High house prices will lead to a shift toward renting

High house prices and years without real-terms wages growth have prompted a growing number of young people to abandon the idea of ever owning their own property.

Earlier this week a report by the Resolution Foundation revealed that up to a third of ‘millennials’ face living in private rented accommodation all their lives, and now a separate study has found that people are currently more concerned about property prices and housing availability than at any point in the last five years.

Research undertaken by YouGov has found that 83% of people now consider existing house prices a ‘serious’ problem, up from 77% five years ago. This is despite the fact that asking prices are currently falling, according to Zoopla

The results of the YouGov study reveal a worsening picture for those wanting to get a foot on the property ladder.

Among aspiring first-time buyers, the proportion saying house prices (86%) and saving for a deposit (87%) is a serious problem is up over the past year.

Those looking to buy property in London are feeling the impact of the crisis harder than most, with 90% of Londoners surveyed saying house prices are a serious problem, up from 84% in 2014.

Meanwhile 77% of respondents say availability of housing is now a major concern, up from 69% in 2014, according to the survey, which was conducted on behalf of the HomeOwners Alliance and BLP Insurance.

The quality of homes was also identified as a growing issue, with 57% of adults saying it is a serious problem up from 52% in 2014.

Paula Higgins, chief executive, HomeOwners Alliance, said: “The housing sector in the UK is on its knees. There’s a shortage of building, a constant stream of stories surrounding poor quality and unfair deals for homeowners, a lack of social housing, rising homelessness and a leasehold system that is dangerously broken.”

The results of this survey paint a “bleak picture” for both the UK housing industry and potential home owners, according to Kim Vernau, chief executive, BLP Insurance.

She commented: “Concerns around quality of build reflect the serious deficiencies in quality within design and build procurement which are severely impacting confidence in the housing sector. To meet this challenge design codes and reviews should be implemented industry-wide.

“No single initiative will solve the current housing crisis. Steps need to be taken to stimulate SME housebuilders, embrace technologically innovative build methods and encourage new entrants into an industry suffering from a shortage of skilled workers. It is the responsibility of all stakeholders involved, from government to large developers to SME builders, to commit to meaningful change and push the industry forwards in delivering more, better quality and affordable housing options for those wanting to get on the housing ladder.”  

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Fri, 20 Apr 2018 12:00:08 GMT