The poor supply of housing in the UK is down to a number of factors. As it stands Builder/Developers cannot meet the demand and do not build properties that first time buyers can realistically afford. In the 1980’s the households that were able to purchase a home was 46% greater than it is in today’s society, which is at least 10% less. Kate Barker was asked last year to investigate the housing market in the UK and her findings were delivered to the housing budget.
The above graph shows the decline of being built from 2012/2013. In the last ten years the number of new builds being built has fallen dramatically, and is now 12.5% lower than the previous decade. This combined with the cost of houses has a detrimental effect on our economy.
In England house prices alone have increased as much as 2.4% on a yearly basis, compared to the EU which averages at a steady 1.1%.
A weak supply of houses and a low availability of affordable housing is causing a dramatic strain on our economic growth and causing a divide between people who can afford and people who can’t. In 2003 the effects of the strain were shown when there was an average of 93,000 households in temporary accommodation.
In order to try and put an end to this detrimental effect it has been predicted that at least 70,000 houses in the private sector are required to lower house prices to an 1.8% average, house builders would need to build an additional 120,000 houses per annum to deal with inflation, costing in the region of £1.2b to £1.6b That said the demand for new housing can affect the quality of product provided, with no legislation in place to regulate the builders Snagging survey’s should be and could be integrated into the purchase process, as it stands any one purchasing a new build would be well advised to instruct a http://www.hich-ltd.co.uk/services/snagging-survey/ to protect their investment and give peace of mind for your new home.
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