UK property market is declared as one of the worst in Europe

February 29, 2012 Leave a comment

uk property market is declared as one of the worst in europeThe UK property market has taken a hit as it comes to light that due to high inflation, houses prices have had their value wiped. It has been estimated by the Royal Institution of Chartered Surveyors (RICS) that since 2007, a third has been taken off the real value of UK homes. However, when we take away inflation, the biggest falls can then be seen in Spain and Ireland, while in contrast France, Iceland and Norway came out on top.

According to RICS, the UK property market suffered a 5.7% decrease in house prices. This may not seem a lot in comparison to one country that came out on top, Iceland, which reported a 33% fall from 2006 to 2010. However, according to the Halifax monthly index, UK prices have plummeted by 19% from August 2007 to November 2011. The average house price now stands at £160,907 compared to £199,612 in November 2011. Read more of this post

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Where to purchase overseas property in 2012

February 28, 2012 Leave a comment

overseas property purchaseWhen planning an overseas property purchase, it is important to be clear about your motives for investing. In particular, you must decide if you will be purchasing a property that will also be used as a holiday home or are buying purely as an investment, as this will significantly influence your choice of property.

Assuming that your intention is to invest purely for profit, where are the best places to buy in 2012 ? The answer to this question really depends on your attitude to risk.

If you prefer to take a conservative approach to property investment, then countries close to  home, with well established property markets and robust economies represent the best option.   The continuing problems in the Eurozone mean that many countries on the continent, such as Spain which has serious issues with over supply, will not be the best locations to invest in this year.  However France remains an attractive option. Read more of this post

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MoD cuts could force army families to leave their homes

February 27, 2012 Leave a comment

The Ministry of Defence is considering proposals to cut short the period of time for which married soldiers and their families are entitled to subsidised military accommodation. The new proposals would see soldiers and their families leaving their army homes after a period of eight years, and having to find housing in the private sector.

Currently, subsidised housing for soldiers and their families is provided for the duration of army employment, however a review of military cuts is proposing cutting military subsidised housing rentals after eight years and forcing military families to look for accommodation in the private sector. A former head of the army told The Times, that although he understands the needs of the MoD to cut bills, financial help in getting military families into the private sector should certainly be made. Read more of this post

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France still is a good country to invest in property

February 24, 2012 Leave a comment

France still is a good country to invest in propertyFrance is still perceived as a safe haven for property investment as the second biggest economy of the euro zone manages to stick to economic growth despite the general uncertainty. Last year the economy grew by 1.7 percent and the predictions for 2012 are positive too. Real estate investors from the UK appreciate this stability.

The numbers confirm this impression. Compared to January 2011, British purchases on property have more than tripled in France in January 2012. The exchange rate between the sterling and the euro is seen as a major factor of this increase in sales, but the above-mentioned good economic outlooks of France are also responsible for the confidence in the French market. Read more of this post

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Middle East investors choose London property

February 23, 2012 Leave a comment

Middle East investors choose London propertyMiddle East investors are seeking refuge in the London property market due to the region’s political instability. It is believed that they currently account for 9% of foreign investment in London’s newly-built property market, as opposed to 2010 where they only made up 5%. In total it is believed that all foreign transactions on new builds amount to about £1.25bn for the London property market.

Associate director at JLL Ben Stroud believes that London is seen as a ‘safe haven’ due to the revolt against leaders in Libya, Egypt and Tunisia as well as protesting in Oman and the ongoing unrest in Bahrain. Middle East investors can rest assured due to the political stability in the UK as well as investing in property which can potentially reap high revenues. Last year Jones Lang LaSalle reportedly built six new apartments for a Middle Eastern family with a price tag of £22m. However, it has been noted that the largest amount of investment still comes from Asian buyers. Read more of this post

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Is 2012 a good time to invest in student property?

February 22, 2012 Leave a comment

By Lindsay Blair

Is 2012 a good time to invest in student propertyWhile many people predicted that an increasing number of students would rethink their futures as a result of the hike in tuition fees to £9,000 last year, a survey by FreshStart Living found that three-quarters of young people would still consider living away from home despite the higher education charges.

Even more surprising was the result that more than half of students questioned (58 per cent) said the increased cap on tuition fees had not affected what they would be willing to pay for rented accommodation in prime locations.The results of the insightful survey suggested that student housing is still a hot topic and for many investors, a lucrative deal that could see high returns from term to term. Read more of this post

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Owner occupancy proportion lowest since Thatcher’s era

February 21, 2012 Leave a comment

Government reports show that the proportion of owners to occupants has dropped to 66%, the lowest it has been since Thatcher declared that Britain would become ‘a property-owning democracy’ in 1988. The already static housing market is expected to suffer again later next month as the stamp duty holiday comes to an end. The holiday only produced a small frisson of movement as a 14% increase of mortgages were taken out by first time buyers.

The situation isn’t expected to improve over the coming years. The National Housing Federation has estimated that the average first time buyer age is expected to increase from 37 to 43, whilst back in the 1980’s it was 25. The dream of home ownership for many is becoming unlikely for many, as the proportion of house prices to earnings for first time buyers has almost doubled to 4.4 times salary.

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Housing market prices rise surprisingly fast

February 20, 2012 Leave a comment

Housing market prices rise surprisingly fastThis February, housing prices in the UK have risen by 4.1%, which is the highest monthly rise in 10 years. This increase comes as a big surprise given the unstable economy and political trouble. In January, prices still fell by 0.8%.  Experts claim the recent rise is due to strong demand from cash-rich market sectors where demand exceeds offer.

London is one of these cash-rich market sectors. Its property market cannot supply the demand for flats and houses asked by wealthy buyers. Foreign investors represent an important part of that demand which results in higher prices. London prices are now only one percent off their all-time high. Read more of this post

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Housing benefit cuts leave families in central London without homes

February 17, 2012 Leave a comment

Housing benefit cuts are starting to have an effect on families who live in central London. Whilst a council officer recently declared that ‘to live in Westminster is a privilege, not a right’, primary schools are starting to see the disruption that these changes have brought about and there is a fear that this new cap will create ‘benefit ghettos’.

The housing benefit cuts were initiated by the government in order to save money, as well as growing public concern at the amount of tax payers’ money being spent on housing benefit. The cap will not affect those in council housing and will only affect houses in the private rental sector. Waiting lists for council flat and houses are already very long and such a measure will mean an even higher demand for such housing. Benefits for housing will be capped at £250 per week for a one-bedroom property and a £400 a week for a property with four or more bedrooms. However, such properties within this price range are impossible to find in Westminster. Read more of this post

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Whitehall to announce savings of £130m on property spending

February 16, 2012 Leave a comment

Whitehall to announce savings of £130m on property spendingAfter pledging to cut spending, Whitehall is set to announce it has cut £130m from its annual property spending since April. This reduction in spending is part of Whitehall official target of cutting property spending by £400m annually. However, much can be done to better manage Whitehall’s property assets as examples of under occupied or vacant government property abound.

Francis Maude, Cabinet Office minister, will announce on Friday that the government has been able to cut its annual property spending by £130m. As part of the overall drive to cut spending, the government’s property spending is being significantly reduced.  Mr. Maude has set a target of reducing property spending by £400m per year by the end of the decade. In order to achieve that goal, the government is taking a series of measures.

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