Over the past two months, property prices in Britain have fallen markedly, and in December reached an extremely low level for the year. Analysts predict that in 2011 they decreased by 5%.
In November, the UK property fell by 3.2% in December - a further 3%. Such data leads one of the UK's largest portal for real estate Rightmove, arguing that it is the most significant drop in the price index since 2002.
Decline in prices was noted in each of the 10 regions of England and Wales, where Rightmove has his stats, reports Bloomberg. The most significant drop - 5% - was recorded in the region, the West Midlands. In London, prices fell on average by 2.7%.
In early 2010, there were conflicting reports about the state of the UK property market. According to some accounts, the prices in this period decreased, but it was treated as a "temporary phenomenon." In March, the market saw "a seasonal recovery." In the following months continued to rise is not too active in real estate prices, but in July it was first recorded drop the price index - 0,6%, after which the market is "headed" for a fall. In September, all the economists predicted a further decline, and these predictions come true with a vengeance.
According to analysts of Rightmove, the continuous price decline will likely continue as long as the country's economic recovery becomes more sustainable.
One of the main reasons to further reduce the cost of housing will become the state cost-cutting measures that could lead to the elimination of 330 thousand jobs. As a result, substantially increase the number of objects expropriated property. In an effort to sell the surplus of housing, banks will appoint the most competitive prices, which could lead to a nationwide drop in the price index for real estate. At best, prices will remain at current levels, but analysts are predicting their fall by another 5%.
As experts Rightmove, further decline in property prices mainly affect the northern regions of England. At the same time in London, prices are kept at the most stable, and next year could even increase by 3-5%.