(Newswire.net — August 3, 2020) Bend, Oregon — Hardworking Londoners have been struggling to afford suitable accommodations for themselves for years, often justifiably griping that political authorities and economic actors alike were doing little to nothing to make housing more affordable for everyday citizens. Lately, however, analysts and real estate professionals have been musing about London’s housing market turning around, as the current slump being weathered by prospective homeowners appears to finally be letting up.
Is London’s housing market finally turning around? Here’s what the forthcoming future has in store for home prices in the city, and how complications related to Brexit and other ongoing political crises could impact the price of a good flat.
Sellers are setting realistic prices
For some time, those looking to sell off their property were charging exorbitantly expensive rates that were simply untenable for a great deal of Londoners. These days, however, sellers are setting more realistic prices as they slowly but surely wake up to the fact that prospective homeowners need a fair deal if they’re going to sign the dotted line. Even those in search of good offices to rent in London now have a wider selection of realistic options to choose from, as both commercial and housing professionals realize that more affordable rates are simply a necessity if business is to boom in the future.
Despite the fact that sellers are getting more realistic, analysts continue to worry that fears surrounding Brexit could diminish the potential of UK real estate for years to come. Tense political negotiations have produced no real deal agreeable to all sides of the dispute, and the Royal Institute of Chartered Surveyors is now sounding the alarm regarding the housing market in the near-future.According to RCIS, the current weakness in sales activity will continue unabated because homeowners and prospective buyers alike are largely uncertain about what the future may hold. Continued uncertainty will doubtlessly spell horrors in many sectors of the economy, but the London housing market in particular will be in flux as businesses and professionals who are used to EU membership flock elsewhere.
London housing prices have sunk lately, however, giving some reason to believe that the housing market across the city could generally become more affordable to young professionals hoping to start a bright and long-lasting career there. Prices are about 1.2 percent lower right now than they were this time last year, according to reports from The Guardian, though the lowered property prices could also negatively impact the real estate industry in such a way that the economic gains are offset.
Buyers could be eager for the first time in years
For countless years, buyers have been watching the market with trepidation, fearful to commit their financial heft to the London housing market because of uncertainties surrounding the city’s geopolitical future. With more buyers now eagerly eyeing real estate options for the first time in years, the London housing market could be on the brink of a healthy resurgence. The head of London Residential Research at Knight Frank recently told the Financial Times that his agency has received the largest number of home offers in central London in a decade recently.
As long as buyers are eager to leap forward and embrace London’s central real estate market, the temporary calamities caused by Brexit could be quickly put into the rearview mirror. Confidence, above all else, will prove crucial towards long-term London housing prices. With political conversations having grown far too familiar and boring to many everyday citizens, most folks may be more interested in scooping up desirable property than they are in musing about the future of European unity.
As long as London can continue to woo international students and professionals, too, the city will doubtlessly find that its newer housing developments are in hot demand. Housing shortages in major cities around the world aren’t new; in the United States, San Francisco and other cities have been struggling for years to build enough affordable housing to meet demand. Whether the city can sate these problems by building additional smart homes, which are often ludicrously expensive, remains to be seen, however.
It’s nearly impossible to predict the long-term health of a major city’s housing market with the utmost certainty, but some are musing about a London turnaround despite Brexit looming over the city thanks to increased buyer interest in a number of high-value areas. Until London becomes more affordable for everyday workers, however, the appeal of its loftier and more expensive properties could still prove insufficient to bolster the entire housing market.
Geopolitical tensions may remain boring to some, too, but they’re still crucially important, and the future of Brexit negotiations could have a sudden and jarring impact on how the city’s future prospects are viewed by investors here and abroad. The property market may not be making many people too happy right now, but it remains to be seen if current ire will actually translate into a serious turnaround.