For the very first time over the last 7 months, home prices in the UK (United Kingdom) have come down with property sellers adjusting to a corrected market of sorts. This could attract more buyers with rising affordability and lower prices sparking higher sales as per experts.
Asking prices for property came down by around 0.1% for July 2018 as compared to the previous month according to reports. Prices came down overall by 0.5% in London as well for the month and prices of smaller apartments came down more rapidly as compared to larger homes. This may indicate a buyer’s market on the anvil with more price cuts anticipated by a large section of market followers.
The housing market in Britain has been impacted by the overall uncertainty arising from Brexit and lower economic growth overall. However, the real estate market may just get a shot in the arm from renewed buyer interest on the back of lower prices. Global investors may also be tempted now to invest in properties in the UK. London’s average housing price is more than double as compared to the national average housing prices.
Other studies have indicated that there was a drop of 0.2% for home prices in the UK for June 2018. However, most areas in the country still have higher prices for homes as compared to the same period a year earlier as per these reports. Inflation of house prices came down to 1.4% in July 2018 in comparison to 1.7% earlier according to reports. Prices came down by 1.7% in London as compared to the year-ago period. Average UK asking prices for homes stood at £309,191 which equates to roughly S$558, 180.
Supply levels are on the higher side with a higher number of sellers as compared to buyers and hence this drop in prices as per many experts. However, the lower prices and correcting realty market will eventually draw more buyers and fence-sitters, thereby raising demand and property prices in turn over the next few months as per expectations. This decline in prices also provides a major opportunity for first-time homebuyers in London and other areas with homes having two bedrooms or lesser witnessing a reduction in prices.