Categorized | Real Estate

England Housing Market in a Free Downfall

It is almost a year and a half how a United Kingdom real estate and housing market is in the free fall. By the end of April, 2013 it will be 18 months from the start of the real estate market fall. According to some investing and financial experts the fall will continue in the next half a year.

The lowest declinations are in the commercial market where the prices of the office space, warehousing space and other kind of commercial space declined by 0.3 per cent from January 2013.

London based IPD issued a statement earlier this week in which they clearly pointed a negative capital movements, both for the real estate market in London and in the countryside.

We are still seeing subdued returns adversely affected by negative capital movements outside of London” as prices continue to fall there, Phil Tily, a managing director at IPD, said in the statement. “Though the U.K. economy has managed to avoid a triple-dip recession, it is nevertheless going to be a long road to recovery for the commercial property sector.

United Kingdom economy is still fragile and the growth will be smaller than most of the forecasts no matter how conservative they were in the last year.

Just opposite from the capital movements in the commercial and housing sectors in the big urban areas are the movements in the country side land values. Arable and farmland values in Great Britain are almost two per cent high in the last twelve months. Comparing to only one per cent in London this can be counted as a great outperformance.

This values and capital movements are not easy to predict or explain but most of the real estate and investor experts, anonymously comment that this is due to the lack of jobs in the larger cities and disparity between the salaries of the workers in the large urban areas and the price of the apartments and houses. From the other hand prices of the country side land values are going up because the large farms are showing positive performances and they managers are deciding to buy or invest in more land.

 

Igor Gjurovski is internet marketing professional and content specialist. In this moment he works for QuickBuyers. They are national home buyers and real estate agency which is offering cash for homes in United Kingdom.

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