Population growth to support house prices.

November 2, 2015

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.

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

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