UK Property Weekly Update – Will 2010 Be The ‘Year Of The Landlord’?
Posted by: John Cooper / Category: Weekly SummaryWill 2010 Be The Year Of The Landlord?
Research by popular property website Rightmove suggests 2010 may be the ‘Year of the landlord’ after property prices fell for the second month in a row.
Although it is traditional for property sales/prices to fall during Christmas – with a brief reawakening in spring – Rightmove believes there will be further property price falls before the property market enters into a period of complete stagnation.
71% Of Investors Say ‘Bye Bye’ To The UK
Property investors looking to escape the ‘gloom and doom’ of winter weather, a poor economy and an equally stressed property market, may be setting their sights on the shores abroad.
According to a survey by Primelocation International, a lot of homeowners and property investors alike are opting to stay this Christmas in their second homes abroad.
Repossessions Fall 27,000 Below Previous Predictions
Repossessions may have risen by 3% compared to the previous quarter, but due to our historically low interest rates the number of repossessions for this year is 27,000 lower than previously predicted by the CMI.
In the Financial Services Authority (FSA) report, they revealed how over 13,987 properties were repossessed during the 3 months leading to September, which although high is still 6% lower than the first 3 months of this year.
How To Make Low Interest Rates Work For You
Economists are predicting that the Bank of England will not raise the 0.5% base rate until the UK economy is in a more stable rate of recovery.
The base rate has been at an all-time historical low since March 2009, and according to the Centre for Economics and Business Research (CEBR), they do not feel the Bank of England will raise rates until at least 2011. But even then they feel the official rate of interest will easily stay below 2% for the next 5 years.
To Let or Not To Let That Is The Question
Second homeowners who have taken advantage of the rental investment market during 2009 are set to experience another prosperous year according to holidaylettings.co.uk.
During a recent assessment of their website they found that their UK inventory had doubled year on year compared to 2008, and one of the main reasons they feel this has occurred is because of the number of homeowners who are seeking to make their second homes pay for themselves.
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Tags: 2010 landlord, low interest rates, repossesion
January 11th, 2010 at 5:29 pm
I think you could be right. I keep reading that demand for rental housing is on the up and rent rises should follow. It also depends on lending and what kind of mortgages become available in 2010.