The real estate market in the UK – the best growth among European countries

The UK is one of the few countries in Europe where residential property prices in 2013 started strong growth. Exception – the Baltic States – Latvia and Estonia, where the growth in property prices has provided a stream of buyers from Russia who are looking for opportunities to invest their capital. Property prices in the UK for the last three months was higher by 1.9% than in the previous three months, taking the bar in £175546 for an average property. Yesterday, February 6, 2014 was published the latest data from Halifax Bank about the real estate market in the UK.

The progressive growth of real estate prices of different types and in all regions of the UK were observed from month to month during 2013 and continued in early 2014. As a result, in January 2014, prices were 7.3% higher than in the same period a year earlier.

In the report of the Bank Halifax indicated that the lack of supply in the property market in the UK is putting pressure on prices and at the same time, the number of new objects that the owners of the houses put up for sale increased slightly.

The increase in demand for residential property market in the UK is a consequence of complex reasons. First, it is an increase in the natural interest of foreign and domestic investors interested in primarily luxury real estate in London. Secondly, the impact on the real estate market, low interest rates, the Bank of England when the interest rate on the mortgage loans reached their historical low in 2013.

The third reason for such rapid recovery of the real estate market in the United Kingdom became a state incentive program of the real estate market “Help to buy” , which not only could help to become owners of housing for tens of thousands of British, but also contributed to the emergence of a competitive environment in the banking sector of mortgage lending. As a result, the market saw the return of consumer confidence, which is, of course, the signs of economic recovery. Came out surprisingly positive data on unemployment in the end of the year. These are positive factors favorably influencing the market and pushing property prices up.

However, slow wage growth and insufficient budget of many families does not allow to grow too fast and prices will curb inflation in the property market of the United Kingdom.

® Eleantra. 07.02.2014 g.

 The process of buying real estate

Land and types of ownership of property UK

Battersea Reach

Beaufort Park