| UK Govt. Offers £1 Billion for Housing Market |
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| Tuesday, 08 April 2008 | |
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The UK government announced initiatives to infuse growth in the UK housing market by modernizing areas and giving development chances to existing dwellers.
The UK government announced on February 28, 2008 the local allocation of above £1 Billion (US$1.99 Billion) to revive the household market in important areas and re-establish the stable communities, as reported by 24Dash. As per the housing market renewal programme of the UK government, almost £54 Million would be offered annually in the twelve areas across the UK from 2008 to 2011. Few of them including, Merseyside, East Lancashire, Manchester Salford, South Yorkshire and North Staffordshire, are also likely to accept above £100 Million during the same time period. The Housing Market Renewal Programme is considered necessary to regain the trust in the disadvantaged areas of the UK. The program is planned to raise funds for stable communities’ restoration and re-establishing lost connections of housing markets with the regions. The investment will play dual role by converting the ignored inner city areas into modern areas for wealthy professionals by promoting housing market and by providing the development chances for the existing dwellers. Furthermore, the funding will lead to boost the morale of the housing property dealers in the country. The UK housing industry is stressed due to slowdown in prices for past many months. In February 2008, UK house prices continued to dip for the fourth consecutive month since November 2007. The average prices of houses fell by 0.5% in February 2008 against January 2008, pushing the annual growth rate down to its lowest level at 2.7% since November 2005. The chief reasons for plummeting housing market in the UK include the increasing energy bills and food costs, which are exerting increased pressure on housing finances. Moreover, financers are growing more particular about the profile of loan takers owing to crisis in the banking industry. The 125% mortgages have become talk of history and 100% mortgage market has reduced in recent months. A Senior Research Analyst at RNCOS commented, “The UK housing market is combating with reduced prices and declining consumers’ interest. Yet, the government funding collectively with growing investment from private sector and local authorities and support from others will facilitate the housing market renewal areas to progress towards their ambitious program to bring real transformation in areas which are seeing decline and rejection.”
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