The state of the real estate market in UK Essay - 1

The state of the real estate market in UK - Essay Example From the research it is clear that real estate encompasses land and its additional features that increase its value. In United Kingdom (UK), the term real estate is dissimilar with different names. UK uses the word real property to denote real estate, which describes the land and its fixtures such as buildings and resources like minerals, water and harvests. While real estate market is the periodic change in upsurge of output alternating with the decline within a given time. In 1980s to 1990s, house prices appreciated by 300% while those of raw land raised by 1000% leading to recession. As from 1970, the average total price of the house for the first time buyers has increased for approximately 3, 100% at the same time, income average of the purchasers increasing by 1,900%. London records the lowest price of real estate to the initial buyer followed by South West. The alterations that happened in UK from 1980 to 2010 indicates how the country perceived an extraordinary increase in hou sing demand leading to increase in house prices. In 2010, house prices had raised threefold in 15 different cities and twice in 62 cities as compared to the house prices in 2005. The cities, which recorded the highest rise in the house prices, were Southern England, Salford and Newcastle while Scottish was among the countries, which recorded the least increases in prices of the house. Compared to other markets, the real estate market follows the fiscal principle of â€Å"supply and demand†. ... In 2010, the UK average number of real estate on the surveyor’s book raised by 4.1% from June raising the total average to 69.1, which was a drop of 0.1%. This led to the stock ratio sales dropping to 24%, which recorded the lowest level ever since June 2009. 1% more surveyors in the real estate recorded a rise surpassing a fall in total transactions which was a drop of 3% in the June 2009 transaction (Dijkman 2010, p.53). The total real estate supply raised and agents’ recorded a total average of 68% properties in contrary to the 59 of June 2009. The first time buyer (FTBs) percentages of total sales improved from 21% witnessed in June 2009 to 26% making the threshold of Stamp Duty Land Tax to rise to 250, 000 pounds (Jin, Yui & Zhixiong 2010, p. 527). In July 2010, both demand and supply for the real estates increased which was good news for housing market. According to the brokers in real estate, the total number of houses plus apartments in London traded for over 5 million pounds increased from 31% to 262%. On contrary, source of houses plus apartments for the sale above 5 million dollars significantly decreased leading to the raise of demand as inventory dropped. According to international luxury market, the prices of real estates in London were rising due to scarcity of property (Mun 2012, p. 676). This led to the real estate sellers in UK to accept the new trends in realities involved in luxury housing thus accepting on residence not commanding the real estate prices (Jinjarak & Sheffrin 2011, p. 246). During that period, general market activities and hopefulness increased leading to the drop in inventory while an increase in demand, which steered to inadequacy in classy housing inventory. In that