Editor’s note: This is the first part of an occasional series. Inman News Publisher Brad Inman is chronicling his real estate observations in Europe as he meets up with real estate industry officials abroad. His travels will take him to Amsterdam, Berlin and Paris, among other destinations. See Part 2, "Online listings battle sweeps U.K."; and Part 3, "Dutch toughen up for downturn."

LONDON — The European housing markets are turning as bitter as vinegar on chips as property sales and prices come tumbling down.

Property values fell to their lowest level in 30 years in September, according to the Royal Institution of Chartered Surveyors.

Prices have fallen 15 percent in the last year with some local experts predicting a 50 percent drop before the bottom is reached. As many as 60,000 homeowners are dipping into "negative equity" per month. The U.S. market began to fall in late 2005. The U.K. market stayed strong until last year, but now it is falling fast.

The property section of The Times of London last Friday led with an article headlined "It’s Chic to Rent: Why being a tenant is suddenly back in fashion." Just nine months ago, buying property was as much a habit as young men going to the pub.

The newspapers are filled with doom and gloom, and blame is slewed around everywhere. A Scottish leader has grown fond of calling Prime Minister Gordon Brown, the "sub-prime minister."

The English seem to be confronting the realities of the market downturn without the denial and Pollyanna mood that was prevalent when the U.S. market went bad, and the industry here is bracing itself for a very cold winter.

In the next segment: The market does not deter real estate technology innovators in the U.K. who build new models and tools around listings and Web 2.0.

Bradley Inman is founder and publisher of Inman News.

 

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