LONDON -- As the U.K. government prepares to announce provisions to address the housing crisis, prospective buyers are returning to the market but many are stopping short of making purchases.
Some U.K. house builders have reported sales growth this year, and reports by the Royal Institution of Chartered Surveyors and others suggest that both sales and mortgage approvals rose slightly recently.
More people also viewed homes in March, and prices have edged up. Lender Nationwide Building Society said the price of a typical house increased in March for the first time since October 2007, rising 0.9%, reducing the annual rate of decline to 15.7% from 17.6%. Bank of England figures show an increase in mortgage approvals in February.
But industry observers said the rise in house prices could be temporary. Prices still are at historic lows, and there is little evidence that the market is stabilizing.
Thursday, April 23, 2009
Saturday, April 18, 2009
U.K. Property Slump Eases as Buyers Return
April 15 (Bloomberg) -- The slump in U.K. house prices eased last month after more than a year of declines lured buyers back into the market, the Royal Institution of Chartered Surveyors said.
The number of real-estate agents and surveyors saying prices fell exceeded those reporting gains by 73.1 percentage points in March, the lobby group said today in London. That compared with 78.1 in February and was the highest balance in 13 months. The average number of sales per surveyor rose for the first time since 2007, climbing to 9.7 from 9.6.
The report adds to signs the property market’s downward spiral is slowing. The Bank of England has cut its benchmark interest rate to a record low, mortgage approvals increased in February and Nationwide Building Society said prices rose for the first time since October 2007 last month. At the same time, the economy is still battling the worst recession since at least 1980, and prices may fall further in coming months.
The number of real-estate agents and surveyors saying prices fell exceeded those reporting gains by 73.1 percentage points in March, the lobby group said today in London. That compared with 78.1 in February and was the highest balance in 13 months. The average number of sales per surveyor rose for the first time since 2007, climbing to 9.7 from 9.6.
The report adds to signs the property market’s downward spiral is slowing. The Bank of England has cut its benchmark interest rate to a record low, mortgage approvals increased in February and Nationwide Building Society said prices rose for the first time since October 2007 last month. At the same time, the economy is still battling the worst recession since at least 1980, and prices may fall further in coming months.
Wednesday, April 15, 2009
Friday, April 10, 2009
West End office rents fall 11.8 percent
The amount of empty offices in London's City financial district has risen by a tenth since the start of 2009, pushing the total amount of vacant space to more than 10 million square feet.
A report from broker NB Real Estate on Wednesday showed the total available City office space was now more than 10 million square feet for the first time since 2004 as more businesses downsize to cut rental costs following job cuts.
The available office space equates to about 37 of the iconic "Gherkin" building in central London.
NB Real Estate said City office rents fell by 9.5 percent last quarter to 47.50 pounds per square foot, but the fall in City office rents has been outstripped by an even faster deflation of rents in London's West End business district.
Rents in this area, once heavily populated by high-spending hedge funds, have fallen 11.8 percent to an average 75 pounds per square foot in the last three months, against a third-quarter 2007 peak of 135 pounds per square foot.
A report from broker NB Real Estate on Wednesday showed the total available City office space was now more than 10 million square feet for the first time since 2004 as more businesses downsize to cut rental costs following job cuts.
The available office space equates to about 37 of the iconic "Gherkin" building in central London.
NB Real Estate said City office rents fell by 9.5 percent last quarter to 47.50 pounds per square foot, but the fall in City office rents has been outstripped by an even faster deflation of rents in London's West End business district.
Rents in this area, once heavily populated by high-spending hedge funds, have fallen 11.8 percent to an average 75 pounds per square foot in the last three months, against a third-quarter 2007 peak of 135 pounds per square foot.
Friday, April 3, 2009
Smaller drop in London real estate sales seen as a good sign
It's a sign of the times when a 7.2% drop in sales is seen as good news in the London area real estate market.
The London St. Thomas Association of Realtors (LSTAR) reports 551 detached homes and 118 condos sold in March. The total sales of 669 units is down 10.2% compared to 745 in the same month last year.
LSTAR president Joe Hough said the 7.2% decline in detached home sales is a big improvement over the 35% overall drop seen in January and 30% in February.
"When you look at what's going on in other markets, a 7.2% decline isn't bad. I'm almost thrilled," said Hough with a laugh.
Hough said prices have also remained relatively stable despite all the bad economic news in recent months.
The London St. Thomas Association of Realtors (LSTAR) reports 551 detached homes and 118 condos sold in March. The total sales of 669 units is down 10.2% compared to 745 in the same month last year.
LSTAR president Joe Hough said the 7.2% decline in detached home sales is a big improvement over the 35% overall drop seen in January and 30% in February.
"When you look at what's going on in other markets, a 7.2% decline isn't bad. I'm almost thrilled," said Hough with a laugh.
Hough said prices have also remained relatively stable despite all the bad economic news in recent months.
Wednesday, April 1, 2009
A Middle Eastern real estate company has opened an office in London
Dubai-based Landmark Properties has opened an office in Mayfair to hunt out real estate opportunities for its Middle Eastern clients, claiming exchange rates alone have made London property 25% more affordable in the last six months.
John Michael, manager at Landmark Properties UK, said: "If you live in the United Arab Emirates or elsewhere in the region, there has never been a better time to invest in London properties - the exchange rate is in our favour and the Bank of England base rates are at an all time low of 0.5%, therefore excellent rates can be achieved for clients based outside of the UK."
Michael said London properties were highly sought after by Middle Eastern investors as they had undergone several peaks and troughs and but the market remained one of the most proven and mature worldwide.
John Michael, manager at Landmark Properties UK, said: "If you live in the United Arab Emirates or elsewhere in the region, there has never been a better time to invest in London properties - the exchange rate is in our favour and the Bank of England base rates are at an all time low of 0.5%, therefore excellent rates can be achieved for clients based outside of the UK."
Michael said London properties were highly sought after by Middle Eastern investors as they had undergone several peaks and troughs and but the market remained one of the most proven and mature worldwide.
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