House prices in the UK are rising again!
As of June 2021, in the past year, the average house price in the UK increased by 13.4%, the highest annual growth rate since 2004.
UK house prices increase in June 2021, Nationwide data
The average annual increase in UK house prices, Nationwide data
In the post-epidemic era, what is driving the continued rise of house prices in the UK? Is the future trend optimistic?
01
The economic cycle proves that UK house prices still have room to rise
First of all, looking at the trend of UK housing prices in the past 20 years, apart from the 2008 financial crisis, the UK housing market has been stable development, the house price is also steady and rising.
Among them, the highest point of UK house prices was in 2007, when the average price exceeded £250,000.
After the financial crisis, the British government invested 300 million pounds in the market, basically stabilizing the fluctuations caused by the financial crisis. Since then, the average price has remained stable at 200,000 pounds.
Affected by the epidemic last year, the British government once again funded the rescue. The total amount invested is approximately three times that of 2009.
After the government took action, the effect was remarkable. In the first half of this year, real estate prices continued to soar, ushering in the highest increase in 17 years.
From this, many experts predict that the future of UK housing prices will be good, and they will grow for at least three consecutive years.
02
The demand for housing in the UK will not change for now
In order to deal with the impact of the epidemic on the economy, the countermeasures of all countries in the world are to print money, and the United Kingdom is no exception.
Even if people want to increase savings, paper money cannot beat inflation. Only by exchanging cash for more value-preserving assets can some of the inflation be offset.
This is one of the reasons why the British people urgently need to buy a house.
In addition, the epidemic has caused people to re-examine the living environment and personal needs, resulting in the need to buy new houses.
In the case of double stimulus, the demand for real estate in the UK will not decline in the short term.
The current supply of houses in the UK cannot keep pace with the current demand status.
In short, the relationship between supply and demand will remain unchanged for the time being.
03
The low borrowing cost makes buyers really fragrant
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Due to the impact of the epidemic, in the next few years, major central banks will cooperate with the British government and continue to maintain low interest rates to support economic recovery.
Another practical advantage is that most of the asset value will not be affected by inflation.
In July last year, the British government launched the new stamp duty policy, which has promoted the prosperity of the housing market.
Buyers' confidence in the UK housing market, especially the purchasing power of the world's richest people in the UK, is a huge driving force for the growth of housing prices!
If you are interested in British real estate, you can also have one-on-one exchanges with the British real estate experts of Xingyunhai International. We will take you to lock exclusive high-quality housing and help you successfully realize overseas asset allocation!
Source: Knight Frank, Nationwide; some images are from the Internet, and the copyright is owned by the original author
Editor: KIKI
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