No buyers for buildings in London |
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| Tuesday, 08 January 2008 | |
 Falling London market The London property market is falling, and new data confirms that the slide is significant. Investors fear significant decline in willingness to purchase property will cause large drop in values. News out of London is less than stellar in the property market. Since November, appraisal values have hit a new low, dropping four percent. Over the last 11 months, there has been a decline to the tune of nearly 8 percent. While news is not good for values, it is not good for the credit market either. Here, the number of mortgages approved dropped by some 5,000 in November, the latest figures say, over October. Additionally, this number is some 17,000 less than those approved in September of 2007. One analyst from Global Insight sees a 3 percent drop in the prices of British homes throughout the next 12 months. Additionally, the commercial front is also likely to be hit. There, some £700 billion in property is likely to do poorly, poorer than the US, Asia as well as the rest of Europe. Complicating matters is a slew of problematic economic indicators. The increased rate hikes throughout 2007 by the Bank of England have caused interest rates to be higher. Yet, most economists believe the Bank of England will continue to cut rates throughout 2008. Additionally, the US mortgage investment market has caused profits to drop for investors from the UK. The loss numbers have climbed to some $90 billion. With this bad news comes a bit of light. Throughout London and other areas, housing remains tight. Supply is still struggling to keep up with demand, which may help to keep the housing market here from completely falling through. Additionally, employment throughout the UK has remained strong. Most home owners are doing well and are not forced to sell. These differences from the US housing market are providing encouragement to economists and investors in British property market. The drop in value and the market overall is said to be much less than that of the drop in the 1990's. This story relates to: [SEE ALL] BOOKMARK THIS PAGE (What is this?) |
- Irish property market shifts from seller to buyer 11/01/2008
- UK landlords not looking to sell 10/01/2008
- London and South East are 2008 property hotspots 10/01/2008
- Turkish JV company sells 268m Euro property 09/01/2008
- House prices likely to fall in the UK 09/01/2008
- European Central Bank may hold rates 08/01/2008
- Mortgage lenders not passing on the rate cut 07/01/2008
- State of money markets calms Central Banks 05/01/2008
- UK mortgage approvals declining 03/01/2008
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