UK Property

During the early 1990s the property market in the UK hit an all time low, mortgage rates where high and property prices dropped quite dramatically, many homes were repossessed, and many UK homeowners ended up owing more on their mortgages than the value of the property. Although this was a bad time for homeowners, first time buyers and investors took advantage of the low property prices and bought property at knock down prices.

During this period, it was a buyers market and anybody who wanted to purchase UK property including first time buyers had a good selection to choose from, and for the first time in many years buyers could look at locations that they never would have been able to buy property in previously. Those who were lucky enough not to be in negative equity were able to invest in a second property either in the UK or abroad and as so many properties in the UK were in need of renovation, investors and developers quickly realised that buying property and renovating it could bring good rewards.

The UK property market started to recover slowly and once again, house prices began to rise making homeowners feel more secure about the future, currently the British property market is stable and house prices increase steadily. However first time buyers are now finding it very difficult to get a foot on the property ladder as house prices continue to rise and incomes remain low. Mortgage lenders have seen this decline in first time buyers and have acted by offering longer repayment periods and other incentives in a bid to encourage younger buyers to take the first step onto the property ladder in the UK.

Investors who bought to let during the 1990s and have continued to rent their property are now enjoying a rental income as many young people opt to rent rather than buy. Buying property in the UK is a good investment but locality plays a very important role when it comes to renting or selling the property. A good-sized family property will sell easier if it is close to local schools, shops, public transport routes, and motorway networks. A terraced house may be ideal for a young couple with no children but it may be worth considering the rental potential if there are hospitals or colleges close by with students, nurses, or doctors who want to rent property on a long or short-term lease.

There are extra charges when buying and selling property in the UK which need to be taken into consideration, estate agents usually charge between 1 and 2% of the purchase price, solicitors fees vary so its worth shopping around, the actual process of buying and selling property in the UK is relatively simple but can take up to three months to complete, it is advisable to use a solicitor to ensure that all paperwork is correct before exchange of contract takes place and a completion date can be agreed with all parties.