000 books concerned yet future wealthy owners

The residential real estate in Britain defied pessimistic expectations of most analysts. Indeed, this is seven consecutive months that Halifax and Nationwide, among the most reliable, indicators show a rise in the price. The average price of homes is about 15 lower than at the peak of the bubble, but, from the low point reached at the beginning of the year, it has bondi 8, and this then that Britain is still officially in a recession and that the balloon had been particularly strong in this country, including sustained not the growth of the financial sector. The phenomenon is not limited in London. The Royal Institute of Chartered Surveyors shows prices in increase in 9 regions out of 10 in the United Kingdom, pointe Karen Ward of HSBC in a recent study.

It is still in the capital, thanks to foreigners who profit from the decline in the book, that the phenomenon is more marked. According to the Knight Frank broker, the value of London housing from the top of the market (which cost more than 1 million books) is more than 13 of its most senior March 2008. During the month of December, prices are valued by 2.1 ( 6.1 over a year). Visibly tax of 50 on the money put aside by the banks of the City to pay the bonus more of 25.000 books concerned yet future wealthy owners.

According to Knight Frank, some bankers among lower-paid cancelled transactions after the decision of the Chancellor of the Exchequer on 9 December. But nothing for seven days, the broker found 22 transactions for a total of 60 million.

High standing houses prices continued to decline in March and is are appreciated 14 since then. According to Knight Frank and Savills, the prices for luxury homes should find their highest in 2012, either one or two years before the rest of the British market.

Weakness of transactions

Expectations of brokers, however, could prove too optimistic. "Given the weakness of the volumes of transactions, it is quite possible that current sales give a biased value of market prices and that we are not at the beginning of a sustained rebound," notes Peter Westaway, Chief Economist at Nomura and former Bank of England.

Many experts expect to an increase in the number of developed property for sale from next year, in particular because of an increase of the foreclosures. It is at this point that the real value of the property will be tested. Peter Westaway, who believes that it is fundamentally too high in the light of current economic aggregates, believe that the withdrawal of support to the economy of the Bank of England could trigger a correction.

Karen Ward, HSBC, note however that the recent figures for employment in Great Britain are relatively good and that interest rates will remain low. For her, property sales will be less related to end pushed household financially that owners choosing to sellers, "which is very different," she said. It is therefore expected instead to a stabilization of prices in 2010.