Leading indicators point to a strong real estate market in England after the election

Activity in the property market in the UK was strong across the Board in April 2015, more than a year ago , despite the upcoming parliamentary elections.

In the past month were committed by 13% more ratings of apartments and houses in the UK than in the same period a year earlier, despite the fact that in the month of March observed the failure by 32%. These are the findings of the studies presented by real estate company Connells.

All market indicators show strong momentum generated in the real estate market of UK and it is expected that the market will be very strong after the formation of the new Parliament. Nevertheless, the results of the elections to the Parliament will affect the mood of both buyers and sellers in the market.

Against the background of historically low interest rates, the mortgage market is on the cusp. Most likely, rates will remain low for some time, and inflation will be zero. However, by the end of the year, according to Connells, the Bank of England be forced to raise rates. Despite this, many homeowners in the UK will take advantage of a favorable period of low interest rates and will be able to refinance on more favourable terms with a fixed rate of payments on the loan.

The market “Buy to let” ( investment with the purpose of renting) also experienced strong growth of 29% compared to April 2014.

This is despite the fact that the rental market was pessimistic mood caused by the labour-initiated programs “control landlords” and “minimum 3-year lease period”. Many potential homeowners have chosen the tactic of waiting before the election to see what changes are expected in the market. Despite this, long-term picture of the rental market in England and Scotland is extremely positive.

Over the past year, homeowners have benefited from the boom in the labour market. Many people have moved to the suburbs, thereby increasing demand for the rental market. In turn, the increased income of tenants allowed them to pay a higher rent, which, respectively, contributed to the growth of income of landlords.

For those of you who already have your home, the time is not propitious. In connection with rising real estate prices, the possibility of moving to worsened compared with the period a decade ago and , most likely, hardly will be better in ten years.

® Alice Morgan G. 12.05.2015

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