For the past few months, the prices of houses in Britain have been declining. It’s been almost ten years since it’s seen a decline like this one. Many people question the reasoning of this decline. Some people feel it may be due to political issues that are going on. Others feel the market may be declining due to more real life world fundamentals, such as wages not increasing as fast as the housing inflammation that’s happening.
Key Takeaways:
- In Britan housing prices have fallen for 3 months in a row, which is the first time since 2009 this has happened.
- The author theorizes that the drop in prices has something to do with the stamp tax that is now in effect if you buy a second home.
- This is a short term effect because the government wants people to own homes and they reason for the stamp tax is to encourage one home owners versus landlords buying second homes to rent.
“If a buyer believes that they can afford to pay £1,000 a month on a mortgage, then that’s pretty much what they’ll pay.”