House prices are set to continue to rise as supply declines


Housing

Housing

The shortage of available properties has helped boost home prices, investigators say.

As a result, the majority of members of the Royal Chartered Surveyor Association (RICS) believe that prices will continue to rise next year.

The decline in supply meant that the number of new properties on the market fell by a third in June.

But without falling demand, all parts of the UK continued to report strong rises in home prices, RICS said.

Simon Rubinsohn, Chief Economist at RICS, said:

Investigators reported an increase in net balances of 83% as demand continued to rise and supply remained sluggish.

Going forward, the 56% net balance is expected to continue to rise in price over the next 12 months.

Tenant demand

In June, demand from tenants increased, boosting the rent market and boosting rents.

The investigator’s net balance of 60% pointed to an increase in demand from 48% in May.

However, the lack of instructions from new landlords was exacerbated by a net balance of -32% of investigators reporting a decline in supply.

Researchers predict that rent growth will increase slightly as a result, suggesting a 3% increase over the next 12 months, including London, where the rent market has recovered since the RICS assessment earlier this year.

Soaring

According to investigators, there have been significant surges in Yorkshire & Hamburg, Northern Ireland and Wales.

York surveyor Ben Hudson reported that he “recorded a record high sales month towards the stamp duty deadline at the end of June.”

At Haverfordwest, Wales, Paul Lukas said: “Currently, the sales market is very booming and buyers are moving from many parts of England and Wales to Pembrokeshire.”

But London is showing a different situation, said Putney surveyor Alan Fuller. “In contrast to apartments, inquiries from new buyers are declining, except for large homes, where demand continues to be strong,” he said.

Rubinsohn said the government needs to continue to help increase the supply of new homes.

“The role of credit channels and the protracted ultra-low interest rates cannot be ignored, but it is important to be able to create conditions that support higher levels of new home development in order to address the worsening affordable challenges of the government. “He said.

But he added that homes are “necessary across all ownership,” including social and private rent in addition to owning homes.

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