Is inflation the real threat to the UK property market?

Published by Property Community
on Wednesday, 19 January 2011 by Ray Clancy
 
Over the last few months there has been major concern regarding the flow of funding to the UK mortgage market that has impacted on property prices and the demand for UK property. However, yesterday’s news that the consumer price index has risen to 3.7% from 3.3% in the previous month is a major shot across the bows of the UK government and the Bank of England. Depending upon which inflationary figure you use, with the consumer price index seen by many to best reflect the underlying market movement, there is no doubt that the cost of living is moving higher in the UK. So how will this impact upon the UK property market?

There are a number of factors to consider with regards to the UK property market which include:

The cost of living

In simple terms, the higher the cost …


Tags: Bank of England, inflation, property, property market, rates, UK Government

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