Housing Crisis continues as Home Prices fall again in June
Depressing news from the UK housing sector continues as there still appears to be no end in sight to declining home prices. United Kingdom housing prices fell 0.9% on average in the month of June, according to statistics from Nationwide. Not all regions posted the same declines, with Scotland actually reversing the declining trend and posting a monthly increase in housing prices. Nevertheless, the rest of Britain suffered from the reluctance of creditors to give out loans, with far less people being able to find suitable mortgages.
Since the housing crisis and declining in median home prices first began in June of last year, average home prices have fallen by 6.3%, marking a gigantic retraction in the housing sector. Experts attribute much of the decline in price and homes purchased not to a giant decline in first time buyers, but rather in the decline of purchases by movers. Given the current climate in the residential sector, many are opting to stay put rather than move into a new home. With less new homes being purchased, there is obviously a corresponding decline in the amount of do-it-yourself equipment being purchased. The demand for bathroom and kitchen fittings, power saws, and drills, even popular models like the cordless Bosch GSR 10.8 V, has fallen. Shops which specialise in DIY equipment have suffered too, not just realtors or mortgage agencies.
Although statistics are not yet available for June, the amount of mortgages approved in May dropped dramatically by 30% compared to the previous month. This is clear evidence of fewer home buyers, and it is clearly having an effect on the residential market and home prices. There are also huge regional disparities, but even London’s housing market is coming closer to synchronising with the rest of the country. The Belfast and Sheffield areas were the hardest hit with decreases starting from as high 17% percent, while Cambridge and Canterbury posted more modest increases. For real estate brokers and home owners wishing to sell, the fall in housing prices definitely comes as unwelcome news. But for buyers, even despite the tougher loan conditions, the fall in prices can be seen as a welcome benefit.
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