The UK will continue to experience housing shortage this year with the government falling short of its target every year.
“The fundamental shortage of housing will continue to underpin the market, regardless of the outcome of Brexit negotiations as the government is notably short of its target to build 300,000 new homes a year,” global real estate company Colliers International said in its latest announcement.
For successive years, the government has been unable to meet its housing targets, impacting the market in the long-term. In the process, the gap between the demand and supply of housing is widening.
The government announced several initiatives in 2017 to defuse the housing crisis. The exemption on stamp duty for first-time buyers in the UK for properties up to a value of £300,000 is a relief. But the impact of this announcement will be known only after the first three months of 2018.
House prices are expected to remain stable this year going by the latest trend. Though Brexit, snap elections and the rise in interest rate last year affected the house prices, the market is under pressure because of dwindling housing stock. Consequently, the average house price growth in the UK is predicted to be approximately 1.5 per cent this year, Colliers observed.
Increased funding for government initiatives such as Help to Buy will also give a boost to properties priced at £600,000 and below.