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Property shortage starting to become apparent

Property shortage for both sales and rental properties are being reported by Richardsongill in Seaton.

property shortage

Property shortage are a result of recent changes to personal tax and an additional 3% stamp duty have dealt a blow to the rental market stock. We have noticed the steady decline in private landlord purchases since the start of the year. The demand for good quality family housing has increased as the availability is becoming more scarce leading to a property shortage. This is not good news for families needing good quality accommodation. A report published by the Royal Institute of Chartered Surveyors today states :

Landlords are likely to pull out of the UK housing sector in the coming year owing to policy changes, surveyors say.

Nearly two-thirds of surveyors asked by their trade body said more landlords would exit the market than join it in the coming year.

Investors have been hit by changes such as a stamp duty surcharge.

As a result, private rent rises were likely to outpace house prices in the next five years, the Royal Institution of Chartered Surveyors (RICS) found.

Paul Bagust, from RICS, described the findings as “concerning”.

“A functioning private rented sector is crucial to a healthy housing market,” he said.

Landlords now face a 3% stamp duty surcharge levied on newly-purchased second and subsequent properties. They also face a gradual loss of tax relief on mortgage interest payments.

Some of the changes were a response to concerns from first-time buyers that they were regularly outbid by landlords.

Yet, as a result, RICS’ members predicted that rents will rise at 3% a year for the next five years compared with an annual 2% increase in house prices.

Demand ‘stalls’

On the UK housing market in general, the RICS survey found that interest from property buyers had been static for nine months.

Buyer enquiries and sales were little changed in August compared to July, continuing the recent trend.

However, it found that house prices were rising in many areas of the country including Northern Ireland, Scotland, the North West of England, and the South West of England.

Surveyors predicted that house price falls in central London would continue for the next three months.