LONDON, March 29th, 2012 - the British economy evolved/moved only of 0,3% in December 2011; a rigidity which penalizes several sectors of the country. That for example touched the field of the real estate market considerably, although a consequent fall of the prices is noted in March.
The real transactions are not those which fluctuate more in the United Kingdom, for lack of several economic factors. Moreover, one degradation of 3% is still to envisage until the end of 2012. That made indeed more than 17 years that unemployment rate in this country does not cease increasing or at least remains stable. Moreover, the purchasing power of the population is with lowest thus causing reserves on the level of the market of housing.
Nationwide, a mutualist banking institution of the United Kingdom noted a reduction of the cost of a housing in this country. It is with the order of 1% in March, which is considerable if one refers to two years of survey. Indeed, it was only in February 2010 that this kind of report was published representing a fall of 1,2%. Currently, the cost of a housing represents on average 163327 pounds, that is to say roughly 195 thousand euros.
The reasons of this fall would concern taxation rules applied in the country, in particular the arrival in the long term of a reduced taxation when his first dwelling is bought. Robert Gardner (economist chief of Nationwide) notes nevertheless a stagnation or right unimportant reductions in the future, because the temporary tax exemptions are not in force any more. These is indeed the last which allowed an improvement of the price of the real estate at the beginning of this year.
The government in the United Kingdom should then re-examine its tax regulations concerning the access to housing in order to help not only the population, but also the investors in this sector. It is obvious that other solutions vis-a-vis the weak purchasing power would be also the welcomes, in particular efforts for job creation for example. |
