Real sector experiences highest growth

According to the latest UK housing report, the increase currently being experienced in the real sector is due to the improving economic indices in the country.

According to Richard Donnell, director of research at residential analyst Hometrack, “Home buyers and investors shrugged off the run up to the general election and continued to bid up the cost of housing.”

Reports from the Hometrack UK Cities House Price Index, show that the average time between moves has gone up from 14 years to 28 years, despite the rise in housing turnover.

Donnell also explained that the ‘Record low mortgage rates, which are more than half the level of 2007, are boosting buying power, while low rates of housing turnover creates housing scarcity and is keeping an upward pressure on house prices.’

Adding that the sharp decline in the sale of houses, by current mortgage home owners, is the major factor driving housing scarcity.