UK house prices impacted by lack of homes, survey finds
20th March 2015 17:07 - Housing
A recent survey by Your Move and Reed Rains has found that both a lack of homes and the recovering economy are increasing house prices and rent.
In February 2015, the average cost of rent was at £766, a 3.1 per cent increase on the year prior.
London saw an annual rise of 4.9 per cent, which was the second highest annual rise in rent.
The largest rise in the cost of renting was seen in the east of England, which saw a 10.2 per cent increase. This was the most rapid increase of all the regions in the last five years.
Adrian Gill, director of Reeds Rains and Your Move, said of the findings: “The rental sector is carrying the weight of the housing crisis. More homes are needed to house an ever-growing population - the supply simply isn’t there,”
“House prices rising out of reach for people at the lower end of the market makes increasing demand in the private rented sector inevitable. A serious and substantial commitment to new builds is the only way to bring supply in line with demand.” He added.
Markit and Knight and Frank recently published figures which highlighted an increase in the growth of house prices.
The house price index increased to a figure of 57.5 in March. A score above 50 indicated growth with higher numbers, which results in quicker growth.
Although the vast majority of home owners believe that the value of their house has increased this month, the index score stayed below the score of 63.2, which was last year’s score.
Tim Moore, senior economist at Markit said of the findings: “Improving economic conditions and positive labour market trends continue to support UK housing demand, while supply remains tight and there are signs that the revival in new housing starts has paused for breath in recent months.”
The recovery of house prices came after the market stayed flat over the Christmas holidays.
According to the Council of Mortgage Lenders, February saw lending fall by 9 per cent more than that of the year prior.
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