UK real estate hits new low, worse than 2009

UK real estate hits new low since the global financial crisis in 2008, which hit the global real estate sector, with a year-on-year decline by 3.1 percent, said the Nationwide Building Society on Monday.

House prices had a year-on-year decrease by 3.1 percent in March, its lowest rate since July 2009, decreasing by 0.8 percent in March, and the average house prices was €257,122. The decrease is a result of the increase in lending costs, which increased the interest rates.

“It is going to be hard for the market to gain back its momentum in the short term, as the consumer’s trust is still weak, and family budgets are still under pressure because of the on growing inflation,” said Chief Economist at Nationwide Building Society, Robert Gardner.

Housing prices are still exhausting, as mortgage rates are still extremely high since last year, Gardner added. All British regions have a slow price growth rate in the first three months of 2023, witnessing a slight year-on-year decrease.

West Midlands had the strongest performance, while Scotland had the weakest, with a decrease by 3.1 percent, East Anglia had a 1.8 percent year-on-year decrease, South East England had a 1.5 percent decrease and London had a 1.4 percent decrease.

The average cost of real estate in London reached £511,293.