Strategy and Management Consultants

SUPPORTING ENTREPRENEURS AND S.m.e.'s

Strategy and Management Consultants

SUPPORTING ENTREPRENEURS AND S.m.e.'s

Property

Property Consulting

Fears for UK property market collapse as US houses crash in value sparking fears:

Property sales in USA plummeted but experts predicted that the UK will be hit harder. Affordability levels are the worst since 1985, in the US. Mortgage rates have hit a 20-year high of 7 per cent, much higher than in the UK. Moreover, transaction in the UK are fairly stable and price declines are still to show up in the official index. Conversely, in the UK a drop of 12% is expected. At the current time, in USA the prices for properties are flat year-on-year. Even though the mortgage rates are lower in UK, the impact will be greater. The problem is the house prices h

by Think Tank Leave a Comment on Fears for UK property market collapse as US houses crash in value sparking fears:
Property Consulting

UK house price growth stalled between August and September:

Typical property values across the UK, have remained unchanged between August and September. The average property value was still £26,000 higher than a year earlier, according to official figures. Average house prices increased by 9.5% over the year to September 2022, slowing from 13.1% annual growth in August 2022. The fall in annual house price inflation is mainly because of the sharp rise in house prices in September 2021 at the end of the stamp duty holiday last year. The mini-budget towards the end of the month sparked unprecedented volatility in the mortgage market,

by Think Tank Leave a Comment on UK house price growth stalled between August and September:
Property Consulting

Property downturn hits construction as house sales plummet:

Demand for properties has been cut by half as the high mortgage rates are coming to bite those coming onto the property ladder. As a result, construction companies are pulling away from new projects which is putting the government target for housing at risk for not being met. This is being classed as a "transitional period" as the property market is adjusting to higher borrowing costs. If property prices fall and there are higher rates for raw material, there will be major employment cuts and hence, people unemployed. All factors pointing towards a recession. This is the r

by Think Tank Leave a Comment on Property downturn hits construction as house sales plummet:
Property Consulting

Average house prices have now fallen sharply, lowest since February 2021:

House prices recorded the biggest monthly fall in October since early 2021, according to an index by Halifax. The average property value fell by 0.4 per cent, marking the third month-on-month drop seen in the past four months. The average house price in October was £292,598, which was the lowest figure since May this year, although typical prices remained near record highs. Annual price growth among home movers fell to 8.9 per cent in October, from 10.3 per cent in September. Given the greater challenges for first-time buyers in deposit-raising, plus tighter requirements f

by Think Tank Leave a Comment on Average house prices have now fallen sharply, lowest since February 2021:
Property Consulting

A decade of rising house prices is over. The UK economy will feel the pain:

Fueled by a post-lockdown buying frenzy, the average UK house price hit a record £275,000 in December, a £27,000 increase on the previous year’s high. People buying houses for the first time benefited from cuts to taxes on their purchases and even though homes were more expensive, rock-bottom mortgage rates kept monthly payments affordable. The sharp and sudden increase in mortgage rates that followed has made it much more expensive to buy a house, leading some forecasters to predict a 10%-15% plunge in prices over the next year. Even though Kwarteng and Truss are out, alo

by Think Tank Leave a Comment on A decade of rising house prices is over. The UK economy will feel the pain:
Property Consulting

China’s GDP growth below target as property and zero COVID injuries mount the economy:

China's third quarter data has been delayed, spurring queries, as Xi Jinping takes power at the party congress. China's GDP is currently majorly below the third quarter target, the intensification of these stock fall come from downfall of the property market and the tycoons in the past quarter. There is huge concern for the world's second largest economy. In the past three decades this is, for sure, the lowest growth of GDP. There has been 'panic selling' of shares to grow the economy and also reduce the pressure for investors. Despite, creation of more local housing in th

by Think Tank Leave a Comment on China’s GDP growth below target as property and zero COVID injuries mount the economy:
Property Consulting

Property prices have increased despite mini budget fallout:

September's mini budge has sent the housing market into chaos with an increased uncertainty, mortgage rates soaring, pound tumbling, buyer's now lacking confidence. First time buyers have now pulled out of their plans to move, this has recorded as a 21% decrease. On the brighter side, the demand is still 24% higher than 2019. The jump is more than the average Brits’ annual salary, and comes at a time when rising mortgage rates are acting as yet another barrier to those looking to get on the property ladder. __________________________ What tips can we offer those who are

by Think Tank Leave a Comment on Property prices have increased despite mini budget fallout:
Property Consulting

Ireland has posed a winter eviction ban!

The Irish government has approved a ban on new evictions, which will last until March. This has left property owners threatening to take legal action. The eviction ban will not extend to tenants who refuse to pay rent or misuse property, furthermore, existing notices to quit will still be enforceable. Due to the energy crisis and other economical struggles landlords are leaving the sector, however, this ban is hinting to leave them in financial stress. . Support services were “maxed out” and people were falling into homelessness. The eviction ban was “the least worst optio

by Think Tank Leave a Comment on Ireland has posed a winter eviction ban!
Property Consulting

UK commercial property sector is plummeting due to interest rates:

Goldman Sachs warns that there is a £14bn price crash due to the exponentially rising interest rates. The investment bank predicted that values across the sector could fall by 15 per cent to 20 per cent between June this year and the end of 2024, effectively wiping up to £14billion off the portfolios of some of the industry’s biggest players. Goldman analysts said the sharp ‘price correction’ would come as a result of the rising cost of funding as interest rate hikes from the Bank of England made it more expensive for developers to take out loans. Oil prices were on the ba

by Think Tank Leave a Comment on UK commercial property sector is plummeting due to interest rates:
Property Consulting

Some UK property funds defer investor withdrawals:

Pension funds typically hold a small percentage of their assets in real estate, which can offer regular income like a bond but also the opportunity of capital value growth over time. But real estate can be tough to trade in and out of compared with stocks or bonds, meaning property funds have to have special mechanisms which give managers time to sell assets to cash investors out. Many pension funds opted to sell bonds to soothe their liquidity crunches but others are also looking to reduce their exposure to less liquid assets like real estate in the near term, according t

by Think Tank Leave a Comment on Some UK property funds defer investor withdrawals:
« Previous Page Next Page »