Categorized | International

Bleak Economic Outlook in UK Hurts Housing Market

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With all of the recent talk of the looming European debt crisis, it should come as no surprise that the housing market in the United Kingdom is finally starting to feel some negative effects. While the debt crisis has not nearly had the detrimental impact that some had expected, many analysts believe that housing prices will likely fall in the coming months.

Although sales and prices have not actually experienced a decrease, many believe that the housing market would have seen a far greater increase in the past few months had the economic outlook been brighter. They argue that the very modest increases that have taken place point to the likely possibility that the United Kingdom residential real estate market will soon experience heavy declines.

Not all analysts, however, are quite pessimistic. Others believe that the modest increases in the housing market, despite constant talks of the looming debt crisis, show that the residential property market will not be nearly as negatively affected as some may lead to believe. While some areas of the United Kingdom will certainly struggle over the next few months, there have been no solid indications that the market as a whole will undergo a massive slump.

Both groups of analysts believe that the market isn’t performing up to the highest standards, and that any kind of recovery to reach such standards may not come in the imminent future. The overall performance of the housing market, particularly under the influence of economic uncertainty, will likely vary from sector to sector with prime real estate continuing to perform better than others.

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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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