The Price is Right

What's fuelling the UK's buoyant house market?

Towcester, Saturday,

Why are houses so expensive in the UK? The average house price in England is now £271 000, €300 000, $360 000.

At one level, the explanation is simple maths The UK, and in particular England, has more people per square mile than other European countries. The population density in England is already almost double the level in Germany and quadruple that in France. But, on the other hand. it has far more space per person than Hong Kong and China.

Here are some population figures, people per square kilometer: 

• Australia: 8 

• Canada: 10 

• Russia: 22

• USA: 87

• France: 321

• China: 375

• UK: 704

According to some estimates, London is the second most expensive city in the world with a price per square meter for a property being approximately $30 000.

Money Inc adds that London is home to many of the major UK tourist attractions such as museums and art galleries, offers luxury shopping and also has loose regulations for purchases, making it convenient for both legitimate and illegitimate wealth to the stashed there in the form of property.

This is why, even though demand for properties in London is so high, there is a large number of houses and apartments that are empty for most of the year. The rich and famous and the rich and secretive like to have a base in the capital but do not use it as their full-time residence.

House prices in the UK reflect distance from London, even though most people don't actually commute there. The real answer homes in the UK are so expensive has more to do with the large amounts of speculative money "invested" in London.

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Pricing a chateau or a gaudy shed?  

Prestige Property offers a six-bedroom French chateau for sale in New Aquitaine enthusiastically describing it as an "Exceptional opportunity to acquire an exquisite 6 bedroom chateau, fully furnished and beautifully presented, with swimming pool and over 5 acres of glorious land." The price? €745k or just over £600k That's the price of a three-bedroom terraced house in London! Rightmove describes it as a wonderful opportunity for a family looking for their next home that's large enough to meet their needs. The property is in need for some updates to bring it in line with the contemporary standards that typically benefit period properties. 

Or if £600k is too expensive for you, a studio near Chelsea is available for just £395k. For this, you will get a home that measures just 22.6 square meters. The "unique property" in Stewart's Grove, has one bedroom. a bathroom and a reception, according to the listing. The seller adds that the home does not have a garden and needs refurbishing. At least, if you purchase the property, you also have a colorful exterior and a front door that opens directly onto the street.