Even though there is a current decline in the housing market in the UK, a new report by the National House Federation is predicting a rise in prices of 25% in the next five years. This was determined by estimating that an increase in housing demand and a decrease in housing production would make the difference. The Federation has requested that the government continue investing in affordable house for the expected increase in need.
In addition to the supply and demand for affordable housing currently, the supply and demand problem is becoming twofold by lenders cutting off its lending in an effort to maintain their services with existing applications being processed. Fortunately, the recovery is expected to begin as early as 2010, much to the relief of the homebuyer. For more information, please contact The Mortgage Shop
You may read a lot of information and articles on the internet about financial and property subjects. But how much of this information is just regurgitated nonsense. How many of these people have actually dealt first hand with the subjects they write about. I recently came across a cool section on the BBC business section where a reader was providing an in depth online diary about her current financial problems and debt worries. Regular BBC news reader Sayara Beg is 36 and a freelance IT consultant. She is currently having financial problems as she is taking a former employer to court over sexual discrimination. Sayara is also pregnant so she is facing further pressure to sort out her and her husband’s financial situation.
The diary is extremely frank and in depth, it covers a lot of her concerns and genuinely makes you feel for her. She covers many subjects such as avoiding repossession, wanting to sell her property in a quick property sale.
Im not sure whether diary entry 13 is her last, but Sayara starts looking back over her struggles with the bank and her creditors and she puts together some tips and advice.
These are work out a budget early, consider timing of starting a family and cutting up your credit cards. To fully understand this advice, you should really go and read all her diary entries which can be found here.
A new record has been set by mortgage lending for property purchase falling to a new low. The British Bankers Association (BBA) has stated that during May, numbers of mortgage approvals has dropped to 28,000. This is a drop of 20% since April and 56% drop since the previous year. This number of approvals is apparently the lowest since the BBA started recording data in 1997. “Measures of mortgage activity were lower in May as a result of tighter lending criteria and economic pressures on households, only remortgaging business is holding up, where people need or want to take advantage of deals with other lenders.” Said David Dooks of the BBA.
Apparently two thirds of the UK mortgage lenders are part of the BBA who are reporting that the UK property market is dealing with an unprecedented slump in sales. Due to the current credit crunch, a lot of the funds used for mortgages and provided by lenders and international financial markets have been stopped.
Many people in the property industry, such as builders, mortgage lenders, surveyors and estate agents are reporting the same bad news and sales are said to drop to between 35% and 45% over 2008.
These bad sales figures have led to house prices falling over the last few months with predictions of prices falling by more than 10% by the end of the year.
A good indicator of sales is mortgage approvals levels, but figures from the BBA show a contradiction in levels so far. This data does not include building societies which will alter results.
All mortgage lenders will provide data and these figures will be published by the Bank of England on 30 June. ”Deep correction” Howard Archer, chief UK and European economist at Global Insight, said “More housing market data, more very worrying news that heighten concern that we are in for an extended, deep correction in the housing market. “The BBA data graphically highlight that housing market activity is currently being throttled by stretched affordability and tight lending conditions. “Very low housing market activity seems certain to feed through to further depress already markedly weakening house prices.”
For more Property news and information on a quick property sale follow this link to Sell House for Cash advice.