UK housing market could be an inspiration for Dubai

The political climates of Dubai and the UK could scarcely be different yet inspiration can to be drawn from an analysis of how the UK housing market has changed since 1997.

The 13-year period is important because the current UK government, Labour, has been in office since 1997 and is tipped to lose power to the rival Conservatives at the May 6 general election. Yet the UK's housing market is radically different now to 13 years ago.

The UK house prices have risen about 175 per cent despite falls in 2007-2009. The owner-occupied sector has increased from 16 million in 1997 to 17.5 million now, and currently represents just under 70 per cent of all households.The number of homes rented from local authorities or housing associations has fallen from 5.5 million to 4.5 million.

The private rented sector has risen from 10 per cent of UK housing stock (2.1 million people), to 12 per cent (2.6 million) thanks chiefly to the expansion of the buy-to-let system allowing individuals to buy investment properties – the same phenomenon that encouraged widespread ownership of homes overseas, including those in Dubai;

The UK consumer prices have risen 37 per cent according to the Office of National Statistics;

And the inspiration? Well, despite the global recession the UK housing market is, over the long term, much stronger than 13 years ago. Most other countries have had similar successes – and so will Dubai.

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