UK Housing Crisis

UK Housing Crisis Affects Britain

First of all, there is no surprise that a UK housing crisis is affecting the country.

Over the years, there has been a huge influx of foreign property investors that have caused property prices to rise.

As a result, this has created an adverse affect on those looking to buy their first property.

Rising house prices over the years have caused first time buyers to find it difficult to afford a property on the market.

According to Filipa Sa (senior lecturer at King’s College London) conducted research concluded;

Foreign investment does not just raise the price of expensive homes, it has a “trickle-down” effect on the rest of the market.

For her research, Filipa Sa analysed Land Registry data.

She found that there was a rise of 1 per cent in the share of property sales to companies registered overseas.

This raised prices in the local area around Kings College by 2.1 per cent.

Filipa Sa’s research was noted by the Independent website.

UK Housing Crisis

uk housing crisis
UK Housing Crisis

The Government have come under pressure to tackle and resolve the UK housing crisis.

It seems like properties have been acquired through foreign shell companies.

As a result, something must be done to resolve this housing crisis in the UK.

Therefore, it is only right that the UK Government needs to intervene.

Affecting Rent Prices?

In addition to the housing crisis, property rental prices seem to continue to rise.

The rise of rent prices will have a knock-on effect on many people’s finances living in the UK.

There is another blog entry explaining this in a bit more detail named “Rent Prices Rising“.

Do you have any views on the UK housing crisis?

If you do, kindly leave your comments below.

Lifetime Mortgages

Lifetime Mortgages

First of all, lifetime mortgages in the UK became quite the trend in recent years.

A lifetime mortgage is essentially a form of equity release.

This is attractive to the over 55’s living in the UK looking to release equity from their home.

lifetime mortgages
Lifetime Mortgages

Lifetime mortgage benefits

As a result, there are a few industries that have benefited from this occurring.

The industry sectors that have seen the lifetime mortgage benefit them are:

  • Manufacturing
  • Construction
  • Health
  • Social care

The amount of money pumped into the UK economy since the lifetime mortgage was introduced is in excess of £3 billion.

The manufacturing industry benefited the most from the equity release scheme at £1.32 billion.

Next in line was the construction industry with an injection of £349 million.

Both the health and social care sectors were boosted by £203 million.

Consequently, this money has helped generate jobs in the above UK industries and boosted the overall UK economy.

Lifetime Mortgages UK

According to Property Investor Today, lifetime mortgage sales tripled from 2013 to 2017.

These figures will most likely rise in the years to come, as long as this opportunity for over 55’s is available.

On the contrary, the lenders have tactfully positioned themselves to make a significant amount of money through repayment schemes.

This scheme has been well thought out by the financial services of the UK to ensure money is being generated within the financial industry and the UK economy respectively.

You can read the detailed figures of equity release spending on the Property Investor Today website.

In conclusion, equity lenders have cashed in on a well thought out equity scheme named “Lifetime Mortgages” that benefit the lenders and the UK economy.

The future will reveal how effective this lifetime mortgage scheme has benefited the UK nation.

To read about other mortgage related topics in our blog, visit our blog post about equity release.

Rent Prices Rising

Rent Prices Rising 2018

To begin, rent prices rising is on the cards for 2018.

At least that is the prediction.

Forecasts for the months ahead have been provided by companies like NAEA Propertymark and ARLA Propertymark.

As a result, agents will be affected by the rental market with the 0% fee structure being imposed.

The Property Investor Today website suggests such claims.

rent prices rising
Rent Prices to Rise for 2018

Rent Price Rising Predictions

Consequently, the rise of rent has an effect on the property market.

What kind of effects might this prediction cause?

First of all, David Cox, chief executive of ARLA Propertymark reckons this will have a positive effect on the rental market through planned, government regulations.

Which regulations? One being control of the rental market through estate agents.

Analysts believe that this will make the rental market stronger and more professional.

For first time buyers, there may be a positive outcome.

Due to these regulations, there might be stamp duty relief for first time buyers as well.

Ultimately, there is no certainty of how the rise of rent will affect the UK property market in 2018.

In conclusion, there are predictions that the rent prices will rise in 2018 making the rental market stronger and more professional.

How will this affect landlords, agents and tenants?

We will have to wait and see how this all pans out.

More statistics can be found on the Property Investor Toady website regarding this topic.

 

Check out our other Property Finance News posts:

Property Finance News

 

Winter Wonderland

Winter Wonderland Hyde Park

First of all, it is that magical time of the year, and Winter Wonderland adds to the magic.

The Christmas season is here, and it is time to celebrate in style.

One of the biggest Christmas events in London, Winter Wonderland at Hyde Park, is now in full swing.

And what makes it even better?

It’s free to visit this magical experience!

winter wonderland hyde park
Winter Wonderland Hyde Park 2017

Celebrate Christmas in Style

There are various attractions and things to do at the magical park, that you may not be able to do it all in 1 day.

Not to worry though. Hyde Park is inviting everyone of all ages.

This year, the annual event started on the 17th of November 2017 and it ends on the 1st of January 2018.

There is still plenty of time to visit this wonderful experience and book tickets to the several attractions on offer.

The Attractions include:

  • Ice skating
  • Bar Hutte
  • Magical Ice Kingdom
  • Cinderella on Ice
  • Bar Ice
  • Zippos Christmas Circus
  • Cirque Berserk
  • The Sooty Christmas Show
  • Giant Observation Wheel
  • Santa Land
  • Various Rides & Games

Conclusion

To conclude, you have until the 1st of January 2018 to experience this magical Winter Wonderland located in Hyde Park for all to enjoy.

There are loads of attractions and things to see, do and enjoy during the festive season.

Visit this website for more details.

 

Private Property Value

Private Property Value Exceeds £6 Trillion.

First of all, the private property value has definitely risen over the last decade or so.

This is obvious, especially in London, as property prices have gone up exponentially over the last 15 years.

This information was provided in a previous post about House Price Growth.

According to Property Investor Today, it states the following:

“The total value of privately owned properties in the UK has increased by £1.94 trillion over the last decade, surpassing £6 trillion for the first time.”
private property value
The Value of Private Property Increasing Since 2007

Private Property Value Stats

In regards to statistics, the average house price in London has increased by £349,629 to £579,761 since 2007.

That is a 71% increase!

Furthermore, the stock of privately owned properties in the capital since 2007 has grown by a quarter of a million.

That is a 10% increase.

According to Russell Galley, the managing director of Halifax, he says:

“While more than a fifth of total property wealth is in London, lower levels of owner occupation reflect a major barrier to the property ladder with a far greater number of people renting where house prices are at their highest.”

Stats Across the UK

The overall housing value in southern England has risen over two and a half times faster than the north since a decade ago.

That is 65% and 25% respectively.

Some 76% of private housing across the UK belongs to owner occupiers.

Overall, there has been a steady increase in the UK.

Will it continue to rise and affect variables in the property market? Stay tuned to find out.

Conclusion

In conclusion, although there is currently a slight decline in the property values across the UK,  since 2007, there has generally been an increase of value in the property market.

Reduced Asking Prices

Reduced Asking Prices Create Demand

First of all, there has been a wave of reduced asking prices in prime central London areas.

As a result, this has created a demand in buyers looking at areas like Belgravia.

This comes from the source on Property Investor Today.

“According to the Knight Frank report, buyer sensitivity to property prices remains high, while some figures highlight the nature of demand in Belgravia.”

This demand will clearly be from interested people who have the money to buy in such prime London locations.

Nonetheless, it is the right time for people to look at these areas to see if they can purchase a good property deal.

You may not see a reduction on every property listing, but there are some reductions to be found.

Happy property hunting!

reduced asking prices
Reduced Price

Asking Prices Reduced in Central London

It seems like Belgravia appears to be an area with a quality of housing stock.

As a result, this is driving the demand in the area.

This is according to Stuart Bailey, head of Knight Frank’s Belgravia office.

Hence, the attraction of buyers looking in these areas where asking prices have been reduced.

In conclusion, asking prices have been reduced in prime central London areas like Belgravia. This is attracting a demand for buyers.

Read the entire article about this topic on the Property Investor Today website for more detailed information.

Find out more information on our posts about Property Finance News via the links below:

House Price Growth

Mortgage Stability UK

Interest Rates Rising UK

Print Festival Tower Hamlets

Print Festival Tower Hamlets

To start it off, the holiday season is upon us, and a print festival in Tower Hamlets may be for you.

Tower Hamlets Council are advertising the event on their website.

The free event will take place on Friday, the 17th of December 2017 between 11am and 6pm.

East London Printmakers is hosting the event.

The exhibition will be at the The Art Pavillion near Mile End Park.

The art community will be excited to see the works of the various artists on display.

Art can bring different cultures, races and religions together, and this event will be no different.

It is a time for everyone interested in art to appreciate the various works on exhibit.

Even if art is not a passion, it is always nice to look at different styles of art that artists create with passion.

Bring a friend or three to view these works of art created by passionate artists.

print festival
Festival of Print

Print Festival Exhibition

The Festival of Print 2017 will be celebrating the work of over ninety print makers from East London.

Furthermore, affordable limited edition prints of these artists will be showcased at the exhibition.

The host, East London Printmakers, offers opportunities for the public.

These services include public access to their studios, and tuition.

Visit the ELP website for more information about the host of this event.

Print Festival Venue

Host:  East London Printmakers

Venue:  The Art Pavillion

Address:  Mile End Park, Clinton Road, E3 4QY

Date: Friday, the 17th of December 2017

Time: 11am and 6pm

To conclude, those fascinated with print are in for a treat at this exhibition of print during the festive season.

You will be happy you did.

View the Tower Hamlets Council Website for more details about this Festival of Print 2017.

Other events we have shared:

Fireworks Celebration

Children’s Activities

House price growth

London’s home price to earnings ratio.

First of all, house price growth can affect you in one way or another.

Also, depending on your current salary at your place of employment, this can can have an impact on your situation.

There can be a lot of information to read and understand, but if you do your research, it can be better understood.

The  Property Investor Today website helps to understand house price growth in regards to the home price to earnings ratio.

According to Property Investor Today, “The gap between house prices and average earnings has reached a record high in London…”

According to the property market analysts, servicing companies across the residential sector, Hometrack.

house price growth to earnings ratio
House Price to Earnings Ratio

House price growth

Unless you are living under a rock, most people living in the UK would have noticed the rise in house prices nation wide.

Most people would also note that their income has not increased dramatically.

Areas like London have gone up exponentially over the last 15 years, and the House Price to Earnings Ration has also increased.

The UK Cities House Price Index revealed that the property price to earning ratio in the capital is now 14.5 times average earnings in London.

Cambridge was 14.3 times, followed by Oxford (12.6) and Bournemouth (10.1). Bristol came fourth with a 9.7 ratio.

Other regions of the UK have also risen considerably over the years including Birmingham,

Depending on how much money you make, this may impact your ability to acquire a loan for a mortgage.

The House Price to Earnings Ratio shows you how the rising house prices in the UK have an impact on the amount you earn.

Do your research if you want to understand your position in the property market and how it affects you.

You can find other mortgage related information in a previous post about mortgage stability.

 

Mortgage Stability UK

Buy-To-Let Mortgage Costs Remain Stable.

After some time, there appears to be some mortgage stability on the horizon.

According to the website ‘Property Investor Today‘, the cost of mortgages on a buy-to-let basis have remained “mostly unaffected by the second phase of Prudential Regulation Authority changes” .

Stability is much needed during these uncertain times ahead. If you are currently in the process of acquiring, or considering a mortgage to buy a property, read on.

It is also important to do your research on the news about rising interest rates on our previous blog post.

mortgage stability
Mortgage UK

Mortgage Stability

When you read the article about rising interest rates, note that LTV means “loan-to-value”, and  BTL means “buy-to-let”.

According to the article:

“The only product that now costs more is a five-year fixed BTL mortgage, which currently has a rate of 4.09% and is now 2% more expensive than it was three months ago…”

There is more specific information provided in the article. It is advised that it is read and understood.

If you do not understand the terms within the article, here is a link to Keystone IMC Ltd website to better understand mortgage related terms and phrases with this glossary of mortgage terms.

All of this can be almost like a foreign language to some people. Understand how this information will affect one with an existing mortgage, or if you are considering one.

If you learn more about mortgages and mortgage related terms, you are better prepared before you proceed.

If you are considering a buy-to-let mortgage, definitely investigate further.

It is reassuring that the the cost of mortgages on a buy-to-let basis have remained mostly unaffected, but time will tell how things transpire.

In conclusion, if you are either considering to get a mortgage, or have an existing mortgage, the Property Investor Today article is definitely worth a read.

 

Interest Rates Rising UK

UK Interest Rates on the Rise Since July 2007.

First of all, the interest rates rising is a topic of discussion in the UK. We need to understand that the UK had a good 10 year run with interest rates set at 0.25%. Interest rates are now rising!

Hence, there was a boom in the buy-to-let property market.

As a result, the interest rates have risen in the UK.

interest rates rising
Rising Interest Rates 2017

Interest Rates Rising Confirmed

According to Mark Carney, the Bank of England governor;

“For the first time in over 10 years, the Bank of England has raised interest rates…”

It can be confirmed that the official bank rate has now been raised from 0.25% to 0.5%.

Source: http://www.bbc.co.uk/news/business-41846330

This will affect buy-to-let Landlords with mortgages on their properties. If you have a property that you are renting, you need to ensure you can pay the mortgage.

According to the Guardian, and the ratings agency Moody’s; “…it warned that the outlook for the buy-to-let market has worsened significantly.”

The article also; “… warned landlords to expect falling rental income, particularly in London and the south-east, while rising taxes will also make it more difficult for landlords to cover their mortgage payments.

To read more about the effect of the interest rates rising, visit the Guardian via the source link below:

Source: The Guardian 

Metropolitan and Crown Estate Agent Ltd offers Guaranteed Rent to Landlords covering rental void periods. Do not let this scare you. However, being prepared is a must. For Landlords, our guaranteed rent scheme may be a suitable option for your property’s future.

To conclude, the interest rates are now on the rise at 0.5% and will rise at least twice in the next couple of years. It is advisable to understand what is happening in the property market.

Ensure that you take measures to ensure you are not adversely affected in the future.