Surveyors in the UK estimate house prices to rise over the next year despite a decline in new buyers.
A scarcity of available properties for purchase or rental reduced by 78% as of April, according to the Royal Institute of Chartered Surveyors. Based on a survey conducted with its members, 37% predict that growth will continue in the coming year and the year after that.
Despite the pandemic and the subsequent recession, the number of people looking to purchase a home in the UK continues to rise.
When consumers’ earnings are being pressured, rental expenses have risen as a result.
RICS (Royal Institution of Chartered Surveyors) chief economist Simon Rubinsohn said in a statement Thursday, “Although buyer inquiries have predictably slipped a little of late, this needs to be placed in the context of the healthy level of demand. A probably even more striking aspect of the latest report is the concern being voiced about the rental market.”
However, there were several red flags in the study on the housing market. Buyer interest dropped for the third month in a row, and several brokers expressed concern about sagging sales due to inflationary pressures.
According to Michael Darwin of Northallerton, while “demand for all types of the property remains strong,” there were “more sales are falling through due to job security” and “cost of living increases.”
On the other hand, “Sales have taken a sudden and severe drop,” said Paul Dolan in London.