The Royal Institution of Chartered Surveyors (RICS) has observed a rise in prices and rents of houses in the UK in its latest survey for January 2017. It has attributed this development to the shortage of housing stock as demand continues to outpace supply in the UK real estate market.
In its latest UK, Residential Market Survey, the RICS has said that the housing market needed a ‘turbo boost’ as the supply shortage continues. For instance, the demand for rental properties continued upwards in the last 3 months, indicating the demand for rental homes. “Over the next five years, rental projections point to a cumulative increase of just over 25%, outpacing house price inflation over this time period,” the RICS said.
Likewise, the demand for homes grows with 5 per cent of the surveyors reporting an increase in buyer enquiries. About 15 per cent of the surveyors have predicted a further increase in sales over the next three months. During the last 30, the price of homes continued to rise, reported 25 per cent of the surveyors. Taking into consideration the developments, the RICS has predicted a rise in prices of homes for the next 12 months.
Shortage of supply in both the lettings and sales segments continue to present a huge challenge for the market, according to the January 2017 RICS UK Residential Market Survey.