UK house prices are rising, and faster than the United States and other continental European countries.
In the first 4 months, the UK house prices rise continuously, and has hit 14 month increase since monthly. Insiders believe that the continuous price index suggests that the British housing market recovery may have hit the bottom, here is the bottom of the bumps ahead. But let the market was optimistic that this rebound will be sustained, but also to obtain mortgage financing major improvements Caixing. Now in the UK, mortgage lenders have started to market additional funds for the purchase of new homes.
Unlike the U.S., UK housing supply has not increased significantly with the price, indicating the sensitivity of housing supply, the lower price. This imbalance between supply and demand exacerbated the other hand, further pushing up housing prices rise. UK house prices and private consumption, the correlation is very high, the real estate wealth, the marginal consumption rate at a high level. In addition, higher home ownership rates and housing wealth, household wealth in the UK higher proportion, so the volatility of the real estate market is closely related with the UK economy.
UK housing market supply and demand better than the United States. Because the real estate market over supply, leading to weakness in the U.S. real estate market situation, while the British continued to outpace the number of new family housing starts number, which means that excess supply in the UK property market is not obvious. Relative to the U.S., the UK s housing investment and the number of housing starts is also a longer period to maintain a more stable level. Currently in the UK that reflect the purchasing power of residents of indicators of real estate turnaround, indicating that the conditions for real estate demand has been part of have a rebound.
Recovery compared with previous history of the real estate market situation, it seems more akin to 80s of last century. This means that the UK would be more robust recovery in real estate. However, due to the depth of the economic crisis and the June 22 budget has just launched the economy, the future of the property market is still too much uncertainty.
Conservative Party, the British announced the new Finance Minister Osborne, including substantial cuts in public spending and taxes in the emergency budget. Among them, the rate of reduction of public expenditure is the biggest since World War II. Although Osborne that the reduction in public expenditure is essential for reducing the budget deficit, but it may also lead to a relapse into recession the UK. In the new fiscal budget, Osborne announced that the UK public sector salary £ 21,000 or more employees a wage freeze for two years, three year freeze on child allowances, also announced that housing subsidies to cap and reduce more than £ 40,000 in Shouru people s taxes concessions. From the emergency budget point of view, from January 2011 onwards, those sales of 20 billion pounds of British banks and foreign banks operating in the UK will be charged the special tax. From next year on January 4, the sales of value added tax from the current 17.5 to 20 , this would give the British Government to increase the 13 billion pounds per year of income. Osborne said that in view of the United Kingdom is a serious situation of public finances, improve value added tax inevitable.
From June 23 midnight, capital gains tax from 18 to 28 . But the local tax will be frozen for two years. Personal income tax threshold from April next year will increase from 1,000 pounds to 7475 pounds, a move expected to make about 800 million people benefit. Osborne repeatedly that, without reform of the British welfare system, will not be able to reduce the current government faces a huge budget deficit. However, Osborne s emergency budget has been fierce attack from the opposition Labor Party. Labour said the new budget will seek the Government s commitment to justice, but the actual effect of the opposite. Harman is currently the implementation of the Labor Party leader, said Osborne s budget is not starting from an economic, but based solely on political considerations.
View from the budget, foreign banks will be charged the special tax, capital gains tax increase, housing allowance cap, value added tax increase in sales and so on, more or less the UK property investment will produce such effects as.
A few months ago, the British real estate big Hengxi Meng • Halabi (Simon Halabi) was forced to announce a formal bankruptcy, has become another one in the global financial turmoil fallen billionaire. In 2007, Harrah s assets have reached more than 30 billion pounds, while the involvement of many companies including JP Morgan Chase oligarchs, British Society for the Guardian Insurance Company (Old Mutual) and the United Kingdom Aviva Group (Aviva) and so on. Last year in June, the Sahara business empire began to reveal more than signs of the crisis. At that time,bodies on their name in London s Touzixiangmu of Zi Chan again Pinggujieguo Wei 929 million pounds, while Zai in 2006, this Bufenzichan value of Gujiagaoda 1.8 billion pounds.
The British real estate broker Knight Frank (Knight Frank) survey said that some buyers from Asia will be keen to invest in London Yishou Fang wealth market, pushed the London area this new home heating transactions.
Indeed, the current number of Chinese students took to the UK to buy a house renting alternative way of life. Most of these students from Beijing, Shanghai, Shenzhen and Guangzhou and other Chinese first tier cities. Most of them purchase value in 10 to 15 million pounds property. From the Yangtze River Delta and Pearl River Delta as well as a number of powerful businessmen in North China, because the children in the United Kingdom to study, so the way buy a house investment in their children can stay during the study, students will be paying after the end of hosting companies continue to make rental housing. For those investors to settle in the main crowd, the large scale investment in real estate, and registered his own real estate agency in operation, in order to obtain immigration status for the final.
Although the British local residents believe that the long term holders of real estate is a good investment, but to make money by buy a house, this concept, in the British society is still not universally recognized. The foreign investors would use economic crisis buy the dips the property market, the future still a lot of variables to face.
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