According to the Nationwide Building Society, prices of houses in England reached a seven-year high, surpassing the record of 2007. In April, a typical house in the UK was worth £186.5 thousand (€229.6 thousand), reports ee24.com citing bloomberg.com.
Property in the UK is going up in value in a fast pace. According to Knight Frank, in Q1 2014 the UK was the fourth market in Europe with an annual price increase of 9.1%. Robert Gardner, chief economist at Nationwide Building Society, is inclined to believe that due to the current extremely low interest rates on mortgages and the improving the situation on the labor market the demand for homes in the UK will remain at a high level.
Mortgage lending situation is not so simple and it seems that tightening of lending rules is gonna happen. According to the Bank of England, in April, the number of loans has been minimal over the past nine months. After it reached a six-year high January, it has been falling for the third month in a row.