So, you are looking forward to getting the latest news on the condition of the UK housing market? The property market in the UK is in crisis at present. The Brexit vote has not been able to arrest the steady rise in the value of assets in the UK. The increase in the demand for property in the UK has increased the value of housing in the nation changing the demographics of home ownership. As per reports, the older people can easily own a home of their own, but the young people will need to wait longer. The problems of UK property or housing market have been exacerbated with the complete insufficiency of construction. This issue is not showing any signs of getting resolved in the long run.
Coming to the prices of property in the UK, they are still on the rise, and they are rising fast. The Brexit vote did not have any effect on the rising prices of property in the United Kingdom. The prices that were around £214,000 in the month of June have not gone up by £24,000. The increase in the prices of houses in the UK is more or less important, but something that matters is the comparison of house prices with the wages. As per reports from Trades Union Congress, in the UK, the real wages have decreased by 10.4% following the financial crisis. This has further exacerbated the deviation between house prices and real wages. According to reports coming from Full Fact, this gulf has widened particularly in London.
It has been put down that the UK should build around 300, 000 new houses every year, but the UK government has never reached this target. Housing supply in the UK is entirely disrupted while the demand for homes has always been on the rise. The housing market of UK is not in good condition as there are more and more renters coming up with their demand for rented houses. It is only because of the gradually slowed down property market of the United Kingdom that the demand for home ownership has declined recently.
Property laws do not allow young people to own houses in the UK which is another factor behind the decline of the housing market in the UK. If youngsters were allowed to own homes in the UK, they would not be on the lookout of rented properties. This would offer some comfort to the gradually declining property market in the UK.