How was 2012 for you? If you were expecting things to get a lot easier in the housing market, you’ll no doubt have been disappointed.
As we start the New Year, making constructive predictions in the current property market is not easy. The huge uncertainty and overbearing gloom makes it all too easy to predict the gloom will stay forever. However, the one thing that the past tells us is that however stormy the current property conditions, things will improve and more often than not, create significant opportunities.
We cannot, however, ignore the current climate. You see, in this property market address
we will explore issues, predictions and opportunities of the UK property market, relating to significant changes from previous markets...
.....
“High inflation”
Inflation is high and probably higher than it is being portrayed. Debt is rising and some of
that is being hidden.
“Repossessions are higher than the last boom but at the moment they are lower than
the last crash which has surprised many economic commentators”
Sellers will have to drop their asking prices if they want to sell their property; this
has been happening for the last 4 years and will continue to happen into the foreseeable
future.
Sellers are going to have to drop their price even more if they want a quick sale, which
means “opportunity for well positioned property investors”...
.....
“Changes in the Local Housing Allowance”
Another big change that’s coming and has already started to affect landlords is the change
in Local Housing Allowance. With the advent of universal credit and the reduction
in housing benefits rate, there is a much different picture in terms of new tenants and new
tenant types for potential and existing landlords.
You see, historically, Local Housing Allowance had always been a good area for landlords
to concentrate on, due to the good level of high rents. This is significantly changing and
becoming a less attractive prospect for property investors...
“Sellers need help from Investors”
Home owners and sellers need help. Not just help from the government, but help from investors,
help from entrepreneurs who can help solve their financial problems and ‘kick start’
the economy and the property market.
You as a property investor are part of that cycle, and you will be able to win financially from
a brand position, if you can help these people to greater financial solutions.
Mark Homer: The latest government statistics show that we need over 300,000 new
properties in order to keep up with population growth. Last year, we only built around
100,000 new properties, which represented a significant shortfall.
People are travelling more, homes are becoming fragmented, people are getting divorced
and because people are moving more, households are becoming much smaller...
“Rising Rents & First time buyers [FTB’s]”
Mark Homer: Rents are rising to new highs. Many areas of the country have
experienced rental price increases exceeding 10%. Yields were at 6% in 2006 in our area.
Probably 4% in London. They’re often over 10% now, sometimes 12%. for standard buy to
let residential property.
I predict that this will continue for at least the next 3 years, as supply gets further squeezed
from a continued trend of reduced buyers. Increasing family sizes, higher immigration and a
lack of finance means that the problem will be further exacerbated.
First time buyers are now priced out of our market. Deposits are too high, credit systems
and their methods of checking applicants too stringent and the Government is letting this
housing crisis deepen as the months go on...
......
Download your copy of the full 34 page report, at no cost, here:
https://progproperty.infusionsoft.com/go/a270SPMA2013/
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