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Property News Update - May 2009

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Thursday, 28 May 2009 10:58
  • The Rightmove House Price Index, compiled from asking prices of properties as they come on the market via Rightmove's member estate agents, found that a lack of new sellers pushed up average prices by 2.4% in May. The supply of property coming onto the market was at a six-year low, as falling values eroded sellers’ critical loan-to-value ratios. Prospective buyers with nothing to sell were increasingly active, encouraged by owners of 59,072 properties reducing asking prices by 2% or more, with an average reduction of 6.8%. www.righmove.co.uk

 

  • Investment bank Goldman Sachs predicts a further 10% fall in residential property prices by the second quarter of 2010. This, it says, will be the bottom of the market. www2.goldmansachs.com

 

  • Money from multi-billion-pound government building programmes should be used to part-fund schemes to regenerate Britain out of recession, providing thousands of new jobs and homes, says a new five-point plan by the British Property Federation (BPF). With developers unable to raise debt and future government spending severely constrained, the BPF’s Regeneration Manifesto calls on public bodies to maximise the benefits of their committed investment by looking at a variety of ways to fund vital regeneration schemes that could provide employment and housing across the country. www.bpf.org.uk

 

  • The latest Knight Frank London Residential Review shows a marked improvement in the sales market since the turn of the year. Prices fell in the first four months of 2009, but at a much reduced pace, and like-for-like sales volumes are higher compared with the dark months at the end of 2008. The growing problem in the sales market is lack of stock. In the lettings market, however, an oversupply is pushing rents down. www.knightfank.com

 

At Re:locate’s next networking forum event, Relocation: moving the goalposts, on Thursday 4 June, Jon Neale, Knight Frank’s head of development research, will be giving an overview of the current property scene and the implications for those involved in relocation. Click here for details.

 

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