This Bloomberg article is not alone in calling a slump in the UK housing market. However, due to a static economy, absence of a workable Brexit deal with the EU, the continued need for a significant down payment and buyer anxiety - are we more likely to see a sustained fall or crash in home values?
Every market requires consumer confidence and the housing market is no different. With all of these current factors in play, it seems likely that whilst some will continue to buy, many are more likely to delay a purchase which will fuel a further decline. Some commentators would argue that a housing market crash is long overdue and will help to bring home ownership back into the grasp of millions of first time buyers.
The British housing market is weakening after a three-decade boom amid slower economic growth and the uncertainty created by Brexit. London, where the average house price is more than double the national average, has been hit harder than the rest of the country. This month’s declines also reflect a normal summer slowdown in activity, Rightmove said. A separate report by Acadata showed U.K. house prices fell 0.2 percent in June. Most regions in the U.K. still have higher house prices than a year ago, the property services firm said.