Archive for April, 2009
April 20th, 2009
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Research released on 20th April, 2009 revealed a rise in unemployment among new tenants from 3.1% to 7.8% in last twelve months. The private rented sector has been hit the hardest under the current economic recession. Landlords are therefore warned by this trend.

According to the First Release of Office for National Statistics (March 2009), the unemployment rate in general has been increasing drastically since the second quarter of last year; whereas the number of job vacancies has dropped by 203,000 in Feb, 2009 compared to the previous year (See graphs below). These statistics in employment are vastly anticipated by the commentators under the economic downturn. Read more…

Author: Categories: Landlords and Tenants Tags:
April 16th, 2009
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The recent data and figures surprisingly reflected a sign of recovery from the current economic crisis: increased buyers’ interests and enquiries on property market, rise in loan approvals and stronger Pound against Euro and Dollar. Is it true that our property market is recovering? Read more…

Author: Categories: Economic Situation Tags:
April 14th, 2009
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Some Landlord Associations have reported that increasing numbers of landlords had experienced tenants in rental arrears in the past six months, which contributed to the rise in repossession of buy-to-let properties. Hence, landlords are urged to obtain tenant referencing to reduce the risk of loss-of-rent and repossession under the current economic situation.

Under the recession, many people are experiencing and struggling with salary cut or redundancy; which have a huge effect on tenants who rely excessively on their salary to pay their rents. Recent research from a Landlords Association revealed that 37% of landlords are currently facing tenants’ arrears; and 44% of them were facing the same problem over the past six months. These figures in tenants’ rental arrears directly reflected the increase in numbers of landlords who claimed for loss of rent as reported by Letting Protection Service (LPS) – with 1,286 landlords faced runaway tenants in October 2008 compared to only 91 landlords experienced this in the previous year. Read more…

Author: Categories: Landlords and Tenants Tags:
April 7th, 2009

The house price is dropping throughout the last few months and that leads to a serious concern from the banks over high mortgages in relation to the value.

Data showed that there is an increase in mortgage approvals alongside with the decrease in house prices. This relaxing approach of lending and availability of low house prices should benefit the buy-to-let investors in theory. However, despite these factors, borrowers are faced with a large deposit challenged by the mortgage lenders.

The falling of house price phenomenon demonstrated a large loan-to-value (LTV) ratio, where mortgage loans are relatively high to the property value. This generates a fright ambience among the mortgage lenders. Read more…

Author: Categories: General Tags:
April 6th, 2009

Halifax and Nationwide both reported the movements of house price last week.  The data resulted in contradiction that has caused some confusion, leading to more predictions within the property market.

Is the property market starting to recover, or is the worst still yet to come?

Following the abrogation of the yearly property forecast due to the volatility of the market in December, 2008; the two leading mortgage lenders, Halifax and Nationwide, provided data reports of the movements of house price in March last week. Halifax released its data showing a drop of 1.9% in house prices; whilst Nationwide surprisingly reported a first rise of 0.9% since October, 2007. Read more…

Author: Categories: Property Market Trends Tags: