Observing property rates in Britain may feel like riding a roller coaster because of the constants ups and downs. Property prices grew by nearly three percent every year since 1975, while the early 1990s and 2008 experienced dipping periods. This year though, the rates dramatically dropped resulting in a recession that led to a catastrophic credit crisis. Throughout the ten-year period from 1997 to 2007, property rates grew and dropped marginally.
As you scour the web searching for conveyancing fees in the UK, you might wonder the causes for these small and at times very dramatic fluxes.
Property Supply and Demand
In the UK, thousands of property markets are available, and these all add to the total common house rate surveys. The impact of supply and demand has an intense impact on the market.
For instance, if homebuyers are all searching for a semi-detached Victorian house and the market only has one available, then the competition will raise the price of the property.
Affordability of Properties
In a booming economy where financial confidence is on the rise, house rates are, too. In case a first time home buyer cannot afford the deposit, a relative or lending agency would most lend them the money needed.
Affordability has a huge effect in letting property rates rise. The availability of low-cost cash means that property rates keep on rising when it would usually have dropped.
When an area’s property rates go up, the property market’s forecasts for those areas become more positive and creates a boom for investors and developers, which encourages more interest in the area.
Ultimately, the total number of sellers and buyers and the kind of property on sale will affect prices. All of this will then have an effect on consumers.