Lack Of Sellers Pushing Up Prices Across Britain
Rightmove have released new data to show that house prices have reached a new height as the average price of a home across the UK reached a new high of £286,000. Rightmove which is the country's biggest property website has said that the lack of homes coming onto the market coupled with the recent surge in buyers was responsible for the increase in prices and said that there was no sign that there would be any let up as a record number of buyers look to buy a home.
Rightmove saw 20% More Buyers Registere In March
According to Rightmove the number of buyers that viewed their website in March was their busiest since the site was set up in 2000. The number of buyers has increased by 20%. The number of sellers that came to the market was down by 4% and this is where the problem lies. There are simply not enough homes coming onto the market.
Many of the properties that are coming onto the market are being snapped up by a number of people such as buy to let landlords and now wealthy pensioners will be able to spend their pension pots on a buy to let. There is a lot of competition for new instructions and estate agents are increasing the price of each new home that comes onto the market. This is simple economics at work and highlights the problems that we have in the property market today.
Cost of Housing is now at crisis levels across Britain
The cost of housing is high up on the agenda of all of the main political parties as voters struggle to get on the housing ladder. The cost of housing is far too high and the politicians have started to take notice because many voters will be looking at their manifestos to see which party is going to help them most. It is not just buying a home that is now a dream for many people, renting a home is also too high with many tenants struggling to pay the levels of rent being demanded by landlords.
Average house prices in April are now 4.7% over the year. The number of new homes coming onto the market and the failure to meet the government targets over the last 20 years means that prices have been pushed up in both the sales market and the rental sector. The average price of a home in London is now at £594,000. David Cameron's announcement last that his party will give 1.3 million tenants of housing housing associations the right to buy their homes under the "right to buy scheme".
Housing associations furious at David Cameron's right to buy pledge
Tenants will be given the same discounts that are given to council tenants and this has caused an uproar. Housing association tenants currently have a right to buy their home but only at a small discount. Under Cameron's new rules the discounts offered to these tenants will be massive in comparison and is likely to bring about several legal challenges from housing associations across the UK.
But if Cameron gets his wish much of the UK social housing housing stock will be sold off and this will likely cause further problems in the market because many of these homes will end up in the hands of buy to let landlords.Since the general election in May house prices in London have risen by 50%. The north of England has seen an increase of just under 4%.