Thursday, 30 July 2009

House Prices

House prices may continue to rise and it may end in a high note for this year but it does not prove that more people are buying than before. What it really means is that there are lots more demand for the property but the supply of houses to be sold are less.

The main problem that consumers are facing in the UK is that banks are not lending enough money to house buyers particularly first time house buyers. I have little to sing praises to big building societies like Nationwide because they are not doing enough to help house buyers! Little do we, as consumers, know about what is going on with the banking institution. All we know is that the country's economy is still recovering. The question is: How fast is the growth?

While the government is trying to promote growth in the country, over 52 pubs are closing down each week for the first six months this year as compared to 2007 where there were only 1409 pubs which went out of business. The problem with closure of pubs could not be solely blamed on the economic growth. It has many factors which led to their closure. Factors have to be taking into account are: Rising cost of beer and wine, rising cost of overheads like electricity and part timers and rental and not forgetting the increased taxes on beers and wines that are being sold.

The increased of house prices does not mean that there are more house buyers but actually, it could mean that there are less house put up for sale!

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