Property surveyors have stated that there has been a drop in the number of people putting their houses up for sale. This is thought to be a contributing factor to the rise in house prices across the UK’s property market.
The Royal Institute of Chartered Surveyors (RICS) have reported that the number of sellers in the country has dropped ‘deeper into negative territory’. This number does not mirror the amount of people looking to buy a house, which has not changed.
The report showed that the number of homeowners looking to sell has fallen in the last 9 months. This represents the largest rate of decrease since May 2009.
The Chief Economist for RICS said:
“It is conceivable that the decisive outcome of the election could encourage a pick up in instructions to agents and ease some of the recent upward pressure on house prices, but it is doubtful that this will be substantial enough to provide anything more than temporary relief”.
“Alongside an increased flow of second hand stock, it is absolutely critical that the new government focuses on measures to boost the flow of new build”.
This upward trend in house prices is not expected to stop anytime soon, with most surveyors predicting a continued increase in house prices across the next year. Most people across the UK are blaming the increase in prices on the housing markets failure to build new homes, desperately needed to match the growth rate of the national population.
Many Banks have been trying to boost the market by tempting borrowers with low mortgage rates and fixed 5 year rates, some as low as 2%. But is this enough? Head of policy at RICS, Jeremy Blackburn, has stated that the situation regarding housing is now nearing a national crisis.
He goes on to say:
” The last time we were building 300,000 homes was in 1963, which utilised both public and private building. We need a coherent and co-ordinated house building strategy across all tenures”
With the Conservative government introducing side measures, such as extending ‘Right to Buy’ policies and pledging to build more affordable homes, it is being said that this alone will not see the promise of 1 million new homes by 2020 being achieved.
There are however other projects that will make a positive contribution to this pledge, we have another 5 years to turn things around, anything is possible.