The global recession has affected the UK real estate market to a major degree. The downturn has hit the property sector on many levels. Apart from the obvious impact of falling property prices, areas such as construction, commercial and residential lettings and pension funds are also feeling the impact. Yet recently there have been encouraging signs that the worst of the property crash may be over. Information published in June this year by the Building Societies Association, the CBI and the Royal Institute of Chartered Surveyors seems to indicate that confidence in the property market is increasing and that the economy will return to growth at the beginning of next year.
According to a recent survey of the Building Society Association property prices are set to rise by 1.4% over the next year. This represents a fundamental change compared to a 6.1% fall in March and a 7.1% fall forecast in June 2008. Also 59% of people think that now is the time to buy, compared to 54% in March and just 27% in June 2008.
In its news release in June 2009 the CBI predicted that growth in the UK economy will resume in early 2010. It appears that the UK economy is stabilising with the worst of the quarterly falls in GDP behind us.
A recent RICS survey of estate agents showed that activity levels in property sales have improved each month since November 2008, albeit from a very low level. Many estate agents report that they are short of properties to sell. It appears, that for certain types of desirable houses and sought after locations the bottom of the market has already been reached.
At Dorsey we are well placed to guide you through these ups and downs of the current market. Our experienced real estate team will find workable solutions to individual problems to achieve completion of your transaction.