(May 9 2014) The end of the first quarter and the begging of the second quarter of 2014 in the United Kingdom are all about its budget, which has mixed reaction from economic analysts. The George Osborne budget was delivered in March 19, 2014. Since then it is now gathering storm in the UK financial news walls and report winners, losers and those who benefited at neutral position. Generally, the budget aligned to save but economic analysts indicate that it did forget an aspect of housing, which is touching UK citizens who are yet to acquire property.
Property is souring in the UK. What is happening in the property industry of the UK
market is sending danger warnings to those who are yet to buy property. The 2014 UK budgets is received with good news by special groups in the economy such as the retirees and small business owners and failed to provide at least an incentive in the booming housing sector. The housing crisis in the UK might have developed slightly before the budget was prepared as it of now. Property analysts conclude that it is kind of disastrous if nothing is going to happen any time soon.
The UK property market has been so intense because of its unexpected price rise, which is reported to almost double in some incidents until it has found its way to parliament. Some critics have labeled this rise a Labour government project. Critics indicate that although property is always valued high and is always appreciating, at least the price would not have gone up such sharply in a short time. The property trend in the UK as it is of now is a project of few individuals and probably celebrities because even normal property firms cannot take a risk of buying property now but they will even be tempted to sell what they have.
With such a trend, the property industry will bring in a new generation of events in the UK because not only a boom in price is possible but a downfall in price is also possible if regulations come in from Authority. This will create a risk for the current buyers who plan to sell the property later.
As if the increasing property price is not a concern in the UK, another group of business people see this as a golden opportunity and applaud the hiking process. This group is that with rental properties because they are going to increase rent to tenants right away. With lack of options, tenants will be forced to dig deeper into their pockets and pay the new rent. This is the reason why the UK authority might be forced to come in with property price regulation to protect its citizens who have enjoyed a long term economic stability than any other country in the world. On the contrary, the group supporting property hike adds that regulations will lead to poor housing and poor accommodation. According to their argument, it is better to leave the property industry alone so that tenants can provide the best services at the present value.
In an element of trying to evaluate the safest country in terms of inflation or economic turmoil control, the UK was about to score high because it is the only country out of the top ten wealthiest nations in the world that has not faced an economic turmoil since the 2009 global economic crisis. However, with the new development in the property market, the UK will fail this test.
