Shortage of available housing continues to push prices up

Housing supply in the UK fell for the eighth consecutive month in October, a new survey from the Royal Institute of Chartered Surveyors (RICS) has revealed.

Not only has property supply fallen, but homebuyer demand has increased for the second consecutive month, according to the RICS UK Residential Market Survey, which found that 10% more RICS members have seen a rise in homebuyer demand.

The RICS has also reported an increase in property prices, with 23% more surveyors noticing growth rather than decline in October, compared to 18% in September.

The exception was London where 16% more RICS members experienced house price falls.

Simon Rubinsohn, RICS chief economist, said:

“The dire shortage of available housing across the UK is continuing to push prices upwards, regardless of the uncertainty linked to the ongoing discussions surrounding Brexit.

“We are only weeks away from the Autumn Statement, and it will be interesting to see what measures – if any – the Chancellor will put in place to increase housing supply and create a more affordable market.”

The lettings market also experienced an increase in demand in the three months to October as 29% more surveyors saw enquiries pick up. Consequently, 34% more respondents expect to see rents rise in the near future.

Again, London was the exception with 12% more respondents predicting a fall in rental values over the next three months.

The government launched a new fund to help build 225,000 extra houses earlier this year, and is expected to announce further measures in a White Paper, which according to the BBC could be published as soon as the Autumn Statement on 23 November.

 

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