Economic Trends · UK Economy

More people buying Cars,Houses

Rise in House and Car Sales in UK

The recent surge in the house prices rise in UK is an indicator. But what does it indicate? Well let us look closely. There is shortage of new houses in UK, and this has led to the price rise in the housing sector. The prices are up 1.7 % while all experts had indicated a price rise of only 0.3 %. In fact the price rise is a big 9.7 % over last year January. That is almost 10 % increase. The major factors contributing to this price rise is the recent upsurge in UK economy. More and more people are getting permanent employment and can afford mortgages. This means more demand for houses, the main reason for price rise in the housing sector.

Another major development has been the sale of cars. UK vehicle registration in January has risen by 3 %. the total sales have touched 170,000 units best since january 2005. Lower interest rates, cheap credit and rising confidence of the consumer are the main causes of this rise in sale. So what do these two indicators tell us about the UK economy. Well it is complex. Cars selling more can mean two things. Either it is just an upsurge because of New Year or it could be due to more purchasing power in the consumer’s side. But 3 % rise means that it is probably the second reason, and it is good for auto manufacturers who are finally getting the benefits of the good economic condition of UK.

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