How can first-time buyers climb onto the property ladder?
A report yesterday suggested that the UK is fast becoming a property rental economy rather than a property purchase economy, something which has been in place for many decades. There are now great concerns that first-time buyers are effectively being priced out that the UK property market due to an increase in property prices and a lack of liquidity in the mortgage market. So how can first-time buyers climb onto the property ladder?
There are many different options available for first-time buyers although unfortunately they either mean years of saving or some form of shared equity with a housing association or other third party. At this point in time even the average UK house price is well beyond the means of many first-time buyers and even if property prices come down, there may be a reduction in liquidity in the mortgage market which will again block their route to entry.
It is ironic that the UK situation has now turned full circle in direct contrast to the US situation where many people had preferred to rent rather than buy. There is very little assistance that the UK government can offer in the short to medium term and ultimately first-time buyers are now at the beck and call of market forces.
Property investors suffer as capital gains tax increased
The new coalition government has confirmed that capital gains tax on property assets will be increased from the current flat rate of 18% with speculation the new figure could be as high as 40%. This is a bitter blow for the UK property sector which has been under pressure for some time now but it is believed that the additional income created will be used to increase the income tax threshold to th...Read More
Land Registry reports small rise in UK house prices
The Land Registry has today issued a report suggesting that UK house prices increased by 0.3% in August which was around half of the rise seen in July. According to the report the average home in England and Wales is now valued at £167,423 with annual growth falling from 6.8% in July to 6.7% in August. These figures on the surface appear to be very much at odds with recent property reports sugges...Read More
Why are first-time buyers not flocking back to the property market?
With UK homes apparently now three times more affordable for first-time buyers than prior to the credit crunch, is it right to ask the question why first-time buyers are not flocking back to the UK property market?
The substantial reduction across the UK property market has prompted suggestions that first-time buyers are looking towards properly again although the figures so far do...
Is Minerva now in play?
A 50p a share cash offer for UK property company Minerva has certainly put the cat amongst the pigeons in the UK property sector. Only 16 months ago the company was flying high attempting to fight off a £1.60 share cash bid which ultimately fell through. However, since then the company has struggled and the shares have been as low as six pence during this very difficult economic period in the UK....Read More
Rightmove hopeful on increased Internet activity
While property search website Rightmove saw pre-tax profits fall to £18.2 million for the first half of the financial year, from £19.7 million for the sale period last year, the company appears to be fairly optimistic in the short, medium and longer term. Despite the fall of 8% in pre-tax profits there have been a record number of visitors to the company's website in August and this has given th...Read More