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.
Will the UK government's plan to buy empty homes work?
In a scheme which is set to cost the taxpayer around £400 million it has been announced that the UK government will offer interest-free loans to first-time buyers to cover deposits of up to 30% on new properties. This is the government's attempt to reduce the number of empty new homes across the UK and start to oil the wheels of the property market again.
It looks as though the sch...
UK house building slumps to lowest level since 1953
The number of new homes being built in the UK slumped to its lowest level since 1953 according to statistics released today. There were just over 18,000 housing starts in the first three months of 2009 and while it was up 13% on the previous quarter it was down a massive 44% on the same period one year ago. However it is the near 50% reduction over the last 12 months which has caught the eye of ma...Read More
Why is the London property market so strong?
A number of property experts have released their forecasts for 2010 with some suggesting that the London property market, i.e. central London, will again be the strongest in the UK during 2010 and will bounce back harder and faster than any other area of the market. Some people are even suggesting that London property prices will hit pre-credit crunch highs in 2010, which would indicate the London...Read More
So when will the housing slump end?
It is very much a case of history repeating itself with a number of experts now stepping forward to call the imminent end of the housing slump. But hold on a second, have we not been here before about 6 months ago? Or was it just 3 months ago?
We are seeing more and more experts crawling out of the wood work at an alarming rate to try and grab the headlines by calling the bottom of...
Is UK Commercial Property Back In Favour?
News that UK commercial property company Minerva has agreed to be takeover, in principle at least, by a Dubai based company has sent the sector into orbit. After months of bad news and doom and gloom this seems to have caught the eye of 'bottom fishers' who like to pick up cheap asset after large falls. Whether the deal itself goes through, it is subject to a number of preconditions, is irreleva...Read More