Shortage of supply in both the lettings and sales segments says RICS
The Royal Institution of Chartered Surveyors (RICS) today released their UK Residential Market Survey for January 2017 headlined ‘Market needs “turbo boost” as supply shortage continues’.
The RICS revealed that demand for rental properties continued to increase at the national level in the three months to January and projected rents would witness a cumulative increase of over 25% in the next five years. They stated that shortage of supply in both the lettings and sales segments continue to present a huge challenge for the market.
The RICS said that it expected house prices to rise across the UK over the next year, but that London would continue to be an exception and would see prices decline. Buy-to-let investment is anticipated to decline given the current policy landscape.
Simon Rubinsohn, RICS Chief Economist said: “The scale of the challenge Government faces as it announces its new approach to housing is clearly demonstrated in the results from our latest survey. Not only are the headline price and rent series pointing to further increases over the course of this year, but more significantly, the medium term view of RICS professionals working up and down the country is that both house prices and rents will over the medium term continue to grow at a faster pace than wages putting even greater pressure on affordability. Whether the measures announced can ease this this trend remains to be seen”.
Read the RICS UK Residential Market Survey for January 2017 in full click here
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