Deloitte spokespersons also suggest their predictions may be seen as overly optimistic, but Anthony Duggan, partner and head of research at the firm, went on to clarify saying;

“We saw large downwards shifts in pricing during 2012 particularly for secondary stock. It appears these values are now getting close to a ‘mark to market’ level where investors begin to see some value and are willing to transact.”

Duggan went on to point out shortages in the Grade A quality stock, pricing barriers of ‘prime’ stock and ensuing entry levels, and an emergence of investment opportunity – widening of the UK investment market. The bottom line for the real estate economy in the UK, being similar to that in the US and EU – investor confidence will be key to any recovery. Given this bottoming out aspect, it seems fairly clear Deloitte’s predication make some sense.

For more information the reader should consult the original Deloitte release here, or contact:

Sue Gibson, Deloitte LLP, +44 (0) 20 7303 3156, or email her at: sugibson@djdeloitte.co.uk

Homeowners struggling to meet their mortgage repayments come under the government’s plan can sell some or all of their home to a housing association in order to rescue their mortgages. The association then rents the property value back to the homeowner at a more affordable rate. Radian, allocated some £30.6 million from 2012-14, can cover some 398 cases under then plan. Lindsay Todd (upper left), CEO of Radian, had this to say about the report:

“When we introduced this scheme in May 2009, we quickly realised it was a service we needed to get involved with. We have now completed 505 rescues, which represents about 3 per cent of our stock, so it is a significant investment.”

Apparently the low uptake of the schema by homeowners seems to be out of fear of the added or different financial risks involved. Run in collaboration with local councils, the mortgage rescue plan may not be for every homeowner, but it seems clear ANY scheme beats losing one’s investment totally. According to the government’s plan, they can also buy back a home for 90 percent of the suggested value and then rent it back to the former owner for 20% less than their mortgage payment was.

Readers can learn more about the program via the Department for Communities and Local Government as well. You can also learn more about the plan via this PDF.

The Scottish Property Federation reports scarecely more than £1.9 billion in transactions having occurred during all of 2011, that number down some 25.5 per cent on a 9.5 per cent drop in transactions overall compared to 2010. On a whole financial news from Scotland has been dismal of late. The Guardian reported on the North of England having been hit hardest overall in this recession, telling of rising unemployment and discontent with budget cuts. All Scotland is cast now into a scenario not unlike Greece, Ireland, Spain, and other EU countries.

Lending on real estate has been tumbling for more than two years now according to numbers from the Bank of England. And on the residential side of the real estate market in Scotland, things are not looking any brighter. Falling prices by the end of 2011 signal harder times for an overall real estate market stricken like all else in the North by the biggest economic downturn since the Great Depression, maybe ever.

To  make matters worse politically and banking wise, the Daily Record reports state owner Royal Bank of Scotland raking in over £530million pre-tax profits for 2011. With all of Scotland still reeling to dig out of a money disaster, RBS is being raked over the coals for sacking 21,000 employees then forking over huge bonuses to their top decision makers. RBS is not stranger to upheaval and ill fated decisions, the bank reported the largest ever single loss for any UK bank of £24billion after the takeover of Dutch bank ABN Amro.

Taken on the whole, the news of Scotland’s continued woes has to weigh heavily on the UK and the world in general. RBS boss Stephen Hester’s huge bonuses, Swiss ski chalets, public outcry, RBS and the entire Scotland banking sector would seem suspect for many. In 2010 Hester alone took home in excess of £6.5m in bonuses and pension payments. The UK Government owns upwards of 80% of RBS.

We will update this news as the story develops. We leave you with Hester reporting on 2011 results for RBS.

Prologis Park Pineham, Northampton, DC139

According to the press from the companies, Gary White, Dalepak’s Co-Managing Director, had this to add about the deal:

“The decision to move into this new Prologis building is a tremendous step forward for our business. We already have a skilled workforce and highly sophisticated technology. Now we have the building to match.”

For those unfamiliar with Dalepak, the company is a leading UK warehousing, distribution, and contract packing outfit. Freight forwarding and Internet fulfillment to Integrated solutions, the company does a lot more than “just putting things into boxes. Phillip Dunne, President of Prologis Europe, added this:

“By understanding Dalepak’s requirements, we were able to provide a new, energy efficient facility that will be an ideal fit for their headquarters. With this agreement, only one building now remains available in our entire UK development portfolio.”

Prologis has some 21 plus million square feet of operating space, as well as nearly 500,000 square feet being developed in the UK alone. For more information on this news, please consult the original PR Newswire release here.

Image courtesy Prologis website.