Economy of the UK

Property Market

The UK Property market has been booming for the past seven years and in some areas property has trebled in value over that period. The increase in property prices has a number of causes — greater growth, a well managed economy, low interest rates, the growth in property investment and specifically buy-to-let.

The UK property market initially peaked in July 2004 and had been static or falling in the capital and some other areas until late 2005. This had led many to start worrying about the possibility of a house price crash, many predicting the end of a major British property bubble. However, the property market strengthened considerably in the first half of 2006, showing particular strength in the capital. This has led many analysts to revise previously negative assessments of the market, with most now predicting continued modest growth in prices in the mid-term.

A house price crash would be very damaging at the present time due to debt at record levels. Increasing numbers of bankruptcies and home repossessions are worrying many economists, who think that a correction in house prices would lead the country into a lengthy recession.

Economy of England

The Economy of England is the largest of the four economies of the United Kingdom.

England is one of the world’s most highly industrialised countries. Its products include a variety of fish and agriculture, and products ranging from sewing needles to earth- moving equipment. It is a leading shipbuilding country and an important producer of textiles and chemical products. Automobiles, locomotives, and aircraft are among England’s other important industrial products.

Since the 1980s the financial services sector has played an increasingly greater role in the English economy and the City of London is the, if not, amongst the world's largest financial centres, on a par with New York City and Tokyo. Banks, insurance companies, commodity and futures exchanges are heavily concentrated in the City.

The service sector of the economy as a whole is now the largest sector in England, with manufacturing and primary industries in decline. The only major secondary industry that is growing is the construction industry, fueled by economic growth provided mainly by the growing services, administrative and financial sector.

The British Pound Sterling is the official currency of England and the central bank of the United Kingdom, the Bank of England, is located in London.

In medieval times (c. 11th Century-15th Century) the wool trade was the major industry of England and the country exported wool to Europe. Many market towns and ports grew up on the industry. Poor infrastructure hampered the development of large scale industry. This changed when the canals and railways began to be built, in the late 18th Century and early 19th Century.

England became the world's first industrialised nation, with the industrial revolution taking place in the late 18th Century. This was also the age of British overseas expansion, where England relied upon colonies (such as America, Canada, or Australia) to bring in resources such as cotton and tobacco. English factories then processed the goods and sold them on in both the quickly growing domestic market or abroad. Cities grew and large industrial centres were established, especially in the Midlands and North England.

Heavy industries, such as coal mining, steel production and ship building, declined in England during the second half of the 20th Century and were replaced by service industries and hi-tech industries, such as the computer and pharmacutical industries.

Today England is one of Europe's wealthiest nations and is the wealthiest of the four nations that make up the UK (GDP per capita).

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