Despite higher prices, more buyers can afford to purchase available property in the UK

Deposit for mortgage lending to first-time buyers afford a house in the UK increased by 15% per year and reached £30000. Real estate Agency “Your Move and Reeds” conducted a study of the real estate market in the UK and presented an analysis according to which the reason for the increase in Deposit first of all , paradoxically , the reduction in Stamp duty for buyers in England and Wales , which took place at the end of 2014. In the result of a number of objective factors including the reduction of Stamp duty has seen the largest price increase for affordable housing and the average first-time buyers buying a house is now paying 12% more – £160304 than a year ago – £143343.

Reform of Stamp duty when buying property in England and Wales helped to reduce the initial costs buyers when the savings in stamp duty brought in on average £900 pounds each buyer. Before the reform the average buyer was paying £1600 pounds, now Stamp duty for such buyers was only £700 pounds.

Over the past year significantly increased earnings and, accordingly, the ability of people to save money for a Deposit. Support for the family budget is also a complete absence of inflation, and in relation to some products and items – deflationary processes caused by low energy prices. The only sector where there is inflation – the real estate market, where the price increase was felt particularly strongly in the first half of 2014. Price inflation for houses and apartments has led to the fact that the size of the Deposit required, the buyer, first-time buyers afford housing is 75.4% of its annual earnings, while a year ago it was 70.6 per cent.

The real estate market of London, a somewhat different picture. New buyers in London on average pay almost twice more than in the rest of the UK – about £308067 , the amount of the Deposit to be paid by such buyer flats in London has reached £73711. This is almost 10 times more than the Deposit home buyers in Wales.

At the end of 2014 we witnessed a significant decline in property prices in London in the upper price segment. However, it did not affect buyers of affordable housing. Having a great historical, cultural, industrial, financial potential, London continues to attract specialists from other regions of the UK , as well as foreign investors , thereby stimulating demand for property and contributing to the further growth of prices for flats and houses in London.

® Alice Morgan G. 02.03.2015

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