“People are worried about the economy, about how the war in Ukraine will affect prices and the rising cost of living,” said Aneisha Beveridge, head of research at UK real estate company Hamptons International. “They’re more cautious.”
The Bank of England decided this week to scrap affordability tests, which gauge borrowers' ability to repay their mortgages, as of Aug. 1. That could increase the risk of first-time homebuyers making purchases they can't afford.
Still, areas such as prime London are faring well, Bill said, as foreign investors flock to the international destination and students return following the pandemic. Secondary cities like Birmingham, Liverpool and Manchester are seeing their prices grow even faster than in the capital.
“As long as the UK is seen as a country with a rule of law, good schools, and the respect of private property, money will always flow in,” Bill said. — Alice Kantor
-With assistance from Jeremy Diamond.
This article was provided by Bloomberg news.