Salient to Investors:
Knight Frank said:
- UK home prices will fall 2 percent in 2013 as values in every region decrease for the first time since the financial crisis began in 2008. Residential properties will increase 1 percent in 2014 prices and 2 percent gain in 2015.
- Welsh home prices will slide 3.6 percent in 2012 and 3.8 percent in 2013.
- Scottish values will fall 3.2 percent in 2013.
- London residential property prices will decline 0.6 percent in 2013. Luxury-home prices in central London will be little changed in 2013, which would be the worst year for properties with an average value of 3.7 million pounds since 2008, when values slumped by 17 percent.
Grainne Gilmore at Knight Frank said there’s been a complete reversal of the optimism of the summer, weak economic conditions, nervousness among potential buyers, difficulty getting mortgages for first-time buyers and people moving up the housing chain. Gilmore said no job creation is definitely weighing on the market, which is seeing a gentle erosion of prices.
Hometrack said a real estate market recovery is unlikely without sustained economic growth.