Housing Market Sees Fewer Homes Available For Six Years
Further pressure has been put on house prices today as news filtered through that the the market has the lowest level of homes available to buy for six years. The data was compiled for the month of April and is already pushing up prices as buyers chase the same properties. According to the Royal National Institute Of Chartered Surveyors (RICS) the number of homes available to buy is so low that we are almost facing a "national emergency". Schemes such as the right to buy and the help to buy scheme had just made things worse because it has stoked up demand for homes that simply don't exist
72% of Surveyors believe prices will rise further this year
In the last survey to be compiled by the RICS that number of new properties coming to market fell for the eighth month in a row. House prices rose in April even though the market was flat highlighting the housing shortage. In another survey of it's members such as surveyors and estate agents the number of people that believed that house prices would increase was up to 72% .
Estate agents will also fuel house price inflation with high valuations
It would seem that the market has clicked into gear again and we now know the result of the general election and buyers and sellers plan for the future. It is hoped that the number of new instructions coming onto the market will go up and ease the pressure on prices. The problem we now face is that estate agents completing against each other for these instructions will pump up the prices even further.
One million new homes promised by 2020 by the Conservative Party.
According to experts the government needs to focus it's efforts on housing supply and not increasing demand with policies such as the right to buy scheme which has been extended to properties owned by housing associations. This is doing to help housing affordability and is diminishing the UK's stock of social housing. Further pressure will definitely be placed on the government to build the 1m new homes that is promised to build by 2020. This promise was made in the \Conservative's election manifest and they will be under huge pressure to deliver.