The latest 2015 Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey has revealed that house sales and even inquiries from interested buyers went "flatline" in March amidst home shortage in the market, reports rics.org. The website notes that this is the second straight month that home supply fell, thus, pushing the prices up again.
The demand outweighing the supply is generally felt in the country. Surveyors reported a year-over-year 21 percent increase in prices this March, up from 15 percent in February, and around 15 percent of the surveyors expect a rising home price trend over the next quarter, adds rics.org.
RICS Chief Economist Simon Rubinsohn said that the increase in prices is a cause for concern.
"Even more worrying are the tentative signs that price momentum could be set to pick up once again as the supply of stock to the market continues to fall. Anecdotal evidence does suggest that election uncertainty may be having some impact on the market, but underlying the trends visible in the latest survey is a very real housing crisis which will urgently need to be addressed by the next government," Rubinsohn explained.
In another study, renters may share the same anxiety coming from Rubinsohn, as Daily Star reports that a large number of them feel they won't be able to afford a home. More than 40 percent of renters "have given up hope of ever being able to buy" their own homes and only a small percentage, which is 17 percent, are actually "trying to save" for the downpayment or home deposit, the outlet states, citing the Mintel survey.
Moreover, Jessica Morley, the financial services analyst at Mintel, told the Daily Star that some have looked out for other options.
"For many Brits, home ownership seems like an impossible dream," Morley said. The survey showed that only 5 percent of renters have searched and looked for ways on how they can have "affordable housing schemes like help to buy or shared ownership," notes Daily Star.
Morley further suggested to not continue with such negative outlook. "But these negative attitudes are dangerous for the overall growth prospects of the mortgage market. Those who believe home ownership will never be possible do not pay attention to deals or schemes that could help them take their first step on to the property ladder, " she added.
Even lenders must have their share too, in these trying times of rising prices, as they will also be affected if they do not do their part. "Lenders will need to plan for a potential spike in borrowers getting into payment difficulties following the first interest rate rise. They may wish to consider contacting borrowers with information on how to seek advice as soon as the rise occurs, " explained Morley.
