Archive for September, 2011
Terrace houses see a rise
The House market has saw a rise in the high demand for terrace houses as they have raised by 68% taking their rental income to £118 per week on average.
According to Halifax bank the price of terraced houses have increased more than any other type of property, this is increase is the highest seen in ten years. Bungalows were the next property type to see a rise by 67% slowly followed by semi-detached properties reaching a 62% increase.
Flats and maisonettes have seen the lowest rise this quarter only rising by 49%.
Slow rise in Housing Market
House prices are still only seeing a slow rise in the market throughout the current months as in September the increase has been 0.1% this still leaves the average home price down by 0.3% compared to this time last year.
During the past three months up to September the prices have been unchanged in the housing market, due to the economy debt crisis that has hit homebuyers.
Rental market soaring
Demands in the rental market soar as would – be buyers struggle to raise mortgage money. It’s not just people that are struggling to find the deposit for a mortgage it is now tenants struggling to find the deposit or the property they want as the rents are soaring to new level and there are many more people after rented accommodation.
The huge demand is taking rents up which is also causing deposits to rise.
Rents rose to an average of £713 a month for the seventh month in August and to a whopping £1,025 pcm in London, the deposits in London are well over a £1,000.
Rent rise
The average tenant pays £713 a month due to the huge rise in the rental market. This is a rise of 1.2% compared to last month August’s rents have shot up. The places that saw the greatest rise were Wales and the South East of England.
Arrears therefore seen and increase for the first time since April, because of the high demand in the rental market there has been no alternative but to up the cost of the monthly rents as landlords are finding that they are benefiting.
Sales Grow in August
Sales volumes are down buy 0.2% in August, a retail survey shows. This means that the volume of sales for the month was nowhere near the same amount than compared to a year ago. The sale growth has been slowing down since June, as the decrease was 0.8% in June and a further 0.4% in July.
Riots in August resulted in some shops shutting earlier than usual therefore reducing there hours and losing them custom. However when asking retailers what they thought some said they were at a lost because of the riots but some believed that there sale prices had increased due to shoppers changing their behaviour.
Rent rise
The average tenant pays £713 a month due to the huge rise in the rental market. This is a rise of 1.2% compared to last month August’s rents have shot up. The places that saw the greatest rise were Wales and the South East of England.
Arrears therefore seen and increase for the first time since April, because of the high demand in the rental market there has been no alternative but to up the cost of the monthly rents as landlords are finding that they are benefiting.
Average houses sold in August see a huge drop!
UK estate agents on average sold around 14 homes in the last four months; this is the lowest seen since 2009. The things that led to the sluggish housing market are the economy uncertainty and the lack of mortgage lending; this was reported by the Royal Institution of Chartered Surveyors.
Rics have said that more surveyors reported price fall compared to the amount of price rise. They are also expecting prices still to fall then rise in future months.
Alan Collett, housing spokesman for Rics has commented; “worsening economic picture will gradually begin to have a more material impact on sentiment and discourage potential house purchasers, even if they have mortgage finance available.”
Interest Rate reside at 0.5%
The Bank of England’s Monetary Policy Committee has held the UK interest rates at a low of 0.5% for the record amount of time.
Due to concerns for the economy, economists suggested that the interest rate remained unchanged as they don’t believe the economy would survive an increase. Figures provided by the Banks have shown that savers have lost out on £43bn due to interest rates being so low.
Figures have shown that mortgage brokers have gained £51bn.
George Osborne, Chancellor, has put policymakers under increased pressure as he admitted on Tuesday that the economy has weakened and all hopes of growth have been revised down.
Sovereign Debt Investment cut in value will not prove good for Banks
The chief executive of Deutsche Bank has warned that if sovereign debt investments value is cut then the European banks will not survive.
This was said as Greece have been asking private investors to swap their current Greek bonds for others that have to pay less interest over a longer term, after a gathering of bank bosses in German this week.
Many people believe that the chief executive is merely stating the obvious regarding the Banks and how they would struggle. If they did cut the sovereign debt investment this would limit bank profits for a number of years.
Retail sales fall in August
Weak consumer confidence and high inflation continue to dampen the spirits of spenders throughout August as the retail sales shown a fall.
Sales throughout August fell by 0.6% compared in previous months and this is because customers are going for like to like sale instead of looking around at other sales, therefore providing a fall in the retail sales according to the British Retail Consortium.
Last year saw the total sales for August up by 2.8% whereas this year the total sales were up 1.5% obviously this shows a huge drop. Riots are not to blame for the impact on the sales as they were not widespread over England, and also data released on Monday shown that the rioters had little impact on UK high Streets.