Property market in UK finds path to recovery
May 8, 2009
The property market all over the world experienced a set back due to the economic recession. Though property is still suffering worldwide, the UK property market has something to smile about as it begins it journey towards recovering slowly. According to recent British trends the recovering process of the property market in the UK has not only been small, but has also shown great amount of perseverance as stated by Graham Norwood, the property correspondent on Business 24-7.
Mortgage products have been made available to UK home buyers on a large scale. These products are a sign of the recovering process of the property market. Besides this, the property prices in UK have also seen a rise of almost 0.9 per cent, which is very good for the property market.
Home prices in different parts of the UK, though declining, have been declining at a very slow rate. North Ireland, one of the worst hit places during the property crisis has seen great amount of improvement as the home prices have now dropped by 4.1 per cent, compared to the 8 per cent fall that it had experienced in 2008.
Many other locations in UK have been experiencing similar improvements, which has given the property market hope to get back on its own feet.
Popularity: 47%
UK investors hope recovery in property market
May 4, 2009
If recent reports are to be believed, then UK property investors are expecting an improvements in the property market. This will be done only when the market stabilises.
The overall economy and its impact on the British property investment have been studied by the consultants from the API.
Due to recession, this year’s rents will yield low income. Aberdeen Property Investors (API) has also claimed that any type of recovery, at any point of time will be a good sign not only for the property owners but also for the property market.
Many foreign investors are interested in the UK property market. This is because; the price of sterling has dropped down. The firm stated that such movements will prove to be a great help for the property market. The company further claimed that it is usual if there is a strong recovery of market correction.
The company said that due to global economic crisis, there has been a downfall in the property market. This one is the worst since 1980. In terms of financial crisis, the present year has seen a terrible fall.
Lombard Street has studied the market and has concluded that it will require at least a year for bottoming out.
Popularity: 23%
Sales go up. Thanks to the low property prices!
March 13, 2009
England and Wales witnessed a fall in the property prices costing £157,000. The drop was 0.8% on January which was as low as ten percent in the last year.
17% potential buyers registered themselves with the estate agents and there was a rise in the sales by 35.9 percent.
With the downfall of prices and interest rates, the buyers are attracted for a bargain but, securing the mortgages for the desired property proves to be little difficult for the buyers.
Mortgage lending saw a fall of over 60 percent in the month of January. Figures indicate that it was only a tenth as compared to last year.
In January, mortgage advances saw a downfall of £13.64 billion, a fall in the record since July 2001.
As per the Bank of England, net mortgage lending has gone down from £1.79 billion in December to £690 million. Since April 1993, this amount was the lowest monthly total.
The number of people who would go for remortgaging went down to a significant drop of 34,000. This phase even continued throughout the month of January.
The existing low rate of interest is the reason to be blamed for the low figures of remortgages.
People are discovering that putting up with the lenders standard rates is a feasible option. They feel that instead of going for a new mortgage, they should revert to the old idea itself.
Nevertheless, prospective buyers are attracted by the bargain and are seen in the market once again.
Popularity: 12%
UK Commercial property falls again
February 12, 2009
Investment Property Databank (IPD) has reported that UK commercial property has fallen down tremendously in 2008. Reports have revealed that UK’s Quarterly Property Index has shown a drop of 26.4% in the values of commercial properties. This has been the maximum fall since 1987.
The value of shops, warehouses and office buildings are all in line with the levels of 2001 December. The IPD further stated that almost six years of growth have been lost due to the successive falls in the last 18 months. Another report revealed that the values had dropped down by 14.4%. This drop in property value was compared to last year’s quarter for analysis.
Ian Cullen the co- founding director of IPD stated that, in reality they had never tracked the capital decline at such levels. Even the total returns on the investments have fallen down by 13% in the last quarter and by 22.1% overall as compared to the other three months.
Many investors have withdrawn from the commercial property market, which has led to delays like funding. HSBC further claimed to have made a profit of £250m after buying back the London headquarters from some Spanish property company. However, it is the commercial property values that have shown greatest fall.
Popularity: 11%
Do it yourself or have a letting agent take care of it?
December 17, 2008
In the current housing market many people are finding that they can’t get themselves a remortgage when their current fixed rate deal expires. This means they’re left with the option of selling their house, or if they can, letting it out.
Of course, when it comes to letting out a house you’ll probably need to make some changes to ensure that it’s rentable, such as new carpets, getting the boiler certified etc. When you do this, you can either get the work done yourself, or you can use a letting agent. Using a letting agent means you’ll end up paying a management fee, usually around 10%, but it has a number of advantages.
A letting agent will liaise with the tenants for you, so that you’re never bothered about problems around the house such as maintenance. A letting agent will be responsible for collecting the rent, so that you don’t have to do it, and they’ll provide you with invoices for your tax.
Finally the letting agent will arrange for any development or repair work that needs to be done on the house, such as if the roof needs fixing or a door needs repairing. This takes the worry from you, all for 10%.
Popularity: 13%
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