Property shortage contributes to near zero price growth

August 27, 2017 by Brendan O'Neill

Property Market

According to the latest UK Residential https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Survey, produced by the Royal Institute of Chartered Surveyors (RICS), tax changes, political unrest and a shortage of property are all contributing to faltering price growth, which remains close to zero.

The survey is regarded as a reliable indication of current house prices. It found that the percentage of surveyors that predicted house price increases had fallen to +1 in July this year, compared to June’s figure of +7, which may indicate that price growth has fallen close to zero during that period. However, the figure disguises huge variation throughout the country.

According to RICS, the main factor in the price growth restriction was the shortage of property listings, as new listings had fallen for the 17th consecutive month. As estate agents have fewer properties on their books, there is far less choice for buyers. Other factors which impact on price growth included the stamp duty changes, which had been introduced in 2016, and fewer new build homes.

The chief economist for RICS, Simon Rubinsohn, said the survey was concerning, saying:

“Sales activity in the housing market has been slipping in the recent months and the most worrying aspect of the latest survey is the suggestion that this could continue for some time to come.”

Buyers can benefit from some of the lowest ever mortgage deals being offered by lenders currently, assisted by the knowledge of CeMAP qualified mortgage advisors, who know the lending criteria of most of the lenders.