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It is generally the most expensive purchase a person will make during their lifetime and therefore entails borrowing a large sum of money. The market for housing is intractably connected to the market of finance, where rates of interest play an important role.
Properties as well as being places to live are also seen as investments. Recently house prices have changed rapidly, performing better than equity markets. However, as recently as the beginning of the 1990s, the market witnessed falling prices with some house owners experiencing negative equity.
All these factors and others contribute to make the UK housing market a highly complex and unique entity...
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