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.
Help to buy scheme extended for new homes until 2020
17/03/2014 House builders have been handed a boost by the government today as the chancellor announced that the first stage of the help to buy scheme will be extended until 2020, allowing a further 120,000 houses to be built. The first part of the ‘Help to Buy’ scheme is specifically aimed at helping people buy new build homes, and was originally expected to end in 2016. However, thi...Read More
UK landlords turn positive on future
The UK buy to let market is apparently bottoming out if UK landlords are to believed, with a forecast that portfolios will rise by an average of 0.8% over the next 12 months. This is a significant movement when you bear in mind that property prices have been falling for the last two years and rental income has also been decreasing for the last 12 months or so. So what is happening at the moment?
More house price gloom in February
The Nationwide Building Society survey into UK house prices has revealed a further fall of 1.8% in February as lower interest rates and lower house prices have a minimal effect on the UK property market. The average UK home has fallen in value by over 17% during the last 12 months which equates to £31,000 for an average price in the region of £147,000. More alarmingly for those who acquired thei...Read More
Children's damage knocks thousands off house price
As many as one in ten parents claim that damage caused by their children has reduced the value of their home by an average £2,000.A survey conducted by Direct Line found that six out of ten parents with children under five said their little darlings had somehow damaged their home, with spilt food and stains on carpets being a concern for 78 per cent of parents.Some 76 per cent said their children...Read More
First Direct withdraws mortgage deals
First Direct has become the first of the UK's major lenders to withdraw its complete range of mortgage products. In a statement released today, the company announced it was suspending all new lending on a temporary basis. The decision has been taken following a five-fold increase in demand for its products, it is claimed, with analysts attributing the rise in applications to the competitiveness of...Read More