29.07.2014 - Statistics on the housing market in the UK exceeded the expectations
Data on the housing market in the UK pleased investors. Thus, the number of permits issued for mortgage lending in June rose to 67 thousands. The housing market is very important because it creates significant number of jobs and contributes to the growth of GDP as a whole. We recall that the Bank of England recently announced stricter control over providing mortgage loans in order to reduce the risk of a new mortgage crisis and provide home loans only to reliable borrowers.
At the same time it is worth noting that the state program to support the purchase of a first home has led to growth in the sector and continues to contribute positively to the economic situation in the country. Risk for of the British pound is a referendum on Scottish independence in September, before which the price of the currency may decline. Despite the fact that the growth potential of the British pound has dropped significantly and the currency looks quite expensive, we maintain midterm positive outlook for the pound with the objectives of 1.72 and 1.73.