Featured in Property Industry Eye
An increase in demand,
coupled with the growing property stock shortage, is placing upward pressure on
property prices and rental values across most parts of the country. The slow start to the year for Britain’s
housing market extended into February, before the chancellor Rishi Sunak
announced an extension of the stamp duty holiday and the introduction of the
new 95% mortgage guarantee - measures that are expected to revive the
recent property boom.
The Royal Institution of Chartered Surveyors
said new buyer enquiries remained negative, but by less than in January, and
new sellers were deterred by ongoing the pandemic.
RICS’ monthly gauge of residential property
prices increased to +52%, slightly higher than +49% in January and still
signalling widespread growth in property prices and sales over the next few
months.
Other measures of Britain’s housing market
have also suggested that activity in the property market was unsurprisingly
starting to slow ahead of the planned expiry of the stamp duty at the end of
March - before the deadline was extended by Sunak.
Three-quarters of responses to the RICS
survey arrived before Sunak’s announcement on 3 March.
“[The measures] should help support the
housing market over the coming months with concerns around a cliff-edge end to
the stamp duty break eased,” said Simon Rubinsohn, RICS chief economist.
“However, a very clear message emanating from the latest survey is that more needs to be done to address the shortfall in supply with price and rent expectations very evidently continuing to accelerate.”
Surveyors expected incomes from rental
properties to increase over the next 12 months with the exception of London,
where chartered surveyors expected flat rents.
Tahir Farooqui, CEO of private rental
platform Canopy, said “Renters need more support to get out of the cycle of
renting and get a foot on the housing ladder.
“Wider adoption of affordable financial products that help people build a good credit score will lead to more people passing affordability checks and securing a mortgage. Open Banking-based rent tracking is already supporting Generation Rent who have been further pushed away from homeownership by the pandemic.”
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