House prices in the UK have recently shown a significant drop in the past 4 months.This was inevitable as the price of houses have been consistently increasing (5000%) since 1983.
Economists have predicted that price of houses will have an average drop of 15% at the very least up till August 2009. This graph just shows exactly that.
House buyers all over the UK have been buying less due to such high prices.
It is for this reason that the chancellor Alistair Darling axed off the stamp duty for 12 months.
This means that all houses on the market for less than £175,000, house buyers won't have to pay this added tax (between 1-4% of stamp duty depending on the price of the house).
It is for this reason that the chancellor Alistair Darling axed off the stamp duty for 12 months.
This means that all houses on the market for less than £175,000, house buyers won't have to pay this added tax (between 1-4% of stamp duty depending on the price of the house).
What caused this? First of all, the demand for houses has been constantly increasing every year due to groing population. Secondly, interest rates are too high which puts off customers from borrowing. This leads to a decrease in spending because don't have the money to do so. And finally, banks don't lend money as easily as before due to borrowers who do not have a reliable and regular source of finance.
As a consequence of the house prices slowly decreasing, the price of building companies drop. This has made a huge impact on this company as the value of their shares is lower than when the conmpany first started.This gaph shows exactly this.
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