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.
Optimism in the UK estate agency sector
The news that US distressed investor specialist Oaktree is close to signing a deal for a 35% share of UK estate agency chain Countrywide has given some investors in the sector food for thought. The company was acquired for over £1 billion during the height of the UK property boom although it is rumoured that Oaktree would be investing just £75 million of fresh equity for a 35% stake. However, as...Read More
Will City rents increase in 2010?
A report by property consultants King Sturge claims that the rental values will increase by up to 10.5% in the City of London in 2010. While this is obviously a massive U-turn compared to the 40% collapse in rental values during the recession there is some concern about the basis upon which these forecasts have been calculated. The consultant seems to be ignoring the fact that a number of promi...Read More
Persimmon positive on 2010
UK housebuilder persimmon has confirmed that the outlook for 2010 is much more positive than 2009 with £500 million in sales already taken for next year. The order book looking forward is very healthy and the company is cautiously optimistic about the short, medium and long-term situation in the UK. However, there are potential problems on the horizon.
Persimmon, while being upbeat...
Short-term dip in UK housing market
Figures from UK Land Registry are disappointing on the face of it with a 0.1% reduction in UK property prices between July and August. However, when you consider the traditional summer lull which occurs nearly every year, the situation is perhaps nowhere near as bad as some people would have you believe. The average price of a property in England and Wales is now £155,968 and thankfully the annua...Read More
Young renters have highest risk of identity fraud
05/05/2015 People who are in rented accommodation face a much higher risk of having their identity stolen, according to credit reference agency Experian. Tenant’s details usually work out a lot easier to steal, thanks to shared hallways and easily accessible rental properties. People living in rented accommodation are also more likely to use mobile phone and online services more often, an...Read More