Is there oversupply in the UK property market?
A number of property surveys in relation to the UK property market have highlighted the fact that the UK market is moving into an "oversupply" situation. When you also take into account that many buyers are now sitting on the sidelines waiting for prices to fall further, the situation could become worse before it gets better. So why have more people decided to sell their property?
There is no doubt that the hard-hitting press headlines regarding the UK economy and a potential double dip recession have upset many people. Just when the vast majority of households in the UK began to see light at the end of the tunnel the UK government stepped in with significant budget cuts and tax increases in the short-term. As a consequence, and bearing in mind that the global economy is beginning to struggle, more people are now looking to sell their property at a lower price than they may have achieved just weeks ago, with buyers now very much in the ascendancy.
Liquidity issues within the UK mortgage market are also causing concern with many first-time buyers effectively priced out of the market due to the need for a significant deposit. Until this situation changes we are likely to see further downward pressure with more and more buyers holding back or pushing for "unrealistic prices".
Government acts on empty property tax
Over the last few months there has been a rather strange phenomenon in the UK property market whereby those with empty properties have still been forced to pay business tax at the full rate. In many circumstances businesses have been forced to demolish buildings to avoid the tax which was crippling many and causing serious cash flow problems. However, the government has today announced a one-year...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...
ITV report suggests 3 million people in the UK are in negative equity
Only yesterday it was confirmed by the Council of Mortgage Lenders that in excess of 900,000 homeowners in the UK have been caught by the negative equity trap. However, a report by ITV today suggests this figure could be as high as 3.5 million homeowners which would represent around one third of all homes in the UK. While the figure of 3.5 million is probably towards the top end of the "real situa...Read More
House prices fall in England and Wales
The average cost of a property in England and Wales fell by 0.1% during July to £158,700 with buyers deciding to sit on the sidelines for the time being. At a when time estate agents have reported a 1.3% drop in the number of new buyers showing interest in properties there has been a 3.6% increase in the number of properties for sale. As a consequence, many experts believe that downward pressure...Read More
Fears over fire sale of UK property
Fears are growing today regarding a possible fire sale of UK property assets as the UK government looks to increase capital gains tax charges. It is believed the government will increase the flat rate from 18% for non-business assets to anywhere in the region of 40% to 50%. It is unlikely that the capital gains tax changes would come into effect immediately and we could see a fire sale of UK prope...Read More