Strong Prospects For UK housing Market In 2015

Over the past 30 years, a lack of attention from politicians and a lack of funding from local councils have resulted in a chronic housing supply crisis, particularly in the South East of England. The rate of house building has dropped to its lowest level since the end of World War II and it looks likely that this problem will be tackled over the next few years as the result of the newly elected, Conservative majority government.

Having been in the property market for the past 25 years in the South East of England, Romans Group is appropriately placed to provide expert analysis on the state of the market, and what is likely to be in store for buyers, tenants and landlords in the coming years.

With low mortgage rates, current home owners spend more money which in turn, boosts the economy. Vincent Courtney, Romans Group Sales Managing Director commented that:

“Thanks to a combination of low interest rates, a stable government, and recognition that we need more homes, I am positive that people’s confidence in moving will grow, creating more choice for buyers and attracting more sellers.”

However for those who do not yet own their own home, being forced into expensive rental properties or living with parents poses a real problem. The UK needs more new homes for a number of reasons. Firstly, homes get old and dilapidated; they don’t last forever. Secondly, demand is increasing as a result of the UK’s increasing population. Thirdly, the UK’s ageing population and longer life expectancy means that we need more homes for the elderly.

The recently elected Conservative government have pledged to help people to get onto the property ladder via a number of support programmes including the Right to Buy and Help to Buy schemes which they have laid out in their manifesto. These schemes should generate a significant boost in the market if implemented effectively. Peter Coles, Romans Group Managing Director commented that:

“The Government is giving the green light to all the stakeholders to address the housing shortage, so it’s now down to developers, investors and local authorities alike to play their part in ensuring this happens.”

However, it is realistic to assume that it will likely take a long time before the UK has a healthy housing market which ensures that people can house themselves and their families securely and not live in fear of eviction, being priced out of the market or that their homes will suddenly drop in value. Vincent Courtney commented that:

“It’s no secret that it’s become very challenging for first time buyers to enter the property market. However, with more support from the Government through these new schemes will mean that people don’t need to rely on their parents as much, giving them the chance to gain the sought-after security you get from owning your own house.”

He added that:

“Home building companies’ shares have soared today. Five more years of stability and Conservative policies will give the sector the confidence to grow their operations and increase the housing supply in order to satisfy the demand.”

If you’re planning on selling or letting your property request an up to date free property valuation or rental valuation today. For more expert property advice, talk to the team at your local Romans’ branch by phoning 0808 274 3250 to be redirected to the right department.