Latest 2009 Property Analysis Proves Optimistic for 2010
Mar - 31 | 
9 comments. | 
UK Property
The overall mortgage lending statistics for 2009 show a decline of 43% from £253 billion in 2008 to £143.7 billion in 2009. However, in December there was a positive uplift in lending figures.
This was propelled by an intense period of growth of year end housing completions, hence a staggering 14% increase of mortgage lending in comparison to November. This is 3% higher than December 2008 and the first time since October 2007 that the annual figures have converted into positive comparison numbers. It will be interesting to see how the re-introduction of stamp duty into the market affects the initial set of mortgage figures for 2010.
The stamp duty could also affect rental investment yields in the UK. In fact average yields have contracted around 85 basis points over the course of 2009. Although in the last quarter initial investment yields have remained stagnant. The wider country market is performing better than London with the average yield of 4.7% against 3.9%. Prime London properties are slightly below that with an average of around 3.7% for 2009.
However the latest price tracker research highlights an average sale price increase of 3.5% in the final quarter of 2009, which is the third consecutive quarter of increasing prices. This reinforced the full year price increase of 12% which is a huge difference from the dramatic 20% decline in 2008. The area of the sales market which led the way for price increases was the larger units. These 4-bed or larger properties experienced gains of more than 14%.
Another area of growth or more specifically an ascent back to previous levels is the recent results of the letting sector. The second half of 2009 ensured that the rental valuation figures finished the year practically the same as the beginning with only a 0.9% decline. This is impressive if we consider the acute declines of 2008 and early 2009. One factor that contributed to the price gains is the 38% increase in applicant competition due to the low property stocks. As the economy stabilised and confidence grew there was more demand from the corporate sector and also ex-pats returning to the country.
The housebuilders and their noted rise in orders for new build properties further illustrates the increasing competition in the market place. Taylor Wimpey, a major housebuilder ended 2009 with an order book reportedly 28% up versus the same period in 2008. Consequently, selling prices increased which were attributed to the low stock levels for new builds and underlying price inflation.
Despite rental management figures still maintaining that completions are running at a low level, another housebuilder, Barratt Developments affirms the increase of orders. They reported a rise of 43% of planned sales with net private reservations per active site increasing 8.9% over the same period.
In summary, the last few months of 2009 built on the steady growth that was seen throughout the year. In turn this is renewing confidence that the UK property market is a good investment for buyers and vendors alike
Sure you can, just need to know and be well informed on all important national and international companies and also from the surrounding environment, ie the political, economic, cultural and natural phenomena that can influence the business, etc. If the person is well informed about all events will have the chance you will do well to invest their money in the bag.
Figures show that mortgage demand in Turkey is raising both from the part of locals but from overseas home buyers as well and Turkish banks are quite pushing for it. However, the mortgage industry being quite new in Turkey, compared to the UK or other western countries, the process still takes some time to be completed with lots of paper work involved.
Actually there was an increase, but I think the decline is still with his claws bared, but then I see that this market will rise from the ashes, although that is a vital sector and impossible non-existence, a hug and good business for us all
今天天气不错，心情也很不错，文章更不错
Nice Blog.
It is unbelievable to think that lending statistics fell by 43%, up until Decemeber 2009, where they began to increase. I have heard mixed reviews with regard to property prices increasing once again in the UK. The South East and London is said to be on the rise and areas such as the North and North West are still struggling to find their feet.
Only time will tell as to whether the property market will fully recover from this.
At the end of 2008 we interviewed more than 20 property experts across France to see what their predictions for the 2009 property market were. We have recently compiled an article where we disclose the reality of the 2009 French property market, and our French Estate agents’ predictions for 2010.
Hello Frd.
Sure you can, just need to know and be well informed on all important national and international companies and also from the surrounding environment, ie the political, economic, cultural and natural phenomena that can influence the business, etc.
the high level of unemployment causes the decline of the mortgage lending rate, without any improvements, property market in the UK and Ireland will continue to fall.
I think its fair to say that competition is returning to the UK’s mortgage and remortgage market for the first time since the credit crunch crisis. For example, this weekend’s Sunday Telegraph and Financial times said that Barclays and the Royal Bank of Scotland have launched low tracker and fixed rate deals.