As expected, the UK housing market continued to struggle as the calendar rolled over to the year 2018. New buyers entering the market, total sales, and new property listings all plummeted in January across the country. While experts predicted a slow start for the market, most believe the statistics are far worse than citizens expected.
Housing Market Slides
The Royal Institution of Chartered Surveyors recently revealed the market has gone down in every meaningful way. While interested buyers decreased for the tenth straight month, new properties coming onto the market have neared record-lows. The lowest levels were recorded in mid-2017 when the housing market was barely treading water. Does this mean there is no end in sight for the struggling market?
Sales for properties priced £1 million and above are falling well short of the asking prices, according to the Royal Institution. Up to 67% of properties with that hefty price tag were reportedly sold for less than expected. The two areas that are currently being hit the hardest are East Anglia and London. On the contrary, the cheaper area of Wales has seen decent growth in 2018, suggesting that affordable housing is still alive and well when presented on the market.
Millennials Stay Out Of The Market
Prime Minister Theresa May has made it known that alluring millennials into the housing market is one of her top priorities moving forward. And so far in 2018, May’s plan to attract the younger generation has fallen flat. Millennials are not purchasing homes in London right now, and the only solution appears to be expediting the home-building process. Average property prices have risen 150% in the last 20 years, while people aged 25 to 34 have only seen their average salaries increase by 22%. The Prime Minister knows that Millennials want to purchase homes, but they can’t pay for them right now. That’s why her solution of constructing more affordable housing needs to happen sooner rather than later.