The number of properties currently up for sale is at its lowest level in recent years, the UKs largest mortgage lender Halifax has revealed. However, as public demand for houses remains high, its anticipated this could lead to a surge in house prices across the country.
The last decade has been a turbulent one for the property sector, with volatility and tighter mortgage restrictions stifling the aspirations of both first time buyers and homeowners looking to move; only the buy to let market has bucked the trend and flourished.
Despite greater mortgage availability, people from all walks of life are still finding it difficult to move up the property ladder, as house prices are continuing to soar year on year. Last month, the average house price in the UK stood at andpound;196,067.
Hannah Maundrell, Editor-in-Chief at money.co.uk, commented:
Its going to be challenging for anyone looking to move house in the near future. Prices of properties are exceeding wages and the supply of houses cant keep pace with the publics demand.
The government needs to get Britain building, and to meet the current demand, this is something that needs to happen post-haste. Otherwise, we may all find ourselves in the midst of a housing crisis.
Its advisable for those who are in the situation where theyre looking to buy but cant find the right house, to sit tight for the time being and continue to keep their savings safe. This way, theyll be more than ready to make their move again when the market eases
The attention now turns to the governments forecasts that set out the number of new homes that should be built every year. Recently, the target for the creation of new houses has been consistently missed, partly as a result of the financial crisis.
Numerous other factors have contributed to the lack of new homes, not least a shortage of available land suitable for property development. Furthermore, land prices rose by a whopping 170% between 2000 and 2007 according to the IPPR; and despite an adjustment during the downturn, cost is still making it difficult for smaller investors to purchase land, build affordable housing and walk away with a profit.