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The Harsh Reality of Our Housing Shortage
Saving up to buy a house? You had better make the jump very quickly. The housing shortage in the UK is so bad in the current climate that it has been estimated that property prices are expected to rocket for at least 5 more years.
The Royal Institute of Chartered Surveyors (RICS) have predicted that rents could rise to an average of 5% more each year, for the next 5 years. This comes in at above what house prices are estimated to rise to over the same period of time, which is 4.7% annually.
Those who have tried and failed to get onto the housing ladder would seem to have given up hope of ever being able to put their money towards their own mortgage. They have no choice but to pay the going rate or to move elsewhere where the costs of living and renting are cheaper.
It is seemingly obvious that there just aren’t enough houses to satisfy the demand. The RICS have warned the public that nothing the government currently have in their plans is appropriately compensating the lack of supply within the housing sector. Britons wages are not rising as fast as the house prices, to buy or to rent, which is also creating further frustrations.
A recent housing research report commissioned by an estate agents group estimated that property prices will rise by 50% in the next decade and rent is expected to rise to 37% on the back of this, to an average of £171 per week. The National Association of Estate Agents and Association of Rental Letting Agents have pegged the average home in Britain rising to a cost of £280,000 with prices expected to rocket to an average of £418,000 by 2025.