The Royal Institution of Chartered Surveyors warns that the imbalance of supply and demand in the housing market “will lead to even stronger price gains over the next 12 months”.
Chief economist RICS Simon Rubinsohn “This trend could be brought to a halt when base rates do eventually begin to rise but the dovish tone to the latest Bank of England inflation report suggests the first move will come a little later than previously thought likely and that subsequent increases will be very gradual indeed”.
The institution blame the continued lack of ability by the government to address the problem of new homes supply. RICS’ head of policy, Jeremy Blackburn has commented saying “A coherent and coordinated house building strategy is required across all tenures. This should include measures that will kick-start the supply-side, such as mapping brownfield, addressing planning restrictions and creating a housing observatory to assess the underlying economic and social drivers of housing and provide the impetus for solutions”.
The RICS says a shortage of homes for sale shows no sign of immediate change in the near future, as the number of properties on the market have fallen for six months, whereas the number of new buyers inquiring has increased in the last four months.
Each member of the RICS has an average of 47 homes on sale, with new listings decreasing in nine out of the 12 regions. East Anglia has seen the most dramatic drop.
RICS continue their waring saying there is a now “vicious cycle, as the limited choice on offer is deterring would-be movers and therefore further restricting new instructions”.