Monday, 21 June 2021

Buyers and renters feeling the squeeze

Buyers and renters feeling the squeeze

A SLOWDOWN in the supply of new homes in April has seen price growth accelerate across the UK.

The latest residential market survey by the Royal Institution of Chartered Surveyors also found that a lack of new properties to let has put pressure on prospective renters.

A lack of fresh property listings was the biggest concern cited by respondents, with many saying it was not nearly enough to match the level of interest being shown by potential buyers.

RICS’s chief economist Simon Rubinsohn said: “Housing supply, or more pertinently, the shortfall in supply relative to demand is the key theme coming through loud and clear from respondents to the latest RICS survey.

“While it may be simplistic to assume that higher numbers alone can redress the affordability issue particularly in a low interest rate environment, an uplift in delivery does have a role to play. Planning reforms as outlined in the Queen’s Speech are likely to provide part of the answer although it is critical, particularly with regard to permitted development rights, that quality and safety are not compromised.

“Ensuring a broad range of tenures in the delivery pipeline is also important with anecdotal evidence from the survey emphasising a severe lack of stock in the private rental market as likely to drive up rents sharply over the next year.”

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