Owners face more property value falls – Reuters poll
http://bit.ly/P6ucA8
LONDON (Reuters) – Britain’s beleaguered owners must wait until 2014 no less than before they see a rise in the value of their properties, as weak demand and tight lending situations keep the market in check, a Reuters poll found on Tuesday. Home prices, which have dropped a couple of fifth since their peak five years ago, will fall another 1.6 p.c this 12 months and only hold steady in 2013, in accordance with the poll of more than 20 market watchers taken in the past few days. In a March poll they had been seen declining 2.0 p.c this 12 months and rising 1.9 p.c next. Housing has long been a bedrock of client wealth in Britain and average prices tripled during a property increase in the 10 years to 2007. But they are currently around 0.7 p.c lower than they had been a 12 months ago, mortgage lender Nationwide mentioned late last month. “Some further downtick in property prices is anticipated this 12 months amid weak demand and tight credit. Nonetheless, a degree of undersupply available in the market will stop sustained sharp value declines,” mentioned Melanie Bowler at Moody’s Analytics. The number of new properties being put in the marketplace firstly of this month was the best in years, property website Rightmove mentioned, but remains to be only about -thirds of the mid-2007 level. Demand has tailed off, despite record low interest rates, as banks have been reluctant to lend money to patrons, imposing harsh situations on new mortgages. Mortgage approvals, a very good gauge of future housing market activity, aren’t expected to rise much past their current rate of about 50,000 per month. The poll showed approvals at 52,000 in six months’ time and 55,000 in a 12 months – around half their average stage during 2007. The Bank of England has held interest rates at just 0.5 p.c for more than three years and it's not expected to move them until 2014 at the earliest as it struggles to kick-start growth. Britain’s economic system fell back into recession firstly of the 12 months and it will see only tepid development over the coming quarters, while unemployment levels have only nudged down from a 17-12 months peak seen late last year. The weak outlook has been exacerbated by a tricky government austerity drive to eliminate a budget deficit that was more than 10 p.c of GDP when it came to power years ago.
http://bit.ly/P6ucA8
LONDON (Reuters) – Britain’s beleaguered owners must wait until 2014 no less than before they see a rise in the value of their properties, as weak demand and tight lending situations keep the market in check, a Reuters poll found on Tuesday. Home prices, which have dropped a couple of fifth since their peak five years ago, will fall another 1.6 p.c this 12 months and only hold steady in 2013, in accordance with the poll of more than 20 market watchers taken in the past few days. In a March poll they had been seen declining 2.0 p.c this 12 months and rising 1.9 p.c next. Housing has long been a bedrock of client wealth in Britain and average prices tripled during a property increase in the 10 years to 2007. But they are currently around 0.7 p.c lower than they had been a 12 months ago, mortgage lender Nationwide mentioned late last month. “Some further downtick in property prices is anticipated this 12 months amid weak demand and tight credit. Nonetheless, a degree of undersupply available in the market will stop sustained sharp value declines,” mentioned Melanie Bowler at Moody’s Analytics. The number of new properties being put in the marketplace firstly of this month was the best in years, property website Rightmove mentioned, but remains to be only about -thirds of the mid-2007 level. Demand has tailed off, despite record low interest rates, as banks have been reluctant to lend money to patrons, imposing harsh situations on new mortgages. Mortgage approvals, a very good gauge of future housing market activity, aren’t expected to rise much past their current rate of about 50,000 per month. The poll showed approvals at 52,000 in six months’ time and 55,000 in a 12 months – around half their average stage during 2007. The Bank of England has held interest rates at just 0.5 p.c for more than three years and it's not expected to move them until 2014 at the earliest as it struggles to kick-start growth. Britain’s economic system fell back into recession firstly of the 12 months and it will see only tepid development over the coming quarters, while unemployment levels have only nudged down from a 17-12 months peak seen late last year. The weak outlook has been exacerbated by a tricky government austerity drive to eliminate a budget deficit that was more than 10 p.c of GDP when it came to power years ago.
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