This month’s news on mortgages and property prices is encouraging and marks the first steps towards recovery in the UK property market.
(PRWEB UK) 6 June 2013
Commenting on the news on house prices (Source: Bloomberg) and the mortgage market (Source: The Independent), Loxley McKenzie, Managing Director of Colordarcy.com said, “This month’s news on mortgages and property prices is encouraging and marks the first steps towards recovery in the UK property market.
From an investment point of view, however, much of this positive news is driven by a rise in property prices in London and the South East rather than the wider UK. It will be sometime before the UK begins to see the broad-based recovery in home prices seen in the US.”
According to Colordarcy analysts, the two most important drivers of a sustainable recovery in any property market is demand and the availability of credit. Until now recovery in London and the South East has been driven by foreign investment as investors began to view London as a safe haven.
This is still the case but the second most important ingredient has been the loosening up of the mortgage market with several lenders competing for customers by offering low rates of finance (Source: Independent, At last, some good news: UK mortgage market is on the up again, 2 June).
McKenzie continued, “It is too early to get carried away by this more positive news, at least until there is evidence of a sustained recovery in the wider UK. GDP growth in the UK is still weak and household incomes have not risen by nearly enough in recent years.
There is also still the threat of interest rates going up which could yet put the breaks on any recovery in the UK.”
Colordarcy are currently offering a low risk, hands-free UK property investment that offers a 10% guaranteed income for 10 Years. Smithy Bridge is a new care-home development in Greater Manchester which allows investors to benefit from a 10% annual return from just £25,000.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
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