Students force up property prices
Despite the fact that the students of today are often associated with very little income, often spendthrift and looking to save as much money as possible, it seems as though a number of university towns in the UK have benefited from the growing influx of students. Figures in the press this weekend show that students in six out of ten university towns have forced the price of property up by around 30%.
The largest recent increase in property prices was seen in Aberdeen where prices have appreciated by around 40% since 2005, a period which has seen the number of students in the city rise by 54%. This particular pattern has been replicated across many "student cities" in the UK and with more and more people now looking to rent as opposed to buying in the short-term there is potential for the situation to get worse before it gets better.
It will be interesting see how UK mortgage companies react to this new trend which is in direct comparison to the US model where many people are now moving away from the rental market and looking to purchase property. Whether this is a short-term change in the long-term UK trend remains to be seen but there are many reasons as to why it could continue for the foreseeable future.
Why does the Land Registry property report differ from others?
As the Land Registry property report for May shows a further 0.2% reduction in UK property prices, against a 2.6% increase and a 1.2% increase as suggested by Halifax and Nationwide reports respectively, many people are totally confused as to what they should and should not take into account. So why does the Land Registry report always seem more negative than the likes of reports by Halifax and Na...Read More
Is the housing market beginning to turn down?
The Nationwide Building Society has today revealed that UK house prices increased in value by 0.5% in November with signs that demand for UK houses is starting to fall. While the figure could be slightly misleading because the winter period is often a very quiet period for the housing market, many experts believe that 2010 will see further falls in the cost of UK property. So should we be alarmed?...Read More
First-time buyers vacate property market
It has been revealed today that the percentage of first-time buyers on the property ladder has fallen to a three-year low of just 35% in April, down from 39% in March. This will come as no surprise to those who follow the mortgage industry where liquidity for first-time buyers has been difficult to obtain for some time with more and more mortgage company's looking for larger deposits. In realit...Read More
Is the UK property market on the verge of collapse?
Today's revelation that the average property price in the UK fell by £6000 in September, compared to August, was a bitter blow for those hoping that the UK market would remain strong in the short to medium term. If we are seeing significant falls in the cost of property in the UK even before the vast majority of government austerity measures have kicked in, the situation in the short term does no...Read More
Scottish Widows And Legal And General Looking To Property Derivatives
While they are both looking at the property derivatives market for different reasons, it is interesting to see that major players such as Scottish Widows and Legal & General are taking a keen interest. A derivative is simply the option, but not the obligation, to buy or sell an asset at a future date in return for a ‘margin’ payment. The right to take up the option is decided by the...Read More