The housing market in the UK is under a dowery of pressure because of the fact that the UK economy is under swelling and always increasing engagement rates on the mortgage. The major factors influencing atomic number 18 inflation, interest rates and the income of the people. Though there ar new(prenominal) factors that affect the housing market in the UK they are non as effective as the inflation and the interest rates. The interest rate has at peace(p) up in the cultivation a couple of(prenominal) years. According to the bank of England?s data an average householder is paying £135 extra towards their mortgage hire compared to last few years which is about 20% higher than devil years ago. The increasing interest rates have caused a major crash in the UK?s present economy. As per the present situation a middle class family would not be able to afford a mortgage payment if this continues. As a result of this many people skill have to lose their homes. This following essay will submit to explain the major factors that determine the housing market in the UK and illustrate the facts and figures of the recent housing market in the UK.
(Financial Times)The factors that are closely related to the crash of housing market in the UK are as follows:Inflation:Inflation is defined as a rise in the prices of goods and services, as happens when spending increases copulation to the supply of goods on the market. For example, the 2.2% inflation in the UK in Jan, 2008 delegacy that the prices on an average are 2.2 % higher than Jan, 2007. The present inflation in the UK economy is shown below. The consumer prices advocator inflation in January 2008 is 2.2% has gone up by 0.1% compared to December 2007 which was 2.1%. However retail prices index inflation...
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