Acquiring real estate in London: the types & numbers

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london-estateIn the UK, a Victorian house is any house built during the time of Queen Victoria’s reign in any style of Victorian architecture. All these houses, standing out with slate roofs and protruding windows, Victorian houses make up about 70% of residential real estate in London. Municipal homes represent a form of public housing in the UK. Municipal residential houses were built and managed by local authorities to provide housing for the local population. In 2005, approximately 20% of such housing is owned by local authorities and housing associations. Construction of municipal residential buildings has decreased dramatically with the arrival of the Conservatives who spoke in support of homeownership. Importantly, council houses built in the 20-40-ies of XX century are quite suitable for comfortable living, especially if you are considering economy class options, while the houses of a later period are oftentimes smaller and less convenient. Municipal houses account for 20% of London’s residential property.

Laws forbade local governments to invest in the construction, which doesn’t allow it to subsidise it out of tax revenues. Moreover, persons who rent housing in the municipality, receive a right to buy their council house at very favorable terms. Buying the Right has allowed tenants to buy their homes in the property at a discount of up to 60% of the market price of houses and 70% of apartments depending on the lived life. Municipal authorities could no longer invest in the resulting profits from sales in the construction of new homes, and the total number of houses, especially those that are in demand, decreased. Today, municipal homes are very unpopular among the population, and the term ‘municipality’ is used with a pejorative connotation, although initially most people thought that living in such homes is quite acceptable option. Now more and more people living in municipal buildings receiving the support of social security funds.

Nearly 5% of London property is comprised of houses built in Regency era (most often it is the luxury expensive mansions, palaces and manor houses, built in the XVII-XVIII centuries), and modern buildings, also called ‘new developments’ in style and appearance design reminiscent of New York’s skyscrapers. The latter do not enjoy the wildly popular among the indigenous British, but they willingly inhabit, businessmen and investors, making London their second home.

Residential real estate market makes a huge contribution in Great Britain’s prosperity, it’s one of the most important factors determining the development of the British economy. It contributes to the growth of other industries, including legal industry, servicing a multiplicity of aspects, e.g. conveyance solicitors make the deals happen, banking lawyers deal with mortgage and loans issuance and etc. There’s a point of view that the growth may be associated with the emergence of bubble because of flowing international capital. Well, in fact it’s just a single aspect of the system that is considered by many aspects along with the deficit of real estate.

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