Current Socio-Economic Trends

To further develop the argument for the importance of trends, the other reason why I believe in the longer-term investment potential of property in the UK is because of the following current trends:

Lower unemployment and higher employment levels
Low interest rates and low inflation – cheap borrowing
Euro-convergence leading to sustained lower future interest rates
UK has a relatively dynamic economy – with much immigration to keep the working population younger (when compared to countries like Germany and Italy)
SE England is a huge economy with much new investment in service sector and high-tech related – this should continue to stimulate employment as long as the country stays competitive
London has beaten Frankfurt as the number one financial centre in Europe and is now challenging New York for top global financial centre
British people strongly aspire to own their own property – this should continue
Property taxes are not too high – this should continue as the government would lose too many votes in “middle England” if they raised property taxes significantly
There are more and more single person households (or small numbers of people per home) – caused by an aging population, more divorce, more individualistic behaviours – e.g. young unmarried couples often keep two properties for security in case they split up
It seems people are becoming more selfish – wanting to maintain their own independence and financial security – property is one form of asset that supports this behaviour
Easier and more competitive financing available to the average person and high debit to earnings multiples accepted as the norm by banks
Economic attraction of purchase over rental
“Englishman home is his castle” – homes (often more than one) have become the most desired status symbol for all age groups
Shortage of land, both Greenfield and Brownfield
People like to live close to work, and city living has gained in popularity recently – more amenities, café culture, arts, networks, social aspects, lower or stable crime rates, diverse cosmopolitan environment.

<< Previous Page || Next Page >>