The United Kingdom’s housing market continues to lose value, and its outlook for 2018 is already pretty dim. According to Fitch Ratings, the UK is one of the only major markets in the world where house prices are not expected to grow at all. If that prediction holds true, it would simply be further confirmation that the UK is home to one of the worst housing markets in the world.
Housing Forecast For The Year
The Fitch Ratings agency believes average prices across the UK will fall flat for the entire year. The area that could be hit hardest is London – a city that continues to struggle with its housing market. The capital of England has already seen its luxury housing lose value; this is due directly to the ongoing Brexit situation. In the first nine months of last year, housing prices decreased 3.2% across the city.
The faint outlook for the UK housing market is in contrast to many other countries across the world. The United States is currently on a run of record-highs throughout the market. Prices are expected to climb to its highest rate in more than ten years. America’s neighbor, Canada, continues to see growth across its housing market. Notable cities like Vancouver and Toronto have experienced massive price increases recently.
A record number of UK citizens are currently moving out of their homes. Right now, more than 370,000 households are on the market. But this development isn’t necessarily bad news for the UK housing market. The high number is due to the low mortgage rates, which has caused the large demand for housing. The number of houses on the market is already up two percent from 2017. Pricing for these homes has increased as well. The average price of a new home has grown by more than forty percent in the past few years.