The housing market in the UK will depend on the state of the British economy in 2017

The state of the market residential real estate in the UK will depend on the state of the British economy in 2017. As announced earlier, in 2017 will begin the process of withdrawal from the European Union.

According to careful preliminary estimates Nationwide, the second biggest mortgage lender, in 2017 it is expected a modest price increase of 2%. Nationwide chief economist Robert Gardner believes that in the next few years, the economic performance will weaken somewhat, leading to very little price growth in the residential market of real estate of England. Still, price growth is seen as a more likely scenario than the decline. The demand for residential property will be supported by low interest rates on mortgage lending and the General lack of housing for sale will continue to create shortages in the market.

Most of the large construction companies are ready to expand their capacity but the uncertain economic Outlook will put pressure on them, not allowing to expand.

Regarding 2016, Gardner believes that the year will close with an average growth of housing prices by 4%-6%, which, in principle, within expectations.

2016 was marked by a series of political and economic changes that have profoundly influenced the market. First – the introduction in April of the increased rates of Stamp duty, which triggered a record demand for housing in January – March, in order to avoid paying extra taxes. Then the expected lull, a kind of rollback.

Next – a referendum on Brexit, which provoked a spontaneous mood swings and unpredictable market movement.

The pace stroitelstvu the 4th quarter increased by 33% compared to 4 quarter of 2010, was put 142000 housing units, however, this still does not match the population growth.

Thus, the coming years in the market of real estate in the UK will be marked by a progressive shortage of residential properties.

® Alice Morgan. 20.12.2016 G.

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