Bovis concerned about UK housing market
Bovis, one of the UK's leading house builders, has today gone public with a number of concerns regarding the short to medium term future of the UK property market. While the company reported a return to profitability, with £3.5 million surplus for the first six months of 2010, and an increase in both house prices and housing sales, there was much mention of the government's spending cuts and tax rises.
The company has seen a 3% increase in the number of sales in the first half of 2010, compared to the same period last year, as well as a 3% increase in house prices. Unfortunately, the company also reported a significant shift in sentiment in the sector after the election and the June emergency budget. This concern appears to be growing as the prospect of a potential double dip recession, however small, continues to catch the eye of financial observers. It will be interesting to see how the UK property market performs in the latter part of 2010 with many suggesting that despite a fairly buoyant first half, the sector could well be flat for the full year.
This is the first real negative comments on the UK property sector for some weeks now although in all honesty it was not totally unexpected.
FSA set to take over regulation of sale and rent back agreements
As the UK recession continues unabated more and more homeowners, especially those of an older age, have been forced to consider sale and rent back agreements on their homes. The fact that the schemes often ensure that the properties are acquired at a sub-market price in order for the tenant to remain in the property, often until their death, has caught the attention of the regulators. This is an i...Read More
Student flats scam proving a disaster
While the life of a student can be one of small budgets and wafer thin expenses, an ongoing student flats scam is proving a disaster for many. Fraudsters are using the Internet to attract students to "cheap properties" and asking them to forward their bank details or send money to secure a deal for the property. However, many students have found out these properties do not actually exist and when...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
RBS looking to offload £15 billion of property assets a year
As the long-term goal of unwinding Royal Bank of Scotland's distressed loan book continues the company has revealed plans to offload upwards of £15 billion of property assets a year for the foreseeable future. The company will also be tailing off the vast majority of property loans in the UK and Europe which will unwind the company's loan book going forward, although there are fears of more write...Read More
House Prices and Mortgage Costs to fall
There is increased downward pressure on house prices as the ratio between potential buyers and the number of properties on sale gets wider, according to a study. And a separate study has revealed that mortgage payments worked out as a percentage of monthly disposable income has dropped to a 15 year low. Property analyst Hometrack, who conducted the study into house prices, say that prices...Read More