Housing prices in the UK have reached a maximum over the past 5 years

Housing prices in the UK in September 2013 have reached the maximum over the past period since the end of 2007.

As showed a monthly review of the British real estate market, conducted by Nationalwide Building Society , the cost of residential buildings in the UK in September increased by an average of 0.9% compared to the previous month and 5% compared to the same period of 2012. Economists predicted that this indicator will rise by 0.5% in monthly calculus and 4.4% in annual.

Thus, the average cost of housing in the country amounted to 172 thousand pounds (about 276 thousand dollars). This is the highest level since July 2008.

In addition, for the first time since 2007, housing prices rose in all 13 regions of the UK. Despite the fact that prices are rising faster than salaries, housing affordability is supported by low credit rates. For those who make the first purchase of real estate, additional links are provided. So, the initial mortgage contribution for them is only 29% of the total cost of the house, reports Marketwatch .

The construction rate also begins to recover, although they remain below the level necessary to ensure demand.

"Demand is supported by the growth of housing construction and a decrease in bets
on mortgage loans, ”said Robert's senior economist Nationalwide
Gardner. - Improving economic prospects gives confidence
Consumers and allows many to enter the real estate market for the first time. "

Prices are growing largely thanks to state programs for
increasing the availability of mortgage loans, in particular, we are talking about
Funding for soft and medium -sized businesses
Lending Scheme (FLS), launched in August last year, notes Interfax .

A number of politicians, including the Minister of business, innovation and
British vocabulary, Vincer Keibla, expressed fear that such measures can lead to the formation of another "bubble" in the real estate market.

In response to these fears, the Bank of England said this week that
Activity in the housing market remains below the average historical level,
In addition, the Central Bank carefully monitors the situation and is ready immediately
react to risk occurrence.