Spring Forecast For UK Real Estate Market Looks Slow
UK's real estate market is off to a slow start this spring as new listing prices have remained at their lowest this year. According to Mansion Global, it's been the lowest since 2011. The average price of property had risen 0.4%, equal to a price of £1,287 (US$1,702). It's been that way in March.
This increase affects listing prices in the UK at an average of £302,000 or a fall of 0.8% at around the same time last year. London has placed a big drag on these prices while average listing has fallen at 3.8%. Despite these declines, however, London was still counted among the most expensive places to buy the property from in the UK and, perhaps, in the world.
Outside London, however, the situation is different. Prices were more manageable with nine out of eleven regions placing prices that are higher than last month, according to analysts. Scotland was the largest monthly mover in terms of asking prices, with an increase of 3.1%, up from an average of £153,174 in February.
London's price decline may be far-reaching, however. According to Telegraph UK, the annual growth showed a 1.7pc drop in January, where it was 2.2pc in December. The annual growth rate has never been in this kind of decline since mid-2016. The decline has since been attributed to a growing case of uncertainty in Brexit, as most buyers have taken to a 'wait-and-see' approach.
The evidence can be seen with the capital's sluggish growth. The Midlands prices have been surging, in contrast, with the West Midlands showing higher price growth. The East Midlands was higher by 4.4 however. It was predicted by analysts that prices would drop like this, during the fourth quarter of 2019, before returning to growth by mid-2020.
This analysis was done with an emphasis on the destructive effects of Brexit uncertainty. It was commissioned by the Royal Institution of Chartered Surveyors (RICS), who are warning that Brexit will also weigh heavily on the UK Housing market. Already, it seemed that Brexit uncertainty was the biggest reason behind the decline.
Sales in February have been at 7% below the very same period last year, although search activity remained at healthy levels. This indicated that potential buyers were still looking at property to buy them. Analysts have hoped that this would lead to a resurgence, one that is possibly sooner than most predictions have foretold.