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.
Is the buy to let market in freefall?
Many estate agents across the UK are reporting a significant increase in the sale of buy to let properties and a number of landlords who are on the verge of "calling it a day". The demise of the buy to let market was reflected in the collapse of Bradford & Bingley which is the leading but to let mortgage provider in the UK. Unfortunately, the more properties which go on to the market the more pres...Read More
Should we believe the Nationwide forecast for the property sector?
Despite the fact that many analysts and economists are downbeat on the prospects for the UK economy in 2010, today's Nationwide report on UK property sector seems to offer a very different opinion of the prospects for the UK. The report suggests that UK property prices will increase by around 10% in 2010 which is something many people do not agree with. So who should we believe? There is no dou...Read More
House Prices Forecast To Rise By 30% Over Next 4 Years
In the middle of the doom and gloom of a major recession it can be very easy to bandy around some headline grabbing numbers and pull in interest from the property sector. Whether the forecast 30% bounce in house prices between now and 2012 actually materialise is a different matter but the Centre for Economics and Business Research (CEBR) seem to think this is a strong possibility.
Hips face renewed criticism
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Will UK property funds ever be the same again?
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