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.
Land Securities signals upturn in UK commercial property market
Land Securities, one of the UK's leading commercial property companies, has today issued a very interesting and positive note on the state of the UK commercial property market. The company has bounced back from last year's troubles and significant property write-offs and today confirmed profits came in at just over £1 billion against a loss of £4.77 billion last year. The company has cited a...Read More
Why is the UK property market so fragile?
As we touched on in some of our earlier articles today, the UK property market has on the whole recovered over the last 12 months but the degree of improvement is very varied across different areas of the UK. There is growing concern that both a lack of liquidity in the mortgage market, despite this being a problem for over a year now, as well as a reduction in consumer confidence could well hit t...Read More
Nationwide predicts another interest rate rise
Despite February's interest rate level not having risen, financial experts have predicted that homeowners could still see an increase very soon.Economists at Nationwide building society have forecast that the bank will increase the interest rate in order to bring it in line with house price inflation. Nationwide figures show that the average house price is has increased to £174,706 - a rise of £...Read More
The buy to let market springs to life
Paragon, one of the major buy to let mortgage providers in the UK, has confirmed the signing of a £200 million funding arrangement with Macquarie Bank which will see the company become more prominent in the buy to let mortgage market again. Despite the fact that Paragon has always had a long-term outlook on debt and mortgage funding it was forced to effectively going to "hibernation" during the U...Read More
Surprise jump in property prices
Property expert Rightmove has today released an update on the UK property market which apparently shows that property prices were pushed up by 3% in October despite the fact that the economic backdrop is difficult to say the least and the mortgage market is starting to slow down. So how can we explain a 3% increase in asking prices for properties in the UK during October? The apparent 3% increa...Read More