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".
False boost to the UK property market revealed
It has been revealed that the number of first-time buyers in the UK hit a two year high last December amid the impending repeal of the stamp duty concession which gave buyers the chance to save up to £1,750 on a purchase. Lenders have revealed that nearly 25,000 mortgages were approved for first-time buyers in December 2009 which was 26% up on November. While these figures may be slightly boosted...Read More
Hips delayed until August 1st
The government has put the introduction of its controversial home information packs (Hips) scheme back by two months until August 1st.Communities secretary Ruth Kelly announced the delay, which follows a complaint lodged at the high court by the Royal Chartered Institute of Surveyors (Rics) in the House of Commons to howls of laughter from opposition MPs.The Conservatives say the government is in...Read More
The Royal institution of Chartered Surveyors predicts 50,000 repossessions this year
In direct contrast to the figures released by the Council of Mortgage Lenders (CML) the Royal Institution of Chartered Surveyors (RICS) has today revealed a forecast that 50,000 homes will be repossessed in the UK this year. This is significantly less than the 75,000 forecast by the CML and places yet more confusion into the UK property market. Interestingly, the figure of 50,000 repossessed homes...Read More
How have house prices performed since the millennium?
Information gleaned from the influential Nationwide property survey seems to suggest that the price of a house in the UK has increased by almost £90,000 since the turn of the century! It is believed that the average property in the UK cost around £75,000 in the year 2000 and has since increased to around £162,000, even taking into account the recent downturn in property prices. This is an as...Read More
Is renting a viable alternative to a house purchase?
As the UK property market continues to spiral downwards, despite the attentions of the UK government, many people are now looking towards the rental market which has also had its fair share of troubles in recent times. Rental values have fallen in line with house prices and there are now some very attractive lease and rental options open to many areas of the UK. So is renting a viable option in th...Read More