June 18, 2019

UK Housing stock hits record low

uk housing stock

According to a report by the Royal Institution of Chartered Surveyors, the average number of properties on the books of estate agents has reduced significantly and not likely to improve anytime soon. For instance, an average estate agent has forty-two homes on their records for every branch in London where the issue of housing scarcity is more prevalent as the number is a meager thirty-three.

The monthly residential market survey conducted by the Royal Institution of Chartered Surveyors comprises the opinions of over three hundred chartered surveyors in the nation. It also observed that the presence of a dominant style in the scarcity of new buyer inquests, newly agreed sales, and new directives.

For the eleventh successive month, the new buyer inquiries recorded a significant fall. The 16pc survey also witnessed a reduction instead of an improvement in new clients with the number of agreed sales also reduced projecting a six-month movement.
According to RICS, buyer demand has dropped significantly in the South East and London while it has improved in the Humber, Scotland, Northern Ireland, and Yorkshire. However, the demand in other places has maintained a flat level. For nine consecutive months since February, the activities in the market have been slow despite an uptick in headline prices of properties in places such as the East Midlands, The North West, Wales, and Northern Ireland. According to RICS, the approximate five-year indicator for the growth of house prices by the end of the year 2023 will be 15pc.

 

uk house prices

 

According to Simon Rubinsohn, the Chief Economist of the Royal Institute of Chartered Surveyors opined that the deviating regional framework is becoming more evident with crucial RICS indicators across significant paths of the nation exhibiting substantial resistance. The records for the South East, East Anglia, and London are suppressed.
In the words of Russell Quirk, the Chief Executive of Emoov.co.uk, an online estate agency portal, he said that it is an excellent idea to note that a small ratio of the members of RICS are working as professional estate agents and their opinions do not represent the view of the real estate industry.

The UK Prime Minister, Theresa May, during this week, blamed the developers for the deficiency in housing as most young individuals are unable to have access to the property scheme and deserve to express their annoyance.
While making public the restructurings to the rules of planning, she confirmed that developers are liable to reserve land as soon as it is approved for development instead of building on it such that the houses that would have reduced the housing scarcity were not constructed. She encouraged the developers to increase their efforts and contribute their quota towards the development of Britain.

 

uk housing stock

 

According to a research done in the past, about 423,000 new houses have been offered planning approval but are yet to be constructed to date. It has been observed that out of every ten submitted planning applications, nine were approved by the councils but developers did not take immediate actions to build the houses as the construction sites were left unattended to after the approval and the councils cannot salvage this situation.

According to Brian Murphy of the Mortgage Advice Bureau said the choice of the purchase is somehow restricted when there are fewer properties offered for sale. He said that those who want to buy properties would have a small number of properties to view and the new buyer enquiries will record a significant reduction.

 

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