Is the UK turning into a rental economy?
Despite the fact that the first choice for many in the UK property market is to buy a property for the future, there are now signs that more and more people are looking to rent in the short to medium term. The Chartered Institute of Housing has today issued a report suggesting that those on incomes between £12,000 and £25,000 are stuck in between being eligible for social housing and been able to afford their own property.
In what has the potential to become a self-fulfilling prophecy, the fewer people who can afford to acquire their own property the more pressure this will place on the rental market and the more properties will come under the "buy to let" banner. This is despite the fact that many buy-to-let participants have fallen by the wayside after the credit crunch and the worldwide recession. However, there is also the UK phenomenon of a housing shortage which has been ongoing for decades and many people believe is one of the reasons why UK property is so expensive.
Despite the fact that the UK government recently announced a number of incentives for local authorities to build affordable housing this will take some time to kick in and more and more people will be forced to look at renting property before acquiring their own property in years to come.
Scottish property market in short-term bounce
The Scottish property market produced a very surprising scenario this week with news from the Council of Mortgage Lenders that mortgages agreements for first-time property buyers increased by 18% to 4,700 in the second quarter of 2010. The total of these mortgage arrangements was £419 million which was again a significant increase of 27% against the first quarter of 2010. The situation for tho...Read More
Crunch hitting first time buyers
First time buyers are finding it increasingly hard to get on the housing ladder, one of the UK's largest homebuilders has warned. Latterly, the credit crunch has forced banks to tighten their lending criteria, meaning that it is currently much harder to secure home loans than before. First time buyers are the group most likely to suffer, with lenders now typically asking for deposits of 25 per cen...Read More
Are UK banks controlling the UK property sector?
Amid signs that the demand for UK property is bubbling below the surface, there is growing concern that UK banks are holding back the UK property sector. Despite the fact that there are now around 66% more mortgage arrangements available than at the start of the year, these financial arrangements are not within the grasp of many first-time buyers. So what is happening in the UK mortgage market?...Read More
Property buyers holding off until election
In a sign of the times estate agents have warned economists and analysts that homebuyers appear to be holding off in the run-up to the general election. This warning from the property sector would seem to confirm recent surveys which show that house prices appear to have stagnated after a drop in activity within the sector. In reality this particular type of strategy by property buyers is under...Read More
Edinburgh set to lead UK housing market higher
Edinburgh will be the unlikely setting for the U.K.'s first property sector year-on-year increase when figures are announced later this week. The average home in Edinburgh now cost in the region of £212,000 which is a surprise 6% increase compared to this time last year. At a time when the Scottish economy is under real pressure, from a number of avenues, it seems that property in Scotland is sti...Read More