Welcome to The Mortgage Guide UK
The latest CPI inflation figures released by the bank of England show that the main inflation rate was 2.7% in January. This is a fall of 0.3% on the December figures. However the old method of calculating inflation, the RPI was 4.2%. This higher inflation figure is mainly because it includes mortgage interest payments. The …
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House Prices in the UK in 2006 rose faster than most other industrialised countries. UK prices rose by about 10% last year. This was helped by low real interest rates and a strong economoy. In Europe house prices rose more slowly. e.g 7% rise in France, 4% in Italy and no growth in Germany. However …
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The Centre for Economics and Business Research (CEBR) predicted that in 2007 house prices could rise by £1,000 a month. Their argument to support this bullish view of the UK housing market is based on the strong underlying performance of the UK economy. In particular they point to the large city bonuses being paid out …
With House prices in the UK rising well above the rate of inflation. There are some in the industry who suggest that now is not a good time to start buying. Furthermore there are various disadvantages associated with home ownership. See these Disadvantages of buying a house However although house prices may be overpriced, in …
It seems that Harry Potter can work his magic even in the UK housing market. Studies have shown that in towns, associated with Harry Potter and the Potter films, prices have risen well above the national average. For example in Alnwick, where the first film “The Philosophers Stone” was made in 2001. There prices rose …
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Interesting article here on the Prospects of UK Housing Market. Evidence suggests that the UK housing market in particular can be subject to booms and busts. A crucial issue is whether inflation has reached its peak, or whether it will continue to rise. One issue worth considering is that as the £ increases to nearly …
House prices in the UK have increased at a remarkable rate since the slump of 1994. With the average house price reaching £200,000 many question how long prices can keep rising. It is important to understand the economic rationale behind the UK’s housing prices boom. Many of these arguments are relevant to other countries as …
House prices in the UK are continuing to rise above many people’s expectations. The average house price in the UK is now over £137,000. The recent rise in interest rates should help to cool the housing market, however there is increasing evidence many homeowners are less influenced by interest rates than previously thought. Although they …
There have been many reasons why economists have been predicting a gentle slowdown in UK housing prices. Groups such as Capital Economics have long argued that house prices are overvalued. Reasons for this include. 1. House prices have risen faster than earnings, making it more difficult for people to afford mortgages, especially first time buyers. …
This is an interesting prediction made in 2003 (when I bought my own house, so I’m glad I didn’t listen to experts) An interesting article I picked up searching house prices on google. Article from BBC predicting a house price fall of 20%, because house prices were fundamentally overvalued. Between 2004 and 1993 House prices …
Nearly 20% of all home are valued at greater than £250,000. This means that purchasing these properties incurs a stamp duty of 3% rather than 1%. This was published in a report by Halifax Bank, Britain’s biggest mortgage lender There are also 600,000 homes – 3 per cent of the whole market – valued at …
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The US has recently experienced significant falls in the value of shares. After 12 months of solid growth in share prices. Suddenly US investors are realising the economy faces underlying weakness. Part of the sell off came from even bigger falls in China. With the US economy increasingly dependent on Chinese capital flows a fall …
Are House Prices are Likely To Fall or Rise in 2008? Reasons why House Price Fall is likely 1. House Prices have increased faster than Earnings. House prices have risen at a very fast rate, therefore there are an increasing number of first time buyers, who are unable to buy a house. Therefore demand may …
The London Housing Market has often set the tone for the rest of the UK housing Market. Price rises in London have often percolated to the rest of the country. However, certain features of the London Housing Market make it unique to the rest of the country. These reasons explain why the London housing market …
The unrelenting rise in UK house prices leaves many first time buyers faced with a situation of average house prices being up to 10 times average income. The most general mortgage multiple by major banks is at the moment 5 times income. This mortgage lending is based on new criteria of affordable lending. If a …
The Problem of Empty Homes in the UK It is estimate that there are nearly 1 million empty homes in the UK. Often landlords leave homes empty because they don’t want to spend any money on redoing their house. However, an empty house is likely to lead to a depreciation in your asset and gives …
House prices in the UK are continuing to rise above many people’s expectations. The average house price in the UK is now over £137,000. The recent rise in interest rates should help to cool the housing market, however there is increasing evidence many homeowners are less influenced by interest rates than previously thought. Although they …
There have been many reasons why economists have been predicting a gentle slowdown in UK housing prices. Groups such as Capital Economics have long argued that house prices are overvalued. Reasons for this include. 1. House prices have risen faster than earnings, making it more difficult for people to afford mortgages, especially first time buyers. …
Factors that determine regional house prices 1. Supply of housing. Supply of housing is important for determining regional variations in house prices. E.g. in parts of London it is difficult to build new houses therefore supply is inelastic. This is one reason why house prices are more expensive in London.2. Demand for houses is varies …
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UK House prices have experienced a roller coaster in recent years. The economy is fundamentally weak, but house prices have often surprised analysts and proved remarkably resilient. The UK has a combination of rising number of households and limited supply which can push house prices higher, even during difficult economic times. Arguments that house prices …
In the lead up to the credit crunch in 2007, the ratio of house prices reached an all time high. By some measures, the average house price was up to 5 times average income. This occurred because of the rapid growth in house prices combined with an increased availability of mortgages which enabled people to …
UK house prices have stagnated since the credit crunch and prolonged recession. Property specialists Frank Knight expect house prices to take until 2017 to recover their pre-crash levels. Despite an improvement in housing enquiries, pre-Christmas the overall outlook for the housing market is fragile, with limited growth prospects. However, the UK housing market is still …
Why The Fall in House Prices will be Moderate Despite commentators predicting an imminent house price crash (and some have been predicting it since 2002) the UK housing market remains resilient. Despite falls in house prices, many argue that predictions of a house price collapse are misplaced and prices are likely to remain high in …
A look at why UK house prices have risen faster than inflation in the past few decades. House Prices Since 1991 House Prices Since 1960 Despite two substantial house price crashes in 1991-95 and 2007-08, UK house prices have continued to rise. Reasons for Rising House Prices Increase in the number of households. The …
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Since the peak in July 2007, UK house prices have fallen considerable. The main reasons for falling house prices are: Difficulty of getting mortgage due to credit crunch. Low affordability (high house price to income ratios) Economic recession and rising unemployment Nobody want to buy when house prices are falling. 11 In depth Reasons Why …
What happens if there is a fall in House Prices in the UK? If house prices fall, what will happen to the economy and homeowners? Are falling house prices always a bad thing? 1. Effect on Wealth. The first effect of falling house prices is to directly reduce the wealth of homeowners (wealth is of …