Categorized | International

United Kingdom Property Prices Hit Lowest Level Since 2009

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Housing prices have hit their lowest levels in nearly three years, as residential real estate market uncertainty and a weakening economy have caused consumer confidence to substantially drop.

The average housing price in the United Kingdom fell to roughly one hundred and sixty thousand pounds, which is roughly equal to two hundred and forty-eight thousand dollars in the United States. That price is more than two percent less than it was last January.

Rising unemployment and the European debt crisis have played a major factor in the overall housing decline, as many potential homeowners have become hesitant to buy in the current economic state.

Lending restrictions have also been a contributing factor to the decline, as tension and uncertainty continues to increase in the funding markets of banks. As such, it has become increasingly more difficult for potential homebuyers to secure the mortgages that they need to go through with the purchase.

Record-low interests rates have done little to prevent the decline of the housing market in the United Kingdom. Banks have said that they will keep their interest rates at their low level, though that action will likely contribute very little to recovery. The rates have been at their record-low level for more than two years.

Analysts believe that avoiding a recession will play a major role in the stabilization of housing prices in the United Kingdom. If government officials are somehow able to avoid an economic meltdown in 2012, the housing market will likely remain at its current state. However, if the economy takes a turn for the worse, the housing market will most certainly suffer.

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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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