Apart from the economy itself, government policies can significantly affect the property market, according to an article by Investopedia about the factors that drive real estate values. This is because major changes in policies related to tax can significantly swing the decision of homebuyers.

1. Mortgage Approvals
Rise Despite Property
Market Uncertainty,
Report Says
Simply Chaise

2. Apart from the economy itself, government policies can significantly affect the property market,
according to an article by Investopedia about the factors that drive real estate values. This is because
major changes in policies related to tax can significantly swing the decision of homebuyers.
The recent political uncertainty in the United Kingdom may have caused home values to fall for the
first time since 2010, according to a recent report by The Guardian. It may be good news for
homebuyers in the UK, who broke mortgage records just last July.
A Sharp Rise in Lending
July 2019 saw the highest number of approved mortgages in the UK since 2017, says a report by the
Financial Times. Over 43,000 mortgages were given the go-signal, which is 10.6% more than its value
in July of last year. Remortgages are also seeing a substantial increase, FT stated, with a 15% annual
rise as of 2019.
So why are people borrowing more despite the political situation in the area?

3. According to a mortgage broker that the news outlet interviewed, people were worried that recent
events involving Brexit would cause lenders to increase rates drastically. As such, residents pulled
the trigger on getting their loan. The economic adviser they interviewed also stated that people
wanted to get on with buying their homes, as they’re uncertain about what will happen after the
Brexit deadline of October 31. Apart from real estate services and banks, furniture businesses and
contractors may see a rise in earnings as more people buy new homes.
Slow Price Growth
The future of UK properties is still uncertain despite the possible growth of homebuyers in 2019.
According to consulting firm PricewaterhouseCoopers (PwC), house prices are going to continue to
stagnate ‘til the end of 2019. The firm also projects that the price-to-earnings ratio of the country
will remain stable.
Despite the recent rise in mortgages and the stagnating property prices, PwC stated that housing is
still unaffordable for most people. As such, it suggests making rental values more affordable by
increasing the supply of homes available to the public.

4. Sources:
https://www.simplychaise.co.uk/product-category/sofas
https://www.investopedia.com/articles/mortages-real-estate/11/factors-affecting-real-estate-
market.asp
https://www.theguardian.com/business/2019/sep/16/brexit-uncertainty-triggers-first-september-
fall-in-house-prices-since-2010
https://www.ft.com/content/a2a3db06-c8b0-11e9-a1f4-3669401ba76f