are falling, many UK tenants are struggling to pay their rent and more and more homes are being dumped on the rental market which is having a detrimental ef...Read More