UK house prices hit record on London property surge

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#1
No wonder Singapore property investors are turning to Canada...

UK house prices hit record on London property surge

LONDON — House prices in the United Kingdom rose to a record last month as government measures boosted demand and London’s property market continued to surge, research and analysis firm Acadametrics said, but there are mounting concerns a bubble may be brewing.

Values increased 0.4 per cent from July to an average £233,776 (S$468,675), Acadametrics and LSL Property Services said in a report yesterday. In London, prices have risen 40 per cent from their trough in April 2009, compared with 16 per cent nationally.

“The property market has turned over a new leaf after years of restrained activity,” said Mr Richard Sexton, Director of LSL chartered surveyors unit e.surv. “The government has been pivotal in providing the aid that the market has been craving for many years.”

Acadametrics estimates that completed housing transactions exceeded 70,000 in August for a second month. That would mark the first time that sales over two consecutive months have been above that level since November-December 2007, when transactions were 104,486 and 84,524.

The figures echo other data from UK bank Halifax and LSL this week that show property values rising at their fastest rate for three years and first-time buyers at a six-year high.

Efforts by the government to support the property market include last year’s Funding for Lending scheme, which has helped to cut mortgage costs, and the Help to Buy scheme, which allows people to purchase a home with a deposit of as little as 5 per cent of the value of the property.

There are, however, critics of the scheme, including the International Monetary Fund, which has warned it could create a new house price bubble.

But the Bank of England has downplayed speculation that a bubble may be brewing, with Governor Mark Carney saying on Thursday that, while the market is improving, activity levels, mortgage applications and valuations are still low.

He also said that prices will continue to increase, and that the Financial Policy Committee of the central bank will be “vigilant”.

The Royal Institution of Chartered Surveyors said yesterday that the committee should limit annual house price increases to 5 per cent to prevent another property bubble. This could be implemented by capping loan-to-value ratios, mortgage durations or limiting the amount banks are allowed to lend, it said. Agencies

http://www.todayonline.com/business/uk-h...erty-surge
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#2
anyone been to those UK student housing investment launched here? they were promising 5-10 years rental guarantee and even guaranteed buyback after some years...sound too good to be true for me..should I believe and effect a buy?
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#3
(14-09-2013, 10:35 PM)pianist Wrote: anyone been to those UK student housing investment launched here? they were promising 5-10 years rental guarantee and even guaranteed buyback after some years...sound too good to be true for me..should I believe and effect a buy?

I didn't attend those launches. As usual, if it seems too good to be true, it probably is.

It sounds very similar with the recent "gold investments" in Singapore. Guaranteed interest, and option to buy back at same price.

YMMV
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#4
It is always a concern of bubble...

UK worried housing scheme could trigger property boom

LONDON — Chancellor George Osborne has asked the Bank of England to play a bigger role in ensuring that his controversial “Help to Buy” housing programme does not cause a new property boom.

The BoE’s Financial Policy Committee (FPC) will make annual assessments of the plan, starting next September, the Treasury and the central bank said on yesterday (Sept 26).

The committee had been due to advise on the suitability of extending Help to Buy only after its first three years of operation.

The FPC will also advise whether a price cap for properties covered by the programme and fees charged to lenders are appropriate.

Help to Buy was originally launched to help buyers of new properties and a second, potentially much bigger phase is due to begin next January. It will assist buyers who might otherwise be unable to afford a down payment on a home. Up to £12 billion (S$24.1 billion) of government guarantees could spur as much as £130 billion of new mortgages.

Since the second stage of the plan was announced in March, Britain’s housing market has shown signs of recovery, especially in London, where prices have jumped by about 10 per cent from last year ago.

Critics of the scheme have said it risks fuelling an unsustainable rise in house prices. Britain’s Business Minister Vince Cable has expressed his concerns about the programme.

Properties worth up to £600,000 would be eligible for the Help to Buy as announced in March. Some critics have said that lowering the ceiling would help lessen the programme’s impact on properties in London where prices are highest.

Earlier this week, the FPC said it would be vigilant about risks from coming from the housing sector but said it saw no danger signs for the time being. REUTERS
http://www.todayonline.com/world/europe/...perty-boom
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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