UK Housing Market Thirsty for More Activity
The writing is on the wall, or maybe on the streets as you walk through London and maybe two or three other housing hot spots. The UK housing market is struggling and the near future looks like a lot of the same. Perhaps one of the most telling figures is the number of properties still on the market provided by the website Rightmove. Almost three fourths of properties placed on the market for sale during the first half of this year have yet to move. This has led to the number of new sellers dropping by more than 10%.
Mark Montgomery, commercial director of 1st Property Lawyers, commented on the current housing market, saying: "The primary factor is the uncertainty. People's perception of the housing market and their own situations can change and they decide that they are not going to buy or sell any more. In any market with a chain you only need one element to falter and the whole chain is affected."
The homes which continue to sit on the market may be doing so for good reason. Asking prices are out of line with market values in many instances. Rightmove has revealed the asking price averaged 236,597 pounds during the month of July. In contrast, the average home price in England and Wales is 161,479 pounds. This gap begs the question, how much is the average home buyer willing to pay for their next dwelling?
Several experts believe home prices will have to drop even further for a recovery to grab the market and run with it. Jonathan Davis, financial adviser, thinks the main components of a flourishing market are out of sorts, saying: "The simple reality is that house prices are too high in most parts of the country, and until they fall significantly there will not be a strong housing industry,"