Forecast of the UK property market has been improving

Advisory Advisory non-departmental public body of the UK, which is official economic forecasts, Office for Budget Responsibility (OBR) has revised its forecast for growth in property prices in the UK for the next 5 years upward. Now, according to a new forecast, the average expected increase in prices by an average of 30.8 per cent.

Previously published forecast promised a 27% growth in the next 5 years.

According to the OBR forecast in 2014 and 2015, expected price growth of 8.6%, in 2015-2016 – 7,4%, and 4.3 % in 2016-2017, to 3.7% in 2017-2018 and 3.7% in 2018-2019.

By the end of the projection period prices for residential property in the UK is expected to be 0.5% below their pre-crisis levels, given the actual ratio of price growth and income growth of the British, the property prices by the end of the forecast period will be 2.3% below their pre-crisis peaks.

Improved forecast and the number of transactions in the market. According to the report, the number of transactions in the property market in the UK will be around 1.28 million, which is approximately 6% more than the forecast presented in December 2013.

Improving forecasts for price growth and market activity reflects the additional measures to stimulate the residential real estate sector, initiated by the government, and was the result of record low interest rates, which continues to keep the Bank of England.

A number of measures initiated by the government aimed also at improving the situation with the supply of housing. So the UK Chancellor George Osborne pledged an extra £6 billion for the program “Help to buy”, which had been welcomed by developers.

Another measure is the assistance to small developers of £500 million Small developers more vulnerable in the market because the loans are given to them at higher interest rates, making it difficult to find investors.

The third measure is to help people independently build a house. Such people there are in the UK for about 8% of all new buildings. Meanwhile, in the United States, approximately 40% of houses people build themselves. The UK government intends to welcome self-build homes a loan for construction on favourable terms.

Comprehensive state support for all sectors of the residential construction industry in the UK will have the effect of very many Brits will finally be able to move into their new home.

® Alice Morgan 21.03.2014 G.