YouGov, a market research company, conducted a new survey across the UK that reveals citizens believe house prices will fold soon. Nearly half of all the survey participants say they expect the crash to happen within the next five years. And even worse, nearly a quarter of all participants think it will occur within the next two years.
Cause For Concern
The decline of the UK housing market has been a sight to behold since Britain decided to leave the European Union. The Brexit vote has caused a collective pause throughout the market. Home buyers and sellers are hesitant to do just that – buy and sell. Turmoil in government was expected to hurt various markets, but UK’s housing has been hit the hardest to date.
The official numbers in YouGov’s survey show 53% of citizens fear for house prices in five years, while 24% expect a crash within the next two calendars. YouGov polled more than 2,000 UK locals for the feedback. The overwhelming majority of people seem to be pessimistic about the market due to the downward trends that persist across the country.
House Prices Continue Sliding
House prices have grown at its slowest rate in more than five years. Data compiled by Rightmove shows asking prices grew 1.1% from a year ago. This is down a full 2% from the month of August. Generally, the market picks back up after the slow summer months – this is certainly not the case in the UK right now.
London, consistently one of the UK’s stronger markets, has fallen as well. Asking prices have dipped by 3.2%, which is the biggest decline this decade. Four usual hotspots saw huge declines in housing prices which has hurt London. Hammersmith, Chelsea, and Kensington saw significant dips in the past month. The only hope here for various UK markets is that the falling prices will attract more buyers ready to pounce on housing bargains.