An economic report published today, Monday, expects housing prices to decline in Britain during the next year by up to 5% in light of the high rates of interest in real estate financing loans.
According to a study from the real estate-focused Zobla website, the drop in house prices will cancel out the rise seen in prices over the previous eight months.
Real estate in the British capital, London, will face the largest decline in their value, with the fading gains achieved by prices during the past 13 months, according to this scenario, which will witness the high real estate financing loans interest rates to about 4%.
“The direction of interest rates for mortgage finance will determine the spending power of customers who are already struggling with high living costs in the coming year.
Property owners who want to sell their homes will do so during the coming year. They may have to give up the gains their real estate made during the time of the Korona virus in order to sell their properties, so they should set realistic pricing.
The leading British provider of real estate finance is predicted by the Lloyds Banking Group to reduce prices by 7.5% over the course of the next year. At the same time, analysts at several British banks predict a worse scenario for the real estate market.
9%, and in the worst scenario, perhaps 18%.
According to a report, housing costs will drop 5% in Britain next year.
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