Demand for UK property: An Unprecedented need for housing?


Do people need Gold like they need air and water? Do they need the stock market, bonds, guilts or other investments like they need food? No

But what about housing? Is it a staple basic human need for shelter? To protect and build a family? Now you might think we've gone a little fluffy here, but don't you think this has an impact on the demand? Would you rather invest in something everyone needs, or a few people like?

And here's the reality on housing supply right now:

The Homes and Communities Agency has announced that the number of "affordable housing starts" for 2011-2012 was just 15,698 - a 68% fall on the previous year.

The Government’s proposed 150,000 affordable homes over four years is less than a third of what is needed.

The Institute for Public Policy Research [IPPR] concluded that England is facing a "growing housing crisis" & estimated a shortfall of 750,000 homes by 2025.

Think tank who studied a number of different economic scenarios stated there was a need for 280,000 more homes a year needed if the economy bounced back strongly.

On a regional basis the biggest effect would be in London, with a housing gap of 325,000 homes, followed by Yorkshire and Humberside with 151,000 homes too few.

The Housing shortfall by 2025 is estimated to be in:

• London: 325,000

• Yorkshire and Humberside: 151,000

• East of England: 132,000

• South East of England: 77,000

• East Midlands: 66,000

• West Midlands: 28,000

• North East of England: 16,000

• South West of England: 7,000

And what is being done about the current housing crises?

The official house building figures concluded more homes were built in 1875 than were built over the past 2 years, with fewer than 81,000 completed in 2011.

Kay Boycott, director of policy and campaigns at Shelter said “successive governments have failed to build enough homes to meet demand, pushing house prices even further out of reach.”

“This government urgently needs to take decisive action to build more affordable housing so that young people now and in the future can afford to move out, start their own lives and begin families of their own,”

And John Marais, of campaign group Defend Council Housing, said “It’s the failure of governments past and present to build genuinely affordable houses.

“If there had been a reasonable rate of building houses we would be in a position where we could cope with these sorts of population rises”

So what does this mean?

Will you have more or less chance of letting your Property; fast and for a longer time? Are tenants likely to move once they've found your house? Does this mean your rents will stay firm or drop? As you can see there's a big opportunity for those who can see through the media scaremongering.

Across the UK, the rental market is suffering from a severe lack of new rental stock, according to Spareroom.co.uk

Outside of London, there are 8.8 applicants for every room available to rent - Property demand has become so high that many new rental properties are snapped up within a few hours of coming onto the market - creating a hard and frustrating environment for people looking to rent.

This has led to a shortage of new stock just at the time when the demand for Property is at its highest.

ARLA, the Association of Residential Letting Agents recently reported that demand for quality properties within the private rental sector is still firmly outstripping supply - 58% of members are still reporting a significant gap between supply and demand in terms of rental properties, an increase of 3% from the previous survey.

Rents in the private rented sector are now higher than they have ever been.

Has there ever been a better time to be a landlord?

Mark Homer

Co-founder at Progressive Property, 600 + properties bought & sold.
Full time property investor/analyst/geek & World Record Holder

Author of No.1 Amazon best-selling book Uncommon Sense, Low Cost High Life and Commercial Property Conversions.

About Mark

Co-founder at Progressive Property, 600 + properties bought & sold. Full time property investor/analyst/geek & World Record Holder Author of No.1 Amazon best-selling book Uncommon Sense, Low Cost High Life and Commercial Property Conversions.

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