The housing ministers in the UK admit to the problem of shortage in housing supply. A conservative MP in the UK asserted that 2 million families could not get homes as landlords are buying-to-rent.
A Neil O'Brien study suggests immediate action is needed to prevent people from buying property for investment. The study recommended abolishing tax benefits on such deals and taking actions to curb foreign acquisitions.
Most believe building more homes is the only answer to rising challenges in the housing sector. In April, the demand for the house was high.
The market, which was believed to be a buyer's market in February and March 2018 –when the sellers were selling homes for low asking prices, turned into a seller's market in April when the asking price of homes increased. At least 14 per cent of the buyers were purchasing homes at the new asking prices.
Owning Vs Renting
Unaffordability is one of the key reasons for not buying property, but most youngsters prefer owning a home to renting, as owning provides a secure investment compared to renting. It provides freedom to use the dwelling space you want.
The disadvantage of owning is that people who are not in a secure job will not get funds to refurbish their house or even buy the home of their choice. People do not want to own a home if they are not in a secure job and prefer renting if they find the process of home buying is too complex or if they are not getting the property of their choice in their desired locations (or job location).
Renting is costly, and renters spend 10 per cent of their monthly income on rent. However, renting allows you to move when needed, and the renter has no responsibility to maintain or repair the property.
The rental prices in London rose significantly in the previous years, and now buyers believe the market has overstretched, so the prices in London are flattening. Nevertheless, the prices of other regions, e.g. the Midlands and the South, continue to grow.
Detached Family Homes
Detached family homes are getting more queries than any other property, and the value of detached homes in the East Midlands rose by 6.2 per cent and in the East of England rose by 7 per cent. In the South, buyers are getting away due to an increase in stamp duty where the price varies in the range of £300,000 to £500,000, while, in London, the price of a detached house rose to £907,329.
However, even in subdued market conditions, the price of terraced homes and detached historical (even old) properties are increasing.
Commercial Property Market
The commercial property market in the UK shows the demand was unchanged in Q1 2018 as per y-o-y. The tenant demand remains unaffected, and investors seek a range of properties in offices and industrial assets and retain them. However, the highest enquiries are from foreign investors seeking investment property, and the supply of such property continues to decline in the year.
Most investors expect growth in all residential and commercial properties in Q1-Q2.
Affordability, unsuitable accommodations and uncertain economic factors are some problems faced by home buyers. However, the national figures for industrial property are positive in almost all regions in the UK.
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