As one who has never relished delivering bad news, I’m thankful we don’t live in ancient Roman times, as I’m sure that as the bearer of the following property data I would be thrown into an arena to be eaten by lions, (although I do have some fab gladiator sandals for such an occasion).
Latest statistics show a bleak picture on the overall property scene. For the first time in the past 15 months, house prices have fallen by 0.1%. According to data from Hometrack, house prices in London dipped further by a 0.2% decline. While a 3.6% increase of new properties enter the market, a 1.3% drop of new buyers suggest reason for the aforementioned fall in house prices.
Forecasts by NEISR (The National Institute of Economic & Social Research) predict that house prices will finally revert to their 2003 values by 2015 and that a double-dip recession is probable with house prices declining at a more rapid pace. As the general consensus appears to lay blame at the coalitions door following their emergency budget in June, public spending cuts and tax hikes have left little faith in the present economy.
Financial Director for Legal 4 Landlords, Binder Dhillon said, “As property prices decline, the private rental sector is seeing a surge as tenants outstrip the supply of housing stock. Industry research indicates that rents have increased and are back to their 2008 levels, though landlords are still showing concerns about any intended rise in interest rates and constraints by banks and LHA policies.”
Unfortunately commercial tenancies are performing as the poor relative to the residential sector as tenant demand has fallen according to a survey by the Royal Institute of Chartered Surveyors (RICS), with office property in London showing the most decline.
As we reach the end of July, it seems the dismal weather is not the only gloomy forecast predicted.