How will you understand the UK’s housing market? Here are the important facts you need to read:
1. What are the dangers that lie ahead? The 30% increase in Stamp Duty took effect in April 2016. This applies to all Buy-to-Let purchases and an addition to an already-high existing Stamp Duty rates.
2. Housing Ups and Downs. The ups and downs of UK’s housing market are due to the increase in interest rates in 2007. The lending conditions also tightened and resulted in a global financial meltdown. The house prices fall accelerated and ranges from 14.1% in Scotland, 21.7% in East Anglia and 19.8% in London. The biggest drop occurred in Northern Ireland where houses fell by 39.2%.
3. Price Hikes in London. London experienced higher price hikes compared to other parts of UK during the Q4 2015. The average home in London is worth around 152% which is more than the average home located in other places in the UK.
4. Unchanged Key rates. The historic low key rate remains unchanged especially the Bank of England’s key rate. It has remained unchanged at 0.5% for the past seven years.
5. Potential Threats. The three significant structural challenges became a potential threat to UK’s housing market.