Political news not much affect the real estate market in the UK

In spite of the referendum on independence in Scotland and the upcoming parliamentary elections in 2015, property prices across the UK showed a rise in August 2014. Both fact rather contradictory effect on the market.

Global price growth in the country promotes growth of economic confidence, positive data from the labour market and ultra-low interest rates, which is the basis of pressure of property prices in different parts of the country. In addition, the program of the UK government “help to buy”, aimed at stimulating sales in the lower sector of the market is gaining momentum. Already 40,000 homes purchased under this program. People who buy a house under this program, account for just 5 % down payment of the value of their new housing, which of course is a good incentive to buy.

Among the limiting factors in the market – the new rules of mortgage lending, which include passing so – called stress tests. However, in this region there is a critical problem and stabilized. After some market failure associated with the mortgage loans under the new rules in April, by July the level issued has leveled off, and this process has no negative impact on the property market in the UK.

The new rules of mortgage lending and the risk of introduction of higher rates by the Bank of England could exert a small inhibitory effect on the real estate market of the United Kingdom, especially where require a high level of mortgage loan.

Royal Institute of Chartered surveyors has also reduced its forecasts for growth in property prices in England at the end of this year, what’s going on in the background of the more persistent rumors about the imminent rate hike by the Bank of England. If you have previously heard cries for rate hike in late 2014 , early 2015, now hear the cries of the rate increase in September.

The referendum in Scotland of course also has an impact on the real estate market Velikobritanii. If Scotland votes for secession, the market is even more filled with uncertainty, therefore, many realtors played the lead, inflating the price. Meanwhile, buyers are in no hurry to bet and await the outcome of the vote.

® Alice Morgan G. 16.09.2014

IMPORTANT! A NOTIFICATION ABOUT THE SECOND CITIZENSHIP

Entrepreneur visa. Tier 1(Entrepreneur)

Tier 2 General

Jobs in UK

Visa to the UK