You are here: Home - Mortgages - Buy To Let - News -

New homes ‘desperately needed’ to stem rising prices

Written by:
The UK desperately needs to build new homes to stem the surge in house prices, an industry body has warned.
New homes ‘desperately needed’ to stem rising prices

The Royal Institution for Chartered Surveyors (RICS) said a shortage of properties coming onto the market “is a major concern”.

“For the market to operate effectively, we desperately need more homes in areas where people want to buy and want to live,” said RICS chief economist, Simon Rubinsohn.

“Until this happens we’re likely to see prices to continue to increase and it is going to be ever harder for many first time buyers to conceive of ever owning their own home.”

The trade body’s latest survey found buyer enquiries increased in all parts of the UK last month, with the exception of Wales where new interest was static after strong growth in previous months.

However, it said the property market continued to be hampered by the lack of homes coming onto the market.

New instructions from vendors continued to fall in March as the predicted ‘spring bounce’ failed to materialise across the UK, the report said.

The increase in activity continues to be accompanied by rising house prices.

During March, 57 per cent more surveyors across the country saw prices rise rather than fall.

Outside London and the South East, prices experienced the most noticeable growth in the South West and the East Midlands.

With no indication that the imbalance between buyer demand and homes on the market is going to change any time soon, surveyors expect prices to continue to increase as we enter the summer months.

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week