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Property News > Analysis Suggests UK Property Sales Not Recovered from 2007 Economic Crash
Analysis Suggests UK Property Sales Not Recovered from 2007 Economic Crash
It has been a decade now since the global financial crisis, and while much has been done to help the economy to recover, property sales in the UK have still not fully recovered. This is based on new analysis of Land Registry data.In the research it has been found that between 1995 to 2007, there were an average of 43,898 sales each month. Comparing this to the 2008 to present average of 27,023 it is obvious that the property market is still struggling to regain the strength of pre-crisis averages.When looking at how strong the market can be, May 2002 was an example of one of the strongest months with 61,904 transactions being completed. The lowest was 2009 with 11,740. This is based on research by online estate agent ‘House Simple’.This shows the level of the problem when 2002 saw four of the biggest months for completed property transactions per year. Three of these months all managed to exceed 60,000. Post-economic crash, the closest the market came to these kinds of values was March 2016 where the value rose to 56,183 completed property sales registered with the Land Registry.What these values show is the impact of the global financial crisis and the effect it had on the UK property market. While there has been recovery, completed transactions are still low. They may be double what they were in 2009, but there is still obviously a long way to go for the property market to return to pre-crash strength.What we do have to consider is the fact that the property market was doing very well before 2008, and this was at a countrywide level. The effect of the financial crisis was to push property transactions to rock bottom, something that takes time to recover. With the housing crisis, it is fair to say that this further hit the problem. If the Government’s new schemes to provide more affordable housing,more growth may be seen.The problem with this of course is that there are many issues with the new housing schemes, and just how it affects the property market. With signs that home building is already struggling, and the looming problems of Brexit, there are still many issues that have to be remedied. It will be interesting to see if the Government has the ability to bring more success to the property market.There is one glimmer of hope though, and this surprisingly concerns London. With the global crash, there was actually an influx of overseas buyers in the city, as it was seen as a safe haven for money. While this may have slowed, it still helped the UK housing market stable. The property market may have changed post-crash, but most importantly there is hope for things to get better.