Recent Property Price Increases, London
The advance on the real estate in the Great Britain last years averages about 10-12 % a year. According to Nationwide Building Society the value index of the inhabited real estate of England in the spring 2007 showed ascending dynamics, and in annual expression the price index on the inhabited real estate has increased for 10,2 %.
Despite of delay of rates of growth of cost of the real estate by summer of 2007 in London and England as a whole which has been caused by desire of British to avoid charges according to new rules of advertising of the real estate, rates of a rise in prices have kept dynamics.
The reasons of steady positive dynamics of the prices for the real estate of the Great Britain and high investment appeal:
- the liberal tax laws;
- stability of the British economy;
- the simple and consecutive immigration legislation;
- a low level of bureaucracy;
- comfortable conditions for average business;
- high base demand from buyers and investors;
- availability of interest rates on the mortgage and an opportunity of its reception at all not being the citizen of the Great Britain;
- change of structure of the population and inflow of immigrants from all world, wishing to locate in London.
According to researches of organization NHM (National Housing Federation), published in August, 2007, the inhabited real estate in England the nearest five years should grow on 40 %. According to forecasts the average price of the house in England during the specified period will exceed a mark of 300 thousand pounds sterling in comparison with current market cost of 220 thousand pounds. Cost of houses in London according to forecasts NHM will above 470 thousand pounds sterling. For comparison – today average market cost of the house in capital makes about 320 thousand pounds. The factor of a rise in prices on the real estate of England since 1948 till today has made 11,7