There is no doubt that the UK housing market is booming. According to Rightmove, the average asking price for a property is up 2.4% since March. Buyer enquiries are up 75% and agreed sales are soaring over last year's figures. While there are many reasons for the recent surge, a few trends seem to be common among the most popular developments. One of the most prominent is the introduction of a stamp duty holiday.
While house prices were never naturally heading to a housing boom, the recent stamp duty break had a huge impact on the market. In the months between July and September, the stamp duty holiday boosted house purchases. This led to a shortage of available properties and a rise in prices. The shortage of supply could also be a contributing factor to the continued price increases. Other factors are also playing a role. Rising interest rates and inflation are adding pressure to the property market.
The recent stamp duty break and property freeze have added artificial pressure on the market. Buying a home will give you the luxury of owning your own home. In addition to the benefits of owning your own home, you will also have an investment that you can use to pay off your mortgage in a few years. While the value of residential property does not generate an income, it does provide a capital gain that you can use to finance your lifestyle.
Although the UK housing market is naturally booming, it is not going through a bubble. In fact, it has been stagnant since the Brexit referendum, and the housing market has not resorted to a real boom. There were only a few 1% house price rises in June and the trend continued to fall until the New Year. The latest forecasts indicate that the UK economy will grow by 7.2% in 2019, a much higher rate than the 5.1% growth predicted in December. And national incomes are expected to hit pre-pandemic levels by the end of this year.
As a result of the housing market boom, the UK Housing Market remains competitive. The base rate is at 0.5 percent, while the prime London segment is a little higher at 0.75 percent. While the overall housing market continues to boom, there is still a lack of affordability. In the long run, the UK's economy is unlikely to remain at the same level it is now. But there are signs that the government is taking steps to keep property prices down.
Another reason for the boom in house prices is the recent COVID lockdown. With the virus, many people have re-thought about where they want to live. Whether they choose to live in the city or a rural idyll, it is important to remember that home is a more important investment than just money. The coronavirus, which caused London's housing market to crash, is a rare occurrence. The disease has affected the country's economy significantly.
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