However, although the current UK property market is at its worst ever for some considerable time there are many people who are still willing to buy. Certainly for those who are looking to invest in property this may be the ideal time to do so. With house prices still falling and so many people being faced with homes being repossessed deals are certainly available.
So what are the longer term prospects for the UK housing market? Price Waterhouse Coopers research has run different scenarios, from an increasing market to a declining market. I believe the most likely outcome is for some short term property price reductions and then recovering over the next few years. Therefore a huge collapse in the market may be unlikely, certainly not to a level below 1st quarter 2006 prices, but certainly, there is little potential capital uplift in UK property values for the foreseeable future. First time buyers income needs to catch up and at current rates of wage inflation this could take up to 10 years for UK property to be as affordable in terms of price to income ratio as it was in 1997.
But what of the current state of the UK property market? There remains a demand for competitively priced family housing and affordable apartments below £90,000 in well designed developments. Above averaged price apartments still remain difficult to sell, developers are cutting their prices dramatically. However, this is probably less to do with the market and more in relation to design.
Plus when it comes to the current UK property market because mortgage lenders are becoming more cautious this is what will result in house prices falling further this. But hopefully by the start of 2010 then we should start to see improvements which could result in increases in sales.
At first glance, however, some of these trails seem to run through private property, in some cases running through someone’s back yard. These are not misprints but form part of a centuries old legacy of UK property law – the public right of access through private land.
Careful management of distributions going forward is essential, and offshore trustees should consider taking advice on this issue. Trustees should obtain valuations of trust assets, and consider whether the rebasing election is a worthwhile exercise. The election is particularly likely to be beneficial if UK property is held through an underlying company.
The UK property market is now viewed as one of the most expensive markets in the world. Year on year increases make buying property more difficult for first time buyers. Remortgaging your property can be a major expense so best to check carefully what you are doing with qualified people and companies.
Ajay Ahuja is not just a rogue UK property sourcing agent currently being successfully sued by many of his victims. He is also a bad landlord. After reading the following damning report about Ajay Ahuja I can only wish you the best of British luck if you are unfortunate enough to be one of his hundreds of tenants;
Currently when it comes to the UK property market only those sellers who are prepared to accept that their home is worth far less than it was last year are going to benefit. As mentioned although house values are going to fall another 10% in the coming year the RICS predicts that sales of homes will begin to pick up once more.