The real estate market in the UK is adapting to the new rules

The UK government, trying to keep his campaign promises to solve the issue of affordable housing strongly encourages young families and those who buy housing for the first time. The government’s efforts of reforming of the market of real estate of great Britain has begun to bear fruit and in March 2016 the first-time buyers buying a house, have been unusually active – their activity increased by 15% compared to the March 2015 year and by 41% compared to February 2016.

The increasing distribution and recognition scheme gets government assistance to buyers of property in the UK “help to buy”, when the government allocates 20% down payment to purchase real estate as a down payment on the terms of an interest-free loan.

In addition, gaining momentum refinancing. The amount of money granted by banks for refinancing buyers of property in the UK increased by 33% for the year, but especially significant growth of lending in recent months. Many homeowners actively seek opportunities to refinance before the entry into force of the new tax restrictions.

However, in March, revealed a failure in the market of real estate investing “Buy to let”. Investors, knowing that will not make a deal before April 1, the date of entry into force of the new rules, it ceased to take an interest in the property for investment. The volume of evaluation activities declined in March compared to February by 27%, and in comparison with March of last year by 36%.

In this regard, against the backdrop of high demand, low interest rates and lack of properties for sale, it is expected that across the country property in England will rise in price . Investors, after months of violent activity will take a little break, however, attractive credit terms and rising rental prices also enable them to invest and, according to forecasts, by the end of 2016 and returns to normal investors adapted to the new conditions of existence.

® Alice Morgan G. 11.03.2016

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