Categorized | International

Decline in House Prices Expected in United Kingdom in 2012

Please Share!

Analysts predict that 2012 will be a difficult year for the residential real estate market in the United Kingdom due to such factors as unemployment. With the threat of a debt-crisis growing larger, many believe that the ensuing turmoil will cause unemployment to spike and consumer confidence to drop. As such, the housing market will take a modest hit in prices.

Rising unemployment and decreasing consumer confidence will likely affect much of the nation, though the prime markets in London will likely be spared the adverse effects. Aside from the prime market in London, housing prices across the United Kingdom fell in the past month by two tenths of a percentage point.

With limited growth expected in the United Kingdom’s economy for the coming year, housing values will experience further declines. While a major crash in prices is not expected, government officials are scrambling to control any possible damage.

Banks have already started to restrict lending across the United Kingdom, which has led to a decrease in property demand. With spending cuts, challenging market conditions, and the possibility of increased taxes on the horizon; many potential homebuyers have lost interest in the housing market for the time being.

While realtors focused on prime properties are expected to have a steady year in 2012, many homebuilders and realtors across the rest of the United Kingdom are expecting 2012 to be a struggle. Some reports are indicating that housing prices may remain flat throughout the next year, though most are predicting a two to five percent drop.

Please Share!

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.

Leave a Reply

Twitter Chat