New recession in the UK
After the post-Brexit situation seemed to be a distant memory, the UK real estate market faced a dramatic situation. However, analogous to all the other nations of the globe. The one relating to the epidemic emergency from Covid. Although revitalization policies have been implemented, even in this case, it has not been possible to obtain the desired results.
One of the strongest real estate markets ever, is undergoing a slow crisis, which seems to have knocked it out. In detail, the rents are in the eye of the hurricane. A little for cultural reasons (which lead the British themselves not to buy a house but to sign leases), a little for external demand increasingly focused on rents. In today's column, we will try to understand what the situation is currently in this country and, above all, how much the total loss of the British real estate market is. So if you want to buy a property, sign a lease, or simply if you are interested in the subject, you just have to read the next lines!
We start from the estimated data, according to experts, a drop in annual leases of an average of 5% is assumed. Until 2024. Which means one thing: perpetual recession for the UK. As for the total losses, in this case we are talking about over 4 billion pounds. Especially in the districts of Westminster, Tower Hamlets and Wandsworth. It is therefore clear that the most affected city will be that of London. The owners must therefore prepare for the blow.
This is because potential investors will also be affected by this situation. Or the tenants themselves. In fact, it is assumed that the reduction in income will cause greater uncertainty in the labor market, and consequently a loss of interest in real estate.
Among the most popular alternatives, to try to remedy this crisis, we identify long-term contracts. In order to guarantee a safe entrance. For owners who have not yet signed a contract, the considered option improves is, therefore, to offer a rental based on these contracts.
In addition, it should be noted that most of the solutions (in terms of rents) on the London market do not meet the new post-Covid parameters. We refer to the presence (highly sought after) of large green spaces, areas dedicated to teleworking and larger and more isolated rooms.
In a reality like London, finding a bargain deal is almost impossible. In short, we certainly cannot speak positively of the parenthesis that the national real estate is experiencing. It is obviously hoped that everything can be resolved quickly. Hoping that no further contrasts will arise between supply and demand. While waiting to find out more, we invite you to consult our portal every day. You will find interested and always up to date articles on how the national and international real estate market is moving. Obviously in full Realigro style!
One of the strongest real estate markets ever, is undergoing a slow crisis, which seems to have knocked it out. In detail, the rents are in the eye of the hurricane. A little for cultural reasons (which lead the British themselves not to buy a house but to sign leases), a little for external demand increasingly focused on rents. In today's column, we will try to understand what the situation is currently in this country and, above all, how much the total loss of the British real estate market is. So if you want to buy a property, sign a lease, or simply if you are interested in the subject, you just have to read the next lines!
We start from the estimated data, according to experts, a drop in annual leases of an average of 5% is assumed. Until 2024. Which means one thing: perpetual recession for the UK. As for the total losses, in this case we are talking about over 4 billion pounds. Especially in the districts of Westminster, Tower Hamlets and Wandsworth. It is therefore clear that the most affected city will be that of London. The owners must therefore prepare for the blow.
This is because potential investors will also be affected by this situation. Or the tenants themselves. In fact, it is assumed that the reduction in income will cause greater uncertainty in the labor market, and consequently a loss of interest in real estate.
Among the most popular alternatives, to try to remedy this crisis, we identify long-term contracts. In order to guarantee a safe entrance. For owners who have not yet signed a contract, the considered option improves is, therefore, to offer a rental based on these contracts.
In addition, it should be noted that most of the solutions (in terms of rents) on the London market do not meet the new post-Covid parameters. We refer to the presence (highly sought after) of large green spaces, areas dedicated to teleworking and larger and more isolated rooms.
In a reality like London, finding a bargain deal is almost impossible. In short, we certainly cannot speak positively of the parenthesis that the national real estate is experiencing. It is obviously hoped that everything can be resolved quickly. Hoping that no further contrasts will arise between supply and demand. While waiting to find out more, we invite you to consult our portal every day. You will find interested and always up to date articles on how the national and international real estate market is moving. Obviously in full Realigro style!
