Property Prices Drop By A Further 0.9% In August
According to new research, property prices have fallen again in August by an average of 0.9%. The drop is a blow to home owners who were expecting to see a rise in August. “With lending still at very low levels in the U.K, the price of property has to drop to allow people to buy. [...]
Rightmove experienced an impressive 40 per cent increase in profit during the first half of 2010. This was primarily due to sheer volume. Volume increased in estate agents advertising pounds, as well as more prospective buyers utilized the website. The only way Rightmove can see a poor second half of the year is if there was a sharp turn downward in the number of homes bought and sold; and that does not seem likely to happen.
Rental properties are seeing an increase as more families are finding it harder to enter the home owner’s ranks. In July the rise made the sixth consecutive month for increases. The cost of renting a property rose as well by 0.5 per cent.
Commercial property purchases are seeing a slight increase, and the popular West End of London is seeing a good deal of property change hands. Shaftesbury, a property group, is one of those buying up commercial property in the flourishing West End. Shaftesbury currently owns 11 acres in the area, counting within the property portfolio 500 shops, restaurants, and bars. They are looking to acquire even more, having recently purchased five restaurants and four shops.
Property group Derwent London has purchased Central Cross from Glebe Holdings. This marks a re-entry of Derwent London into the commercial property market for the first time in three years. The acquisition was 147 million pounds. Glebe purchased the building in 2007 at the height of property market boom for 224 million pounds.
East London is geared to see a faster pace of property values rising than other areas. This will be due to the 2012 Olympics. Improvements in public transportation and other improvements and additions will be factors in the value increase.
In Britain, especially in the London area there are about 130,000 homes that are valued at more than 1 million pounds. This 100,000 more than ten years ago when the estimated number was 27,000. If the economic crisis had not caused a loss in home values there likely would have been even more reported.
