Categorized | International

United Kingdom Housing Market Outlook Looks Dim

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For the sixth straight month, prices in the United Kingdom’s residential real estate market have fallen. As London’s housing market also experiences a rapid decline, prices may decrease even further in the next few months.

Prices have fallen nearly three percent in the past year. With lenders unrealistically tightening lending standards, and unemployment rising in the region, there is no question that prices will continue to drop. The overall outlook on the economy in the United Kingdom is fairly dim, which does not bode well for the well being of the real estate market.

Fewer buyers are showing interest in buying homes in the United Kingdom, clearly indicating that there has been a serious decline in consumer confidence. Prices in London had been rising at record rates earlier in the year. However, in the last two months, prices have stagnated, causing great concern among analysts. As the capital struggles with housing, so too will the rest of the nation.

While the overall outlook appears bleak, some analysts are pointing to conflicting reports regarding the overall economic growth in the United Kingdom, calling them a reason to believe that there still may be hope for the residential real estate market. However, all reports do indicate that unemployment will likely rise in the next five years in multiple regions of the United Kingdom.

Rising unemployment will certainly take its toll on the residential property market in the United Kingdom. Job uncertainty has been a major factor in the massive decline of property markets in other nations around the world, such as the United States, and it will likely have the same effect in the United Kingdom.

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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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