For several decades now, there has been a shortage of housing in the UK, mainly because private investors are no longer taking an active part in construction projects. Consequently, real estate prices of buying, selling, and renting property have always been relatively higher than average. This worsened in 2020, thanks to the COVID-19 pandemic that led to a halt of all residential and commercial property construction projects. However, with the help of
Marylebone estate Agents, you can still find good opportunities in the market, whether you’re looking to buy, sell, or rent a property. With that in mind, here’s a look at the overall state of the real estate market in Marylebone, London, and the UK.
Prices are Rising
After the 2007 global financial crisis, the housing prices in the UK started declining gradually before recovering in 2013, as reported by the Statista. Up to 2019, the prices were not as high considering the slow growth rate. However, the onset of the COVID-19 pandemic saw a sudden rise in real estate property prices, more so because most construction projects stopped. Initially, people had the fear of missing out due to the high demand and shortage of housing. Currently, they have the fear of paying too much as prices have significantly increased within a short period. To give you an idea, in 2020, housing prices in the UK rose by 7.5%, which is the highest growth rate witnessed in the past 6 years.
Falling Demand
Despite the shortage of real estate property in the UK, the demand has substantially reduced due to the exorbitant prices on housing units as well as commercial property. In other words, while people are still willing to purchase property, the prices being charged are not affordable for most of them. This is especially because most people lost their jobs and businesses in 2020, and are unable to afford the mortgage. Others are afraid of the following situations:
- Being unable to afford their dream location
- Depleting their savings
- Being unable to save for the deposit
- Being unable to afford maintenance costs
- Prices reducing after they’ve bought
- Losing their jobs and being unable to afford mortgage repayment
The same trends have been witnessed in the Marylebone area in London, where buying and renting prices are high and the demand is low. Industry experts now recommend the intervention of financial regulators to solve the real estate price bubble situation.
Conclusion
This is the current state of the real estate market in the UK Expert projections indicate that this market will remain flat in 2021 and start growing again in 2022 and that the prices may stabilize after COVID. For any help purchasing, selling, or renting a property in the Marylebone areas of London, don’t hesitate to contact the Marylebone real estate agents.