Categorized | International

UK Property Analysts Deliberate Forecast for 2012

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According to residential real estate analysts, the property market in the UK will look very similar in 2012 to that of the property market of 2011. Prices are expected to take a slight dip in the coming year, though sales volume is expected to remain at the current level.

The prime real estate market in London will likely see a four percent increase in average price during the coming year. Markets that are further south, however, will likely face a moderate decline in prices.

While the European debt crisis may play a small role in the United Kingdom, the expected decision of the Bank of England to keep mortgage rates level will certainly help the housing market maintain its current forecast. Those markets that are expected to face some declines and struggles will likely be offset by those expected to experience increases.

The rental market in the United Kingdom will remain strong throughout the year. It has performed extremely well in 2011, and should continue to improve in 2012. Demand continues to remain high in the rental market, and that will likely contribute to increased rent prices. The strongest growth in the rental market will be seen in areas outside of London. Rent prices in London have increased beyond what most can afford in the country, and as such, many are looking to adjacent cities and suburbs to find places to rent.

In what will be a major development in the rental market in the United Kingdom is that in 2012, the social rented sector will finally be surpassed in numbers by the private rented sector. That change is a good sign for the nation as a whole, as it indicates strong growth in all facets.

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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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