Shortage of housing supply in UK set to increase

shortage-housingThe shortage of housing in England is set to become more sensitive due to the EU results. According to a latest report from the Yorkshire BS, Barker Review of housing supply recommended in 2004 that 270,000 new homes need to be built every year which has never been met. The number of properties needed in the UK each year to reduce house price inflation to 1.1% is now likely to be significantly higher than the 270,000.

Andrew McPhillips, chief economist at Yorkshire Building Society says: “The Brexit decision and the uncertainty it created around the predictions for private sector house builders, is likely to intensify the housing crisis. The longer the wait, the supply crisis to get deteriorated and more difficult it will be to resolve. House building has remained stagnant ever since the financial crisis, Lack of housing supply has caused prices to rise beyond wage growth, which has increased competition for properties and charged many people out of the market. This issue particularly affects first time buyers who do not have the ability to withstand the rising cost of buying with the increase in the value of their own property, meanwhile homeowners also face similar obstacles due to the costs involved, as well as being faced with limited choice in the properties available to buy.”

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