The real estate market in the UK is optimistic

Homeowners in the UK are still confident about prospects for growth in property prices, even despite the fact that the high probability that in the next 12 months will be increased rate of the Bank of England.

Ongoing for more than a year talking about raising rates by the Bank of England are pushing many people to take buying decisions at the historically low rates of mortgage lending. Amid such confidence of buyers, inflation in the housing market in the UK has reached 9% per year and the average price of a residential property was set at £204674 pound. 68% of the interviewed people believe that housing prices will be even higher in the next 12 months and only 5% believe that prices will fall. At the same time, gradually decreases the proportion of people who believe that in the next 12 months would be a good time to buy property with 56% in the second quarter of 2015 to 53% in the third quarter of 2015.

Among the sellers of real estate, on the contrary, optimism is gradually reduced. Despite the positive expectations regarding the growth of housing prices, the number of people who believe that in the next 12 months good time to sell fell from 59% in the second quarter of 2015 to 52% in the third quarter.

In terms of regions, the lowest expectations for growth in property prices in the UK – in London, only 40% of people expect a rise in prices in the capital of the United Kingdom. Positive sentiment in Scotland, for example, is 77%, and in the North of England to 58%. Among sellers, on the contrary, the best of mood prevails in London and 64% of sellers have a positive attitude regarding the sale of his real estate in London over the next 12 months. Among Scottish sellers of such – 48% 47% Northern Ireland and 43% in the Central part of England.

The growth of housing prices, which is observed now in the UK, caused not only by low mortgage rates, but a lack of supply, which continues to lag behind demand. Unemployment in Britain is at its minimum and this is a sign of healing economy and high demand for housing.

® Maxim Savitsky. G. 29.09.2015

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