The Spicerhaart Corporate Sale report was released earlier this week and it didn’t make great reading for those owning property in London, or any UK city or any home-owner in the country really. According to the report, the league of repossession hotspots in the UK is topped by London, which experienced 166% more than 2nd placed Birmingham
The findings revealed that none of the biggest 5 UK cities fared well with Manchester, Liverpool and Belfast coming in 3rd, 4th and 5th respectively. Those living in the city often paid the highest prices to procure a property but with high unemployment and even higher numbers of defaulting home-owners have really struggled.
Financial specialists are worried about the fact that the current economic situation in the US will continue to have a big impact on the UK housing market. Due to recession in The US, first timen home buyers are not able to get mortgages due to the reduced approval rates meaning the ‘we buy any house‘ companies are stepping in to offer home-sellers a much needed sale.
One of the greatest of difficulties that first time buyers have to face is that many financial institutions and banks have cut the maximum lending amount and many of them have also increased the rates of tracker mortgages. This condition has been made horrendous for those people who are just climbing on the property ladder because the rate of interest is very high and properties displayed are very few.
The current UK housing market scenario is not very promising for first time buyers. This is because credit has dried up and deposits are a must. The main problem is that now even banks are not coming forward to offer 100% mortgage. This is because the credit crunch has hit them hard which has resulted in a dent in their enthusiasm about investing in the housing market.
The worst hit is first time buyers and those looking for a fast house sale as they are finding it extremely difficult to chance upon a suitable mortgage provider. Most of them have gone to the extent of withdrawing products. The products that are available come with such exorbitant interest rates and arrangement fees that first time buyers can never hope of laying their hands on them.
The global economy is still looking very shakey and the UK housing market is in a stagnant state filled with lots of troubles. Many experts feel that the economic downturn and resulting affect on the market was simply caused by greed. Whatever the reason, many insiders are anticipating that things will get better soon and the market will bounce back again.
Financial analysts feel that the condition will get better when banks will start lending money again. But to do so they must offer products to people which are affordable and will also be suitable for their current needs. As well as cash flow, in order to turn the situation of the housing market, the confidence of customers must also be addressed.
The current situation of the UK housing market is such that the quick house sale is becoming a rare beast meaning both first time buyers and those already having mortgages are struggling hard to cope. The problem that first time buyers is experiencing is that they are finding it difficult to find mortgage providers as they have much limited choice.
This is because a large number of lenders have withdrawn products from the housing market. The available products have such high interest rates and arrangement fees that they are out of reach of first time buyers. Again, people with mortgage are worried about the fact that after their tenure gets over with, they will not be able to find similar affordable deals.
The housing market does not look very promising at the moment. The recession has played havoc with the economy and its repercussions can be felt in the housing sector as well. Raising funds is proving to be difficult for the banks from wholesale markets as a result of which they cannot lend cash.
Also, they have become quite skeptical regarding investing in the housing market and are no longer considering it as a profitable proposition. Therefore, they are only keen on lending funds to buyers who can flaunt a good credit score as well as a huge deposit. The days of 100% mortgages are over.
The global economic meltdown has affected the property markets to a large extent leading to fluctuating real estate prices and uncertain rates of interest. There has been a lot of economic turmoit in the realty market in UK with the lengthy recession hitting the market badly and creating a pricing plateau.
There is a wealth of properties available with many trying to sell house and flat dwellings quickly before interest rates take a big rise. Owing to the current state of properties in UK, people are dreading to buy the houses at this point of time because of the increased realty rates all over the country after the downturn.
There has been much fluctuation in prices of properties within the UK housing sector over the past 18 months leading consumers to hesitate spending in this sector. After the global economic crisis, the markets have improved and the recession has ended, yet the instability in the housing market has compelled the buyers to drive down their spending considerably.
Despite departing from the recession, there is a risk of further weakness in the economy as well as chances of reduced mortgage availability in the market. As a result people have become wary of spending in large amounts in the housing segment to avoid any further financial risks in the long term.
Owing to the aftermath of the global economic downturn, it has been found that repossession numbers have risen and property prices have changed significantly. This is leading many home buyers to shy away from making a property investment. Because they are thinking twice before investing in property market; the real estate sector has witnessed dramatic lows during the recession.
During this economic phase, it is important that you be careful about the investments you make because there has been a deficiency in liquidity in the market. Amidst this, the home buyers are thinking of putting their money in investments which will give them some profit margins rather than incur losses.
The Council of Mortgage Lenders (CML) have revealed that the UK housing market is as flat as it ever has been and expects very few people to be buying homes over the next few years. These assumptions were backed up by data from Hometrack which showed that house prices increased by just 0.2% in April.
The CML also said that those who were thinking about moving house have decided against it because of high deposit rates required as well as feelings of uncertain about the economy and upcoming general election. With little sign of a quick house sale in sight, month on month house prices have pretty much stayed the same with homesellers asking just 0.1% more in March than in February.