In speed most economists have revised their growth prospects

The IMF determine prices of real estate in Britain "overvalued", this is the view of individuals or investors. The Victorian houses in the neighbourhood of Kensington, Central London, the cottages of Sandbanks, seaside resort of Dorset, or even the Scottish houses snapped. After the settlement of the second half of 2005, the market has been a summer mini-boom, despite surprise rate increase decided on 3 August by the Bank of England. In speed, most economists have revised their growth prospects. Nationwide, the first "building society", now anticipates an increase of the prices of 5 in 2006, when it was in December on 3, or even on of the strangest.

It is the past excesses. At the top, in 2002 and 2003, the price of apartments and houses was soaring at an annual rate exceeding 20 each quarter. Five successive rate increases decided by the Bank of England between November 2003 and August 2004 eventually limit this frenzy. But without causing the crash seen by Cassandra, as the firm Capital Economics, which, in 2003, expecting a fall of 20 of the real estate market.

Insufficient supply

Even if a new recovery is expected in November, bearing base to a level higher than rates during the last real estate peak, most experts do not believe that the market collapses. "The failure of the supply of housing is major support from the rise in the price," said Fionnuala Earley, an economist at Nationwide. Hence boom observed in London even, where individuals go into auction. Example, this two bedroom apartment in Bethnal Green in East London, which tells of a real estate agent, has attracted 42 visits to the two days leading to the 14 proposals, all above the posted price.

But if the offer should stay lean, the request, it could pack. Because the inflation of the cost of credit the famous "mortgages" are variable rate is in addition to other bad news for the wallets of British households: increase of gas and electricity bills, increased local taxes, rise of unemployment. More, it becomes increasingly difficult for young people to access the property when, in a decade, housing prices have tripled. Halifax and Nationwide assess the typical British House around 170,000 pounds (253.000 EUR). According to the website online Rightmove, the average value in the great London reaches it, 330,000 pounds (491.000 EUR)!

Fortunately, the lower rates in recent years allowed to help the candidates to the property, as shown in the statistics of the Council of Mortgage Lenders (CML), which includes banks and building societies": If a primo-entering average now must borrow 3.24 times his annual salary, a record since 1974, monthly interests absorb 16.7 of his income, a level course, but much lower than that of the end of the 1980s. And as rents continue to increase, in view of the insufficient number of updated rental housing, the attractiveness of the property remains high. "This will be of even more true in the coming years if an important migration flows from Bulgaria and Romania United Kingdom", said Jim Cunningham, Economist in CML.