The Bank of England has denied the rumors about a bubble in the property market in the UK

The financial policy Committee of the Bank of England made an official statement that the real estate market of UK, there is no immediate danger of a financial bubble, but you must carefully follow the trends in the real estate market.

Talk about the bubble arose due to a number of concerned publications in the press about too rapid price increases, particularly noticeable in London and the South East.

In the opinion of the Committee on financial policy, on the residential property market in the UK now observe the process of recovery. The market gained momentum and will continue to grow, but it is under control, restraining himself by indicators such as the level of activity, unemployment and growth in real incomes.

In this regard, the Committee decided that it will closely monitor the development of the housing market and try not to miss vulnerable moments.

The average for the UK prices grew by 3.3% over the last year, but in London by 10%. But in some areas of London, growth was significantly higher.

For example, as evidenced by the major indices, the strongest price growth over the past year were observed outside the elite areas of London. The largest increase, 40% , were recorded in primrose hill, near king Cross in Wandsford, where prices rose by 36% and Battersea, where the increase amounted to 28%.

Prices in 2013 continue to grow, and in the elite areas of Central London, but they have been growing at a pace. Luxury apartments in Belgravia has risen by 13%, in Chelsea by 10% and 5% more expensive luxury nevizhimosti in Holland Park.

Prices in Central London are now so high that sellers do not sell the apartment and change them. For example a one-bedroom apartment in Central London can be exchanged for a house in neighbouring areas such as Fulham, primrose hill, Wandesforde and Battersea.

Lack of offers of luxury homes coming onto the market, led to the fact that buyers are forced to participate in a sealed competitive auctions, which, consequently, leads to higher prices. Ripple effect this situation applies to greater London, where there is also growth of prices.

The Bank of England Governor mark Carney and the Chancellor of UK George Osborne expressed concerns about a bubble in the property market in the UK, as the level of market activity is still below its pre-crisis peaks.

Earlier this month the Royal institution of chartered surveyors called on the Bank of England to take measures to slow mortgage lending if growth in property prices nationally of more than 5 % per year. Однакоэтопредложениеподверглосьсерьезной criticism.

® Helen Antre 26.09.2013