38% increase in the number of buyers in England buying for cash

The residential property prices in the UK rose 0.3% in may , reaching the national average in the country £195166.

However, rates of rising prices at least twice lower than a year ago – in mid-2014 .

A Nationwide index published the latest data for may 2015.

It is expected that the growth rate of real estate prices in the United Kingdom in the long term will match the growth of salaries and, on average, 4% per year. However, much will depend on how fast housing will be delivered on the real estate market. Over the past year the pace of housing construction significantly behind the pace of the needs of British society, which is determined, including the growth of the population of the UK.

Nationwide, the report noted, the market of residential property in the UK an increasing proportion of buyers who buy for cash, without the involvement of mortgage lending. The number of cash buyers has increased in the 1st quarter of 2015 by 38%. At the same time reduced the share of housing purchased through mortgage loans. The increase in the number of purchases of houses in England for cash is associated with complication of procedure of mortgage lending, which took place over the past year, as well as problems in the labor market, when many people simply cut off from the mortgage market.

Meanwhile, record-low interest rates will facilitate the flow of capital from other, less profitable of activo in the market of residential property in the UK and stimulate the growth of the mortgage market in the medium term.

The lion’s share of buyers for cash makes your shopping outside of London. It’s kind of a surprise, Since London has always been the most attractive place for investment. However, we should not forget that the average cost of a unit of property in London – £408780 today is more than two times the average cost of a unit of real estate in the rest of the UK – £188566 , which sootvetstvenno is an important limiting factor for cash investors.

® Alice Morgan 04.06.2015

Investment in student housing

Investment in student housing. Luton and Richmond.

Student housing in Canterbury

Land and types of ownership of property UK

Tax on capital gains in the UK

Taxation legal. individuals in the UK

Our apartments and houses in England excellent quality

Why we recommend to buy new apartments and houses

The process of buying real estate

What “Stamp duty”