Categorized | International

Property Prices in the UK Remain Flat in 2011

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According to the most recent reports regarding residential real estate pricing in the United Kingdom, property prices in 2011 have remained relatively unchanged when compared to those from one year earlier.

While housing prices experienced modest increases earlier in the year, they have since fallen back to their original levels during the slower winter months. Many analysts believe that a similar trend will be seen in 2012, and that values will likely remained unchanged at the end of next year as well.

Although there was little change seen in property prices on the grand scale, there were various sectors in the United Kingdom that experienced strong growth. The prime markets in London experienced growing prices throughout 2011, and they are expected to see further price increases in 2012 as well.

The overall impact on pricing in 2012 largely depends on how the current credit situation affects the market as a whole. If mortgage loans become unattainable due to ridiculous lending restrictions, it is likely that the housing market will experience severe declines. However, if potential homebuyers and lenders adjust their expectations appropriately to the credit crunch, the overall impact will not be nearly as detrimental.

Currently, many analysts believe that housing prices will rise in 2012, though the increase will not be sufficient to remain inline with inflation. They anticipate fewer homes being sold in 2011 due to a decrease in the number of sellers. As such, the amount of revenue generated in the residential real estate market industry will be significantly reduced.

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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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