UK HOUSING MARKET

UK Housing Market

UK Housing Market

Introduction

UK real estate market has developed for a long time and is therefore a very traditional, "transparent" and predictable, which makes it less risky. At the same time, this market is very diverse and, therefore, not knowing the exact objectives pursued by the buyer, it is difficult to recommend anything specific. Below I will list the main objectives, which usually has an English buyer of real estate, and the main types of real estate, the most suitable for this purpose.

In Britain, unlike in Russia, in most cases, the owner of the house / apartment and the tenant is a completely different people. Owning real estate is not a vital necessity, as a separate business. Most people in the UK most of their lives in a rented accommodation. This gives them a certain mobility and every time you change jobs, they move closer to their new office. Also, it saves them from having to look for a large sum for the purchase of homes at an early stage of their lives. If the British and acquire property, it is usually the time when they finish their careers, retirement and accumulated over time career money to buy a house in a quiet and prestigious area. There they spend the amount of decorum, and the other half of his life, enjoying the views, breathing fresh air, playing with his grandchildren and indulging in some classic British entertainment.

Boom and Recession of Economy in 2003-2009 and Yield Trends in Market

Since 2007, the investment industry has been devastated by the housing market's collapse. Many individuals struggled to maintain loan payments and many homes went into foreclosure (IBIS World, 2011a). As delinquencies rose and home values dropped; the ability of banks and other institutions to lend money drastically declined. As this decline happened, credit markets tightened and the economy fell into a recession.

The data selected involve time factor which includes dimensional changes in housing index level based on economic prospects. The Housing Price Index (HPI) aims at measuring the evolution of sales prices of houses. The house price index is an important indicator of residential real estate demand because prices rise when demand increase and fall when demand drop. At the same time, the house price index is also an important component of understanding the affordability of real estate (IBIS World, 2011b). If the index rises too high too fast, the ability for individuals to afford property purchases diminishes, while the demand for rental units increases (IBIS World, 2011a).

Industry value-added is expected to decline at an average annual rate of about 5.9% in the 10 years to 2016, while UK GDP is forecast to rise by an average annual rate of 2.0% over this same period (IBIS World, 2011a). The industry is forecast to remain in a mature cycle, despite the drop in revenue in the previous five year period (IBIS World, 2011c). Additionally, the growth in demand for new housing conforms to a fairly rigid cyclical pattern ...