Londoners can now rely on hire-purchase plan to hop onto property ladder
March 15, 2009
The mayor of London, Boris Johnson announced a hire-purchase scheme that will help many families on the subject of property ladder.
A £42million plan for 500 flats has been devised, wherein the occupiers or families residing in rental flats have to shell out eighty percent of the total market price of the flat as rent. They have another option to opt for, incase they want to save on the extra money they are paying as rentals. They are free to purchase the flat any time at their convenience and the amount they have paid earlier as rent shall be subtracted from the total cost of the possessions.
Though the scheme sounds feasible it comes with a slight twist. The twist is that the buyer has to deposit a sum of £40,000 before making an offer within the zone.
Mr Johnson stated that this was done to bring down the housing crisis. The money earned is devoted for the economic development of the city.
Mr Blakeway, housing director of the Mayor said that they expected the worth of the properties to maintain with other homes but was helpless at the increasing rates of the flats.
Tony Tavers, Economic expert commented that the problem was the homes built earlier were for social housing and that there was a tremendous gap in the market.
He then concluded saying that it was the only way to overcome the problem especially when there is a slowdown in the construction industry.
Popularity: 8%
Property development faces recession
March 14, 2009
With the reports of bad credit, property market is facing gloomy days. Every industry has to face ups and downs; the property market too is facing the crisis. In the UK, there are people who can do well in terms of finance in residential as well as in commercial developments. All one needs to know is the manner in which to play the market and get the best deal available in the market.
If you are aware on how to invest wisely, then investing your money in the UK or other country is really worth. You can earn enormous profits by investing in property. There are developers and investors in UK, who are proving that playing in the market with a significant amount gets a support from UK development finance. They get a 100% return from the development finance, which proves their point.
Property development, promises that investing in the residential and commercial development finance will yield high returns. A successful investor will find the right location and will invest with the right property developer finance in the UK. There is still a great margin of returns in property development despite the news going rounds that obtaining a loan is difficult or the interest on the loans is too high.
Popularity: 10%
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: 13%
Increase of rental properties have resulted in fall of rent values
March 3, 2009
A new research on property in the UK showed that as the number of rental properties available in the market has increased, there has been a decrease in the rents on these properties. One of the leading property search engines in UK revealed that there was an 88 percent increase in the number of properties that were listed to go on rent. The figures showed that from last December’s 28,489 properties, the number jumped to 53,547 in January.
The group said that the cause of the increase in rental properties was because people were finding it hard to sell their properties and opted to rent them out instead. This increase is what has resulted in the decrease of rents because landlords are competing for tenants. Research has shown that from a rent of £ 950 a month last May, rents have dropped to £ 795 this February.
It was also reported that since the beginning of the year, the new rental properties coming into the markets were increasing drastically and this caused rental values to decline from mid 2008. Experts say that values may drop further should supply of properties continue to exceed demand. Although there is still a high demand for tenants, it is not enough to keep up with the number of new properties that are coming into the market.
Popularity: 15%
New property in the UK is now ‘more reasonably priced’
March 2, 2009
According to the recent figures available, an increasing number of prospective property buyers in the United Kingdom are considering purchasing a new home because of the dip in property prices.
As suggested by the data, in the United Kingdom, the cost of new-build homes fell by 2.1% in the month of January. This takes the annual decline rate down to 13.1%, which is the largest ever-recorded annual price fall.
To counter the economic downturn and falling property prices, most developers are now marketing and offering new homes at prices that have been the most affordable ever seen for over three years in the United Kingdom.
Additionally, based on figures released last week by the Council of Mortgage Lenders, lending has almost fallen to an 8 year low.
However, the drop in property prices is not bad news for everyone. Northern Ireland’s social housing tenants who want to live in the few mixed areas have something to cheer for by the decline in property prices.
More than 90% of Northern Ireland’s public housing remains segregated after the Good Friday agreement, some 11 years back. The houses or estates are marked out as either Protestant or Catholic by murals and flags.
Popularity: 8%
Latest Property Headlines
- Beautify your Bathroom
- Maintenance of the house
- It’s all in the detail
- Areas of the house to invest in
- New site for Morrisons
- The 2010 election
- Is Spring the best time to sell houses?
- Alternative energy for your house build
- Finding the right bargains
- Will the property market effect your election vote?