Sellers of second homes will help relieve tension in the real estate market in the UK

Autumn 2013 has been very active in the market of residential property in the UK. The number of sales increased 16% in annual terms. According to the analysis provided by the estate Agency Haart, which has more than 100 branches across the country, the demand for residential property in the UK is now so high that over a short period because of lack of facilities, the number of sales fell by 2.4% in the month.

The situation is even worse in London, where the number of first-time buyers buying a house has decreased by 87.3% in the year.

Due to the fact that the demand for residential property in the UK far exceeds supply, property prices rose 1.5% after the summer, starting in September 2013.

According to forecasts, the number of transactions in the real estate market of the United Kingdom will increase from 10% to 15% over the next 12 months.

Huge popularity already acquired a government program to stimulate real estate market “help to buy”, thanks to which the purchaser of new residential property costing up to £600,000 pounds receives government loan of up to 20% of the cost of housing. Thus, the buyer has to pay only 5% of the property value as down payment. The program is unique in that it first extends not only to those who first buys a house, but for those who already owns property and is willing to improve their living conditions, the so-called “second buyer” . Indeed, the scheme “help to buy” has pleased buyers and second property.

Popularity of buying a new home with people who already have their first home through a construction company in order to improve their living conditions. This method of sale has many advantages, as the seller, who decided to change their property for one reason or another, not connected by a chain with an alternative buyer.

This method of exchange of real estate is much faster than the traditional purchasing of second homes, which takes on average 104 days.

In the case of a separate transaction of sale, the buyer will be able much more profitable to sell their first home on the market, as it does not depend on an alternative buyer, and can wait for a real buyer who will give the price that best reflects the actual value of the house.

All the described processes in the real estate market in the UK will certainly give a greater impetus to the construction industry and will encourage construction companies on the construction of new family houses. And of course, the construction industry, as the locomotive of the UK economy, will help improve the economic situation in the country as a whole.

® Maxim Savitsky 21.10.2013