British house prices jump to the highest level in 4 years

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A survey reported that the market rise Housing The British government intensified in August, with prices hitting a four-year high as buyers seek garden properties, and the survey sent a warning signal that the recovery could lose momentum.

The monthly index rose For prices Homes for the Royal Institute of Chartered Surveyors to +44 in August, from +13 in July, the highest level since February 2016. A Reuters poll of economists’ opinions had forecast a reading of +25.

Prices have increased throughout the country except for London, It has remained fairly stable over the past two months.

The survey is in line with other indications that there is a limited boom underway in the housing market, which is one of the few parts of the economy that has rebounded as a result of the pandemic, receiving support in part from an emergency tax cut on buyers.

The Royal Institute said that demand has accelerated strongly, with the support of a shift towards real estate with gardens after general isolation measures aimed at combating Covid-19. But there were some pessimistic indications.

The survey’s measure of sales in the next 12 months deteriorated further in August, as it was negatively affected by worries about the economy.

Last week, Andrew Bailey, governor of the Bank of England, said it was too early to say whether the housing market recovery was more than a release of pent-up demand following lockdown measures, backed by a temporary home tax cut.

This rise comes despite the UK entering into its biggest recession ever, and it also comes on the heels of the suspension of the real estate market during the shutdown of the British economy. Experts say the suspension of real estate tax fees in July helped encourage more people to buy. The value of real estate sales in July reached 25 billion pounds.

Dominic Murphy, general manager of real estate agents at DM & Co in Solihull, said last month that he believes the market will remain buoyant until the impact of job losses begins to emerge and hit the market in full force.

The country’s lockdown triggered the employment crisis, and separate figures were released on August 11, showing the largest decline in employment in more than a decade during the April-June period.

Data covering the month of July also showed a decrease in the number of payroll workers by 730,000 since the lockdown began.

The Office for National Statistics (ONS) stated that the forced cessation of activity through the closure due to the Corona virus, means a decrease of 20.4% in GDP in the second quarter of 2020.

(Reuters, The New Arab)





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