A Broken Housing Market?on
What does this really mean, who does it affect and can it be fixed?
The market forces of supply and demand have been at work in this sector for a number of years. Not enough new homes have been built to satisfy the demand for housing. As a result, prices have risen and/or been maintained at a high level.
This has resulted in many people being unable to own their own home and are either staying longer with their parents or looking to rent their home. In addition, waiting lists for Social Housing are also increasing.
The Government has a target of 300,000 additional homes each year to increase the supply and are relying on Local Authorities and Housing Associations to deliver these. The private rented sector has to a large degree been disincentivised with the Tax changes introduced by the Government.
Whilst we saw an increase in new homes in 2016/2017, only a small proportion of these were affordable.
The Government, Local Authorities and Housing Associations need to work together to ensure not only the level of new homes required are delivered, but a proportion of these are affordable and social housing too.
To read more articles on the property sector from Nick Symes, Director of Property, please visit: