Population growth to support house prices.
Recent reports show that house prices continue to rise across the UK, as much as the experts continue to talk down the UK property market it seems demand is on the whole still increasing, the rate of growth in UK house prices is now at a six-month high.
Any talk of a housing bubble being created is soon dispelled, property experts assure us that low mortgage rates make today’s high house prices affordable. They point out that last year’s regulatory clampdown, the Mortgage Market Review, has forced lenders to tighten their criteria and “stress test” borrowers against future rate hikes. Strong demand and supply shortages justify today’s high prices, they say.
Moody’s the ratings agency has been reported as saying that the UK and Ireland’s expanding population combined with the housing supply shortage and “robust” economic growth will support demand and property prices and that according to figures from data company Eurostat, the UK is projected to experience population growth of 3.2 per cent until 2020, which it said will continue to boost housing markets in the context of a strong economic environment.
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