London house prices continuing to fall and still there is a shortage of houses
In the news today they are saying ……………….
House prices in London are moving in the opposite direction to the rest of the UK – they are falling, according to surveyors.
More surveyors reported that property prices had fallen in the three months to the end of February than those who reported price rises.
The opposite was true in the rest of the UK, with price growth led by Scotland and Northern Ireland.
The data comes from the Royal Institution of Chartered Surveyors.
Price growth accelerated in the South West of England and South East of England, the group said. This was mainly the result of a lack of supply of homes on the market.
Uncertainty, owing to the upcoming election, could have delayed some potential sellers in putting their home on the market, it said.
Two days ago if you have LinkedIn you will see we liked this from the RICS – they said …………..
The debate began with RICS Chief Economist Simon Rubinsohn‘s overview of the current state of the UK housing market.
He commented that our latest UK Residential Market data was showing a UK-wide slowdown in pace of house price growth, which has been particularly visible in the London market, but supply constraints are contributing to feedback from members that there will be a rebound of around 30% over the next five years in the capital .
He added that rents in the private sector are also likely to increase, despite attempts to introduce institutional investment to boost the supply of rental property.
Understanding these figures in terms of the impact they have on people’s lives, it is easy to see why housing is top of the political agenda and, arguably, nowhere is it more of an issue than in London. The shortage of supply and the growing disparity between housing costs and income is driving the political debate. This question time event was an excellent opportunity to explore industry perspective on the issue and examine potential solutions.
The debate turned first to the planning system. The constant threat of change causes insecurity and the unintended consequences of politics, such as that of the community infrastructure levy on affordable housing, have taken their toll.
It was also argued that the planning system is also a barrier to smaller businesses, who, in the past, contributed far more to housebuilding then they do today. As Rob Perrins explains, even larger developers are pulling out of developing on small sites, as the cost of getting planning permission for these sites aren’t proportionally smaller than for larger sites. In fact, they face more rejections.
Our Property in Politics campaign highlights some of the issues raised in the discussion. Informed by member input, it is driving our political engagements.
On planning, for example, we’ve asked for a ‘resource revolution’ that would provide planning departments with the tools they need to effectively make and implement plans, thereby providing the confidence industry needs. However, the question remains whether we change the existing system or keep it and make it work as best as possible.
It will be very interesting to see if there is anything to encourage more new builds in the budget next week
Looking forward to it
Where possible, Affirmative Finance will help property developers, property investors, and individuals with development projects to find funding. Visit their website http://www.affirmativefinance.co.uk
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