England’s capital, London, is renowned for being packed full of people. I’m sure the vast majority of you have had some sort of encounter with the London lifestyle and so you can understand just how busy the capital can be (though it may not quite be as busy as other capital cities!). With the large number of people in the capital comes a large demand for housing; this is one of the reasons that the London housing market has been so prosperous in the past. There are concerns, however, that the London housing market has been slumping as of late. The London housing market has been slumping as a result of uncertainty (the vast majority of which is a direct result of the Brexit movement). Some analysts, however, would argue that the London housing market slump is coming to an end and that the investment in housing is rising. This is a topic which has been debated for a while now, so let us take a closer look to see whether the London housing market slump is, well and truly, coming to an end.
According to some sources, the London housing market is still suffering as it was previously and the slump is becoming worse due to the Brexit movement. In December 2018, London saw a drop in house prices for the fifth consecutive quarter. The main causes of these falling prices are low levels of economic activity and affordability constraints. Both of these things are making consumers feel less confident, hence meaning that fewer of them are likely to invest in the future. This means that the London housing market is declining, and that the UK economy could suffer too.
According to other reports, however, activity in certain areas of the London housing market is improving. Some analysts have said that activity at the top of the property market has been 7% higher than previous years. The continual appeal of London, therefore, seems to be improving real estate sales, particularly for the more expensive houses. It could, consequently, be argued that these sales are contributing to the destruction of the London housing market slump.
In conclusion, certain areas of the London housing market are continuing to suffer; however, other areas are, once again, beginning to prosper. We must, therefore, hope that this growth continues to take place and that the uncertainty surrounding the London housing market will subside. Only then will the London housing market slump truly end.