Categorized | International

Housing Prices in UK Drop Half a Percent in February

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Residential real estate prices across the United Kingdom dropped half a percentage point in the past month. The decline marked the third in four months, indicating that economic uncertainty is causing some hesitation on behalf of most buyers.

 

Prices are not only down month-over-month, but they are also down more than one and a half percent from one year earlier. Although the United Kingdom posted economic growth during the first quarter, there are still concerns about the effect that the European debt crisis will have on the nation. In addition, there are also worries about the possibility of rising unemployment in the region.

 

There is hope that the United Kingdom will avoid falling back into a housing recession, as the recent economic data has been encouraging. The residential real estate market, however, may continue to struggle for some months, as any bit of uncertainty could cause the market to dip slightly.

 

Currently, manufacturing, construction, and the services industry are all performing incredibly well, which has led to a boost in confidence. It is for that reason that there are a number of economists that are not at all concerned by the drop in February. In fact, they believe that the market will continue to hold steady, as interest rates remain low, and the housing inventory continues to be at low levels.

 

The interest rate in the United Kingdom will likely remain the same for some time, which is certainly good news for the housing industry and mortgage lenders. The low interest rate will likely play a significant role in keeping the performance of the housing market stable.

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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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