Sunday, Apr 26, 2020

Difficult Times

CITY A.M.: Unemployment rate set to surge in UK coronavirus lockdown

The relationship between house prices and unemployment levels has been discussed on this blog years ago. Historically, rising unemployment has been the harbinger for residential property prices falls. Unfortunately, the covid-19 pandemic lockdown appears to be subjecting the UK economy to what might be the most severe economic dislocation for a generation. Obviously, nobody should want this kind of HPC but we have to deal with reality. In one or two years, we will likely see a depresssed property market. I am planning my finances on the assumption that my own house may lose up to 50% resale value within two years. See comments by 'flashman' at https://www.housepricecrash.co.uk/newsblog/2009/07/blog-unemployment-trends-24453.php

Posted by quiet guy @ 06:07 PM (602 views)
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1. britishblue said...

Having run a removal company for over 12 years, I can confidently state that real prices in London were down 15% compared to two years ago before the coronavirus. I have already listed many of the reasons this doesn't show in the indices.There was a significant uptick in business this year and the market was moving but at realistic prices. However, there are going to be longer-term changes. The old formula tended to be that the further you lived into London, the more expensive property became. With the new way of working, many people, in the future will be adopting home working and going into offices once a week. This is going to impact where they choose to live in the future: Inner London with poor air and few green spaces or outer London, with more space, fresher air and a life. 20 years ago, you couldn't sell a flat in an area like Kings Cross - are we going to see a return to city centre being undesirable and out of the city more desirable.

Wednesday, May 6, 2020 10:18AM Report Comment
 

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