Arthur takes a look at new research that suggests property sales are expected to slow, whilst the prices of properties are expected to continue to rise.
A recent survey by the Royal Institute of Chartered Surveyors (Rics) suggests that the amount of surveyors expecting property sales to increase over the next three months has decreased by 4pc. This news comes as the market enters its tenth straight month of stagnation regarding instructions to sell, but also after the final months of 2016 had shown hopeful signs of increasing sales. As sales slow, it is no wonder that research is also showing that property prices are rising.
The rising cost of houses has seen the worth of the British housing stock increase vastly. In the past three years, the housing stock has increased by £1.5 trillion. Low interest rates, combined with a stagnant property market have led property owners to think twice about selling their houses, meaning those that do sell can expect to sell for a higher price, even with a slower market.
However, this increase in the housing stock has not been spread equally throughout the country. The value of homes in London and the South-East topped £3 trillion for the first time, meaning that one area of the country accounted for almost half of the total cost of U.K. homes. Of the £3 trillion, the London boroughs of Westminster and Kensington & Chelsea accounted for £232 billion. This London-centric wealth is typical of the 2016 rhetoric.
However, another similar stat shows that within the United Kingdom, people aged fifty and over own around £3 trillion of housing wealth. For those attempting to get on the property ladder, it is becoming more and more difficult, as prices rise and sales slow.
With the upcoming enactment of article 50, it remains to be seen what effect this will have on the property market. However, both local and the national government are taking steps to try and stop the growth of ‘Generation Rent’.