Holidays Expected To Lead Fall In Housing Prices
The current property woes in the UK could be facing some boost as the holiday season approaches
. Its a fact the property prices tend to fall during this period. Sellers are looking to sell their prices lower to attract buyers whose interest have basically dropped during the forthcoming holiday season, a recent survey revealed.New residential property listings have been outnumbering home mortgage approvals by 5 to 2 as pointed out by the website Rightmove. The site said that many potential property buyers are on holiday and the over-supply of property inventories are causing prices to fall to their lowest in August. The research revealed that the average asking price for UK properties no stand at 231,241 which is down from the 236,332 reported just a month back.
Director of Ritghtmove Miles Shipside was mindless enough to opine that there needs to be a spur to cause prices to rise. People are now disinterested in buying new homes because of high prices and this group is asking that the prices need to rise. As if it will help lenders bring in customers when the trend is clearly in favor of renting due to high property prices.
The biggest fall in property prices occur in the West Midlands with a 44% decline followed by London at 4.1%, Rightmove observed. However, prices north of England have grown by 2.6% and in the East Midlands by 1.5%. The survey comes on the heels of the Royal Institution of Chartered Surveyors which said that house prices have started their downhill trends in July while the Council of Mortgage Lenders reveals that lending had picked up in June.
It is clear that the era of home ownership is starting to wane, as a study revealed by a distinguished housing organization, the Chartered Institute of Housing. The current social demographics that have seen the emergence of what it calls in-betweeners are making house rentals increasingly the mode of home occupancy.
These are people with incomes between 12,000 and 25,000 annually too well-off to go into social housing but too poor to buy a house in the mainstream.
According to the statistics gathered by the Council of Mortgage Lenders, the average upfront deposit to get your mortgage approved stands at 35,000. This is definitely way above the capacity of the in-betweeners to afford. The estate agency Savills forecasts that this threshold will increase the proportion of Britons renting, if it hasnt already.
Savills predicts that by 2020, more than 20% of households will be rented while there are only 15% today. In contrast, the current 67% ownership will dip to 62% by the start of next decade.
A recent survey by the property inventory search site Zoopla points to the fact the while taking out a mortgage may be cheaper than renting in 74% of UK locations, areas like Brighton, Oldham and Huddersfield enjoy a more cost effective rentals than ownership.
Unless the property markets recognize this sector of the market and design their property inventories to cater to their income lifestyle, the recovery in the residential property markets may be long in coming. Hopefully the coming holiday will kick-start this recovery.
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