The prices of UK residential real estate in the III quarter were not only stabilized, but also decreased. Experts claim that the trend of price reduction will be observed in 2011.
Nationalwide is the largest construction company in the country, states that the cost of residential premises in September 2010 remained more stable than in September last year.
Halifax mortgage bank published statistics, which states that, compared to August, housing in the UK has become cheaper by 3.6%. The price in annual calculus decreased by 0.9%. This is the most significant monthly reduction in prices during statistics (since 1983). The Department for Registration of Transactions published data that the price of housing in September became 6.7% higher than last year, in the same month.
The scatter is to blame not only the differences in the calculation mechanisms, but also the unstable price dynamics. In the II quarter, British real estate took 11th place in the world in terms of rapid price growth. Now the growth rate has significantly reduced.
Real estate of the foggy continent remains one of the most expensive in the world. That is why people who can afford real estate abroad are increasingly preferring other countries: Italy, Spain, France. For example, among wealthy British there are many people who want to buy real estate in Calabria. Warm sea climate and many sun attract investors and buyers.
One of the factors leading to price stabilization is a political. In May 2010. In the UK, a conservative party came to power. The party policy includes reduction of the country’s budget by £ 81 billion. As Global Property Guide notes, this is the most significant reduction over the past ten years.
Also in the Party plans, the dismissal of about 500 thousand. state. employees in the next four years and raising the retirement age to 66 years by 2020. Analysts believe that such a policy will have a restraining effect on the dynamics of the price of the real estate market.