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Property development is a route some people take for interest in a house. An area which hasn’t been built on is usually the more popular place in which properties are built, as it is quieter, and is easier for the property developers to get in and out of the area. Investing in a property being built is hit and miss.

If the area proves popular in the market, the price of the property can be negotiated, and a massive profit can be made, as the property is popular. If the area is unpopular, or hasn’t got the right interest, then the amount in which the property is worth may decrease, meaning a loss in profits.

Buying a newly developed property is a common occurrence in the market. Newly developed properties are popular due to the modern look that they have, as well as the amount they are worth.

Flats and apartments are popular bought newly developed properties as they can be loaned out to tenants at a fairly high price, resulting in profits for the owner, as well as building a good reputation for the property and area. A property which has just been released to the market in a town, will be a lot cheaper usually due to the amount of neighbours and noise that the area surrounding the property receives (i.e. traffic, punters etc).

Scotland commercial property has now seen its first quarter of positive capital growth in over two years. This falls in line with the rest of the UK which also sees a positive growth with capital values rising 1.5%. on a downside the report also revealed that the rental values have not returned the positive growth. Over the past year rental values have fallen by 4.2% compared with -8.4% at UK level. The investment made in the Scottish property has improved but along with the rest of the UK its’ been a very slow increase. The lack of investment in the Scottish property in 2009 is sizeable but looks less and less likely to hit the year end figure of £1 billion.

British Land is the UK’s biggest Landlord, a recent report shows that the value of its property empire rose 1.4% in this years second quarter to a estimated £8,29 billion.

This increase is the first of its kind after more than two years and follows a crash of 45% back in June 2007. The chairman of British Land Chris Gibson-Smith today called the property crisis the worst storm in real estate history.

The value of the property portfolio includes offices across London and retail parks across the country was down 2.4% in the first half. A former banker with Barclays and Goldman Sachs said that the worst is probably behind us. Its in this light that British Land said 70% of its properties increased in value after June 2009.

In Perthshire the property market is on the rise according to some industry insiders. It is reported that sales in October reached £20m according to Perthshire Solicitors Property Centre. This accounts to more than the first three months of a year. The average sales price for the area reached £176,500 which is up from £153,000 in the second quarter.

The royal institution of Chartered Surveyors revealed that more properties were being put on the market – this was confirmed by 16 chartered surveying companies which also suggested the slump in housing prices had bottomed out and finally property values were on the increase.

Afghanistan is experiencing a boom in estate prices which defies the downward trend in property that many other parts of the world is seeing and has experienced for the last 2 years. Its hard to imagine why anyone wanting to live or invest in a city which has been renowned for violence and war. In some parts of Kabul, prices have risen by 75% in the past year which is partly due to the prices that international agencies are willing to pay in order to buy properties in the best locations. Alongside this wealthy Afghans which have seen there properties prices drop in Dubai are putting money back into Kabul

Estate agents are starting to smile again as the UK property market starts to rise. Last year at this time estate agents were struggling to sell one home each week, they also had to cut staff. They had people wanting to sell with no one buying – it now seems the other way round. One estate agency in London said that they registered over 300 buyers in one month. Two years the mortgage slump crippled sales and staff went to work away from the property market. As people now start to get mortgages the buyers are back. Many agents have said that parents have been the biggest contributors to the markets as it’s there help in the deposit which allows there siblings to buy a house.

With buy to let mortgages being ready available before the downturn in the economy the federation has asked that all they now are regulated in the same way that mortgages are done.

With them being considered a business opportunity they did not attract the same guidelines of affordability as mortgages.

The BPF wants the FSA to regulate them the same way it does its mortgages so that when the economy has gained in strength banks will not have the same approach to lending and hopefully avoid them lending money irresponsibly.

Ian Fletcher of the BPF said

Many lenders simply threw money at buy-to-let borrowers during the boom without sufficient checks on who they were lending to or what they were lending for.

He also added

we need to make sure the property-fuelled meltdown doesn’t happen again. Professional landlords have suffered as a result of banks refusing to lend. If landlords can’t expand or invest in new homes, it hurts all areas of society.

With economic downturn many investors in the real estate industry are not completing on property deals because of cash flow but now they have something to fear, lawyers have warned if they do not complete on their deal they can still be forced to buy then after a court injunction.

When house prices continued to rise many buy to let investors were very quick to jump on the band wagon and buy houses and now that mortgages are much harder to get and many of them how have signed contracts have realised that the profits are not as high as expected and wish to pull out.

Developers have told them that this is not an option as they have committed to build them and they can not apply to court and ask for a specific performance which will make the buyer continue on the contact and complete the agreement .
With the down turn all developers are looking into how they can protect their assets and seek help from the courts to enforce them.

House prices over the last few months have been enjoying a steady rise but this is going to be short lived and they will soon drop again.

The predictions said that the house market would fall by 30 per cent from October 2007 boom and they still say that house prices even though have gone up slightly still have around 17 per cent left to fall.

With unemployment rising and is set to continue till 2011 and with peoples wages not rising and the poor availability of credit will only bring down house prices, as the recent lack of cash rich buyers and not a great supply will only add to the downturn.