Categorized | International

Analysts Predict Slow Start for UK Property Markets

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The slow finish experienced by property markets in the United Kingdom to conclude 2011 is expected to continue into the start of 2012. With the economy struggling more than originally thought, it should come as no surprise that both the residential and commercial property markets are expected to face some struggles at the start of this New Year.

With that said, analysts believe that 2012 will be a year of two distinct faces within the property market. The first half of the year will likely be marked by falling property prices and sales. However, many expect a positive change to take place for the second half of 2012, with both prices and sales rebounding strongly.

One of the reasons why sales and prices are expected to suddenly improve during the second half of the year is that London Olympics will provide a significant boost to the overall economy in the UK. In addition, asset purchases by the biggest banks in the UK will likely create an economic stimulus of sorts.

The lack of consumer spending is expected to be one of the biggest determining factors when considering as to why the first six months will be a struggle for the UK real estate markets. With consumer spending likely to remain stagnant throughout the year, commercial real estate will be hit the hardest of all the sectors. As business look to control costs, they may opt to downsize their building space, causing a drop in both office space demand and overall sales performance in the sector.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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