Lack of housing supply

The lack of housing supply is a story that just will not go away, numbers of properties currently available per estate agent have fallen again from 55 in July to 38 in August, we are actually at an 11 year low for properties available. Where we look to find the reason for the imbalance  at present is quite a task in itself, housing in general is in short supply in both the privately rented and the social housing sectors.

While numbers of those looking to buy dropped over the two months there is still alot of pressure on  UK property prices, especially in the South East and London, the UK property market just keeps going from strength to strength.

So a phenomenom is happening whereby fewer houses are being sold to the likes of first time buyers because they are just not affordable, the figures just do not add up for them when it comes to applying for a mortgage, so less activity at the bottom end of the market due to unaffordability is causing prices to rise, that can’t be right?   First-time buyers who are unable to afford their first home will be pushed to rent property in the short to medium term thereby increasing demand for property and pushing prices higher again, this is something of a vicious circle.

The other factor in all this is the buy-to-let  market which still appears to have legs even after  the intervention of the government with new tax rules applying to landlords income to be introduced soon, added to that lenders are beggining to tighten up further on lending to  the BTL sector in an effort to take the pressure off house prices, however without those landlords who will supply the houses to rent to those FTB’s who are unable to buy for themselves.

Even further up the property ladder there is a blockage due to those looking to downsize not being able to find a property to downsize to, so for present they are sticking with the property they are in, even though  it is too big for them now the family has flown the nest, they are  trapped due to lack of supply in their price range.

The government has a massive task on their hands to rebalance the housing shortage both in the rented sector and that for those who wish to buy their own homes, affordable homes that is. Successive governments have been promising to build more new homes, action is needed now, figures of 200,000 homes being built per annum were mentioned at the beginning of the parliament, lets hope it happens.

 

 

 

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

do i need planning permission for a shed
Home and Living

What you need Planning Permission for in your Garden

Gardens, mostly those at the rear of property, offer us a great diversity of options outside just a lawn and patio area. From outside office space to swimming pools, gardens are a great space in which we can add great value to our lifestyles from leisure to work. Planning permission is the phrase used to…
Read More
Breaking News

BREAKING PROPERTY NEWS – 16/05/2022

Daily bite-sized proptech and property news in partnership with Proptech-X.   nurtur.group continues to strengthen its leadership team With my non-journalist hat on, and to ensure complete transparency, I also hold a position as a non-executive director at nurtur.group – AS Following the recent acquisition of BriefYourMarket, proptech supplier, nurtur.group has announced that Damon Bullimore…
Read More
Overseas Property

How to reside in Spain through an investment

Golden Visa residence in Spain is a residence visa for investors. It was created by Law 14/2013 on support for entrepreneurs and their internationalisation, and its purpose is to attract non-EU foreign investors to Spain. This visa offers legal residence in Spain for a period of 6 months to 2 years depending on the type…
Read More
burglar uk
Home and Living

What do Burglars look for in a House?

We are all aware, unfortunately so, that today we need to be very careful on what we leave on show that could tempt a burglar / thief. Home security has certainly improved over the years including methods of combating crime and deterring those tempted to break in and enter. Especially with the invention of the…
Read More
Breaking News

WEEKLY NEWS ROUNDUP – 13/05/2022

A roundup of the week’s top property and proptech news stories in partnership with Proptech-X   What next for Rightmove as CEO quits? PRESS RELEASE: 5 Million Private Renters Live in Unhealthy Homes Reveals Recent Research by Yuno What does The Queen’s Speech mean for property? What are the real Proptech trends? What next for Rightmove…
Read More
Kerb appeal
Home and Living

Top Tips to increase Kerb Appeal

How many times have you driven past a row of houses and admired an individual property? Something usually catchers your eye be it architecture, colours, plants, flowers, iron work and more. We can all obviously stand out with bright colours and loud design work, though this can be sometimes an eye sore instead and can…
Read More