Categorized | International

Housing Prices in United Kingdom Drop Once Again

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Average residential real estate prices in the United Kingdom dropped once again in the month of November. Prices fell roughly 0.2 percent from a month earlier, indicating that consumer confidence in the region is growing worse. As consumers fear an uncertain economy, and the growing chance of a European debt crisis, demand for housing has dipped, as have prices in general.

Demand is expected to continue its descent for at least the rest of the year, and the rate of decline may be even greater than it has been all year. As such, prices may drop at a faster price than ever before seen. While more houses continue to go up for sale in the United Kingdom, there are far less buyers showing an interest in buying a home.

Thus far, the weakened residential real estate market in the United Kingdom has flown under the radar globally due to London’s ability to avoid the drastic declines. The prime market in London has performed fairly well this year. However, analysts warn that if prices do start to drop in London, the world will soon take notice.

Analysts do believe that pricing and demand will drop in London in the coming months, as international investors instead of domestic buyers have bolstered its performance in the most recent months. While international investors have been able to keep the market afloat recently, the lack of domestic homebuyers will likely cause London’s residential real estate market to drop in the near future.

The government has indicated that it may call for a stimulus to the economy in the next year to spur more interest in housing. However, analysts are not sure that any kind of stimulus will have a positive impact.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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