U.K. Homebuyers Bet Property Recovery to Be Illusory

May 8 (Bloomberg) -- Nyasha Kuwana won’t be taken in by signs of recovery in Britain’s battered housing market.

“I think the market may get worse,” said Kuwana, a 29- year-old insurer who put off her search for a one-bedroom flat in West London earlier this year. “I will be no worse off buying in six months.”

A 17 percent slump in prices since their peak last year and the lowest interest rates in the Bank of England’s history have stoked optimism among banks such as UBS AG and real-estate agents that buyers will soon return. Mortgage approvals rose to a 10-month high in March.

Rents Crashing in London to 1991 Prices Le Gavroche Shows Gone

May 14 (Bloomberg) -- Anyone driving a BMW 3-series convertible in London probably knows the price has doubled since 1991. A three-bedroom home in Chelsea fetches almost three times what it cost 18 years ago. And at Le Gavroche, the two-Michelin- star menu favored by bankers since the Big Bang of the 1980s, dinner will set you back 33 percent more than you paid when Margaret Thatcher was prime minister.

It’s another story in the City of London, where office rents in the U.K.’s main financial district are falling to 1991 levels as job losses and a mistimed building boom depress prices.

House prices 'up by the end of the year'

Lloyds, Britain’s biggest lender, has predicted house prices have only 6% further to fall and could rise by the end of the year.

The forecast comes as commentators grow increasingly optimistic about the outlook for the UK economy and stock market, with the FTSE 100 now showing a gain for the year. The index closed at 4,462 on Friday, above 2009’s starting level of 4,434 and 27% higher than its March low.

U.K. Commercial-Property Decline Slows, RICS Survey Shows

May 5 (Bloomberg) -- The rate of decline in demand for U.K. office and retail space eased in the first quarter, the Royal Institution of Chartered Surveyors said, suggesting record-low interest rates are helping shore up the market.

The net balances for enquiries, demand and confidence were the least negative in a year with the industrial sector the most improved, the Coventry, England-based association of real-estate professionals said today in a report.

“The improvement in the market offers some hope that aggressive cuts in monetary policy have provided some limited support for the commercial markets,” RICS said.

A net balance of 40 percent of surveyors reported a drop in new sales and lettings to occupiers, compared with 71 percent in the fourth quarter.