Categorized | International

UK Housing Prices Finished 2011 Strong

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Despite the uncertain outlook for the residential real estate market in 2012, housing prices finished 2011 at an eight-month high in the United Kingdom. Housing prices increased after many homebuyers expedited their home purchase to make sure it was finalized before the end of the year.

Both the total number of sales, and average prices experienced an increase in England and Wales. In both countries, the average price hit two hundred and twenty thousand pounds. The increase in pricing and sales defied the expectations of analysts, as most believed that the growing instability of the UK economy would have had detrimental effects on the residential real estate market performance.

The prime market in London once again boosted the market performance. Only London and Wales had an overall increase in value over the last three months when compared to the previous year. Thanks in part to the success of those two regions, the United Kingdom’s housing market performed better than the overall economy as a whole throughout the past year. As such, many analysts now wonder if the same can be expected for 2012.

Most reports have predicted that 2012 will be a rough year for the residential real estate market in the United Kingdom, as economic uncertainty will grow even more apparent. However, the housing market has thus far separated itself from the rest of the economy in terms of performance.

One major factor that will likely impact the housing market’s performance in the next year is the tightening of lending standards. Banks have made it clear that lending terms will become more restrictive in the coming months, making it very difficult for homebuyers to secure mortgages. Although the uncertainty that exists within the UK economy has not yet had an adverse effect on the housing market, the toughening of lending standards will likely change that.

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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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