Anyone looking to purchase or rent a home in the United Kingdom has been issued with a warning.
According to surveyors, house prices and rentals are on the rise due to a “striking” imbalance between demand and supply.
According to the Royal Institution of Chartered Surveyors (Rics), the number of newly agreed house sales fell for the third month in a row in September, with a net balance of 15% of property experts reporting a fall rather than an increase in sales.
However, a shortage of accessible supply is causing purchasers to compete, putting increasing pressure on pricing, according to the report.
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House prices are rising rather than declining, according to 68 percent of professionals.
In September, a net balance of 35% reported a decrease in properties coming to market.
More over two-thirds of survey respondents (70%) believe prices will continue to rise in the coming year.
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Since May, when a total of 82 percent of surveyors stated that house prices were rising, the rate of increase has slowed.
In the lettings market, 62% of professionals reported a rise in the number of people seeking for a rental property in September, while the remaining 21% reported a decrease in new landlord instructions, continuing a trend that began in July 2020. Rents are projected to rise as a result of the imbalance, according to Rics.
“The disparity between demand and supply remains the most noticeable issue in the latest Rics residential market survey,” said chief economist Simon Rubinsohn.
“And member feedback suggests there’s no reason to expect this problem to be fixed very soon.”
“This is reflected in the forward-looking metrics, with both price and rent expectations at series highs, indicating increased affordability pressure at a time when money markets anticipate interest rate hikes sooner rather than later.”
“Delivering more new houses is a part of the solution, but it’s vital that they’re built in the regions where the gap is most evident.”
“It’s also critical that the supply pipeline’s tenure mix is diverse, helping to handle both public and private sector concerns.”
“The summary comes to an end.”