Market Research Sees UK Housing Prices Drop Everywhere except London
10th July 2012 15:28 - Construction
According to the Royal Institution of Chartered Surveyors latest study, housing prices are easing for prospective buyers throughout the UK, except for London.
The June survey discovered that 22% more surveyors are reporting price falls than rises, indicating that housing activity remains in the doldrums for property owners looking to sell.
London however is the only area to report rising house prices, with a 19% increase predicted in the next five years. This compares to a mere 6% hike over the same period throughout the rest of the UK.
Average house prices in the capital are expected to soar from £360,000 at present to £434,000 by 2017, whereas outside London they should rise minimally from £162,000 to £171,000.
This spells bad news for young adults aiming to buy a home in London. The main reason for the home price hike is predominantly attributed by Savills to a chronic lack of building in the capital. Despite rapidly escalating prices, the failure to build is being blamed on banks - development finance for builders is less forthcoming, while buyers (especially those on lower incomes) are finding it increasingly difficult to obtain mortgages.
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