In November asking prices for houses coming to market have reduced by over 3% this takes the average asking price of property down by a over seven thousand pounds. This fall in asking prices in real terms has been the largest that Rightmove has seen since 2007 and the start of the economic down turn. Many blame the situation with the Euro as a key reason that sentiment and there for house prices are taking a turn for the worst. All this tailored with a 13% reduction in new vendors really highlights the population’s new aversion to large financial decisions and commitments.
Property market welcomes £4 billion pledged by government to kick start developments
November 29, 2011
The property market has been desperate for new build housing stock and assistance for first time buyers. The governments announcement that it will back the proposed new-build mortgage indemnity scheme coupled with the 4 billion it plans to invest to kick start stalled developments means Christmas has come early for the property sector? Well it is good news but is it what they really want? Developers, house builders, main contractors and surveyors are all keen to see a sensible return to 95% loan to value mortgages. Once home buyers can easily secure their dream homes with a 5% deposit the housing market will open up. This will really assist the UK’s economic recovery as it will increase employment in the property and construction sectors.
Mortgage market stabilises at new low levels
November 14, 2011
A report from the Council of mortgage lenders has shown that over 48000 mortgage loans totalling over seven billion pounds where secured in September. Good news was that first time buyer’s loans raised by one percent in September with an increase of five percent over the year even those this was from a historic high. A further encouraging figure showed a fall in the size of deposits with an average of twenty percent deposits compared to a twenty four percent deposit in September of this time last year. This coupled with lower purchase prices is increasing the purchase power of buyers.
Tenants set to spend a third of take home pay on their rent by 2020
October 30, 2011
The average tenant in the UK is currently spending nearly 22 percent of their take home pay on their rent but this figure looks to rise dramatically over the next few years. With flat share rents in London increasing at around an annual inflation rate of 5 percent the London market is of particular concern. Rental inflation simply reflects the increasing demand in the rental market against a limited supply of suitable private rented housing stock. The average first time buyer simply cannot afford the deposit require to get onto the housing market so they are trapped with ever increasing rents. While only the core of professional landlords expand their property portfolios as many amateur landlords fear the future of UK house prices.
Adverse structural survey scuppering your property sale or purchase?
October 22, 2011
Have you found your dream home only to find out it has some structural issues? Frightened by structural problems? Worried about underpinning? There are many issues that can affect properties but those affecting the structural integrity of a house or business premises are the ones that concern buyers and sellers the most. So what is the best course of action if the survey comes back with structural issues? There are two positive steps that can be taken dependant on the issues concerned. If it is a simple defect like a defective lintel most competent building contractors should be capable of pricing up a sensible structural solution. If the problems are more serious you need a good structural engineer who will be able to provide recommendations and the best value solutions. For just a couple of hundred pounds you could save thousands by avoiding unnecessary work or missing out on your dream property. Many people are very concerned about structural issues that can often be resolved for less than a year’s mortgage payments. Interestingly many people go ahead with property purchases only to find out later that structural problems exist that have been concealed. How often have we heard “we did not know anything about it until we took the render or plaster off”. Whatever the structural issue it is without a doubt sensible to get an expert opinion. Often there can be temporary fixes that might not last but can save thousands in the long term.
Royal Institute of chartered Surveyors record falls in the number of seller’s instructing estate agents
October 12, 2011
The figures shows an increase of 5% for the number of surveyors showing falls in the numbers of new instructions or properties coming to market. This is thought to be down to many vendors having concerns over new property purchases of the sales price they will achieve. Those who have the option of deferring their sale are opting for the safe bet. More sombre news was that 23% more chartered surveyors are reporting price falls in their areas coupled with a fall in new buyer interest. The further rounds of quantitative easing or printing money may have come at just the right time to avert complete disaster in the property sector.
Applications for first time buyers mortgages hits highest levels for six months
October 10, 2011
One national agent has reported an increase in the number of first time buyers applying for mortgages up nearly forty percent in the last six months. The data also showed that many have chosen to play it safe and go for two or three year fixed rate deals. This does give comfort that some of the new mortgage deals and the very minor relaxation of lending criteria is starting to filter though. Hopefully this will be reflected in actual sales to first time buyers, this is the key to unlocking the property markets. There are now some sensible two year fixed deals that only require a ten percent deposit. In recent times many first time buyers required fifteen percent deposits to get reasonable deals so that means in real terms the amount they need to save for a house deposit has dropped by a third. The key for first time buyers has not really been house prices or affordability rather the huge deposits required to get a mortgage.
15 months of falls for average UK house price
October 8, 2011
Home track have released figures showing that the average UK house price has been sliding since 2010 after rebounding slightly from the first collapse. Property experts have been predicting further falls as a buyers strike take hold. Although many still wish to buy stricter lending criteria and a general lack of available mortgage funding has keep property buyers at home. The figures show average falls of 3.5percent which reflects the changes in supply and demand. New properties coming to market are up by 22percent in contrast new buyers have only increased by 11percent. This points to faster falls in house prices as supply and demand changes. This is also reflected in the proportion of sale price achieved against asking price now running at around 90percent. The time on market is also increasing with the midlands showing an average time on market prior to an offer languishing at 11weeks.
