- Emma Reynolds, Shadow Housing Minister
Britain's housing market has been one of the main reasons behind the nation's rapid growth, as home prices have been rising steadily over the last months. Such a tendency raised concerns about the stability of the U.K. growth, as sooner or later housing boom can lead to a bubble that can have a disastrous impact on the economy.
It was not a surprise that a report from the Nationwide Building Society showed the nation's house prices advanced 0.6% between January and February, slowing from a 0.8% growth a month earlier, however, beating markets' expectations for a 0.5% gain. On a yearly basis prices soared 9.4%. A combination of record-low mortgage rates and increased consumer confidence have contributed to a upward property price movement since the second half of 2013.
While some may claim housing market is one of the key drivers of economic growth, a report from the Department for Communities and Local Government showed the level of home ownership in the country stands now at a record low of just 65.2%, from 71% in 2003. While 14.3 million households own their houses across the country, more than 4 million are private renters, while 3.7 million are social renters. This data confirms earlier fears that amid constantly rising prices a dream of a stable home is drifting further out of reach.
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