The UK housing market value is determined by the number of residential property transactions. This is deduced by the number of property prices and transactions. The entire value of the housing market is valued at £251 billion in the year ending March 31st. This number is significantly lower than its height in 2007 with a 9.9% drop in prices.
The overall nominal value of houses in the UK decreased. All the data presented is displayed in nominal terms (not adjusted for inflation), so each value represents total transactional value.
London leads the bear market
Despite an overall drop of 4.8% for England, London house market value decreased by 9.5% in the year ending March 2019.
The number of property transactions in the market for smaller residencies increased compared to the previous year.
The housing market has always been one of the leading indicators that a recession is on the way. A decrease in the housing market is only the pre-warning that slowed growth is here to stay. With the Brexit deadline approaching, only time will tell over the next 3-to-6 months how far prices have fallen, and how close we are to the end of the economic cycle.
- By Afolabi Thomas