Nottingham Letting Agent Property Blog

According to experts, property prices in Britain are still too high, even though the market is set to remain in a slump that will be the longest since records began. The experts were polled by the Financial Times, and although 26 didn’t think property prices were too high, 44 thought homes in the UK were overvalued. In spite of this the very few predicted there would be any significant price falls this year. Another report by Knight Frank found the average price peaked in 2007 at £183,959, but is not expected to return to this level until 2019. Property prices initially...

According to recent research by the Halifax, mortgage repayments for a new borrower now account for the lowest proportion of disposable earnings for 15 years. Mortgage repayments for both home movers and first-time buyers stood at just 26% of disposable earnings during the second quarter of this year compared to 29% during the same period last year. The long-term average is 36%. In the third quarter of 2007 mortgage repayments accounted for 48% of disposable income.Lower interest rates combined with lower house prices has led to housing becoming much more affordable for those who are able to raise the necessary deposit....

New research has shown the average deposit needed by a first-time buyer has increased by 59% during the last 10 years to an average of £27,857, although those in London will need an average of £59,221. During the first six months of this year the average deposit needed increased by 1% compared to the first six months of 2011, and the study by the Halifax shows a third more first-time buyers will now be eligible for stamp duty since the holiday ended in mid-March. It found 44% of first-time buyers will now fall into this category compared with just 5% during...

Vince Cable, the Liberal Democrat Cabinet minister, has suggested a 1930’s style as construction boom could help lift the country out of recession. He thinks there is a strong correlation between today's situation and that of 80 years ago, when Britain was faced with rising unemployment and the consequences of a world economic crisis. However at that time there were considerable differences, as people were able to take advantage of low interest rates, and lenders were more willing to advance mortgages. This access to funding led to increased mortgage demand, leading to a construction boom which in turn created greater housing...