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.
UK rent costs to increase faster than house prices
23/12/2015 Surveyors have warned that the cost of renting a property in the UK could rise faster than house prices over the next five years. The Royal Institute of Chartered Surveyors (Rics) have released research that shows in five years time tenants could be paying at least 25% more than they are paying now thanks to the governments moves to discourage buy-to-let landlords. The Governm...Read More
Will local authorities allow more new developments?
As we have covered in a number of articles of late, there is still a crisis in the UK property sector with the number of homes being built on an annual basis still not covering the increase in the UK population and the number of households. As a consequence, many people are now suggesting that local authorities need to incentivise local residents and those involved in the "property approval chain"...Read More
Annual Housing Transactions Reach One Million
06/02/2014 A report from Halifax has suggested that the housing market is continuing to exhibit an upward trend, as transactions in 2013 reached one million for the first time since the financial crisis in 2007. Home sales rose for the ninth consecutive month in December to 103,040, which is 30% higher than in December 2012. Additionally, the number of mortgage approvals, which is a key fact...Read More
UK house prices rise by 0.2% in April
The average UK house priced increased by 0.2% in April leading to a rise of 8.5% over the last 12 months. However, on a regional basis there are major variations on the 8.5% annual increase and not every housing market in the UK is experiencing increased demand! The report by the Land Registry shows that Brighton and Hove has the highest year on year increase of 16.8%, Bristol is next on 15.9%...Read More
UK government scrap HIPs
The UK government has today announced plans to scrap Home Information Packs (commonly known as HIPs) which obliged sellers to provide certain information about the property before it could be sold. However, even though the idea of Home Information Packs was well-founded and respected by some in the industry there was a feeling it was nothing more than an additional cost to UK property sellers. The...Read More