Red warning flags have been raised regarding the current state of sales in the UK housing market. According to a report from telegraph.com, prices of houses may rise by as much as 25 percent in the next five years. The volume of sales of homes have fallen to its lowest level in 37 years.
The group that is sounding the warning bells is the Royal Institution of Chartered Surveyors (RICS), who is predicting an "acute shortage of supply" of homes available in the market. This is reportedly due to the aging population of homeowners in the country, who move less frequently and instead opt to help their offspring into the housing market.
RICS Chief Economist Simon Rubinsohn said that the falling supply was already in effect for the last two years. At the same time, demands for homes are still increasing, buoyed by government programs such as the Help to Buy scheme.
Rubinsohn added, as reported on thisismoney.co.uk, "There had been some hope that the removal of political uncertainty would encourage more properties onto the market but the initial indications are that this is not proving to be the case."
Only a few areas in the UK are showing positive signs of bucking the trend such as Scotland, where number of home sales has risen. Meanwhile, the cost of a home in London has seen an upward trend for the last two months. Also showing stronger prices is the North West.
There is still hope in the air, according to a report from theguardian.com. The RICS report showed that the removal of the socialist political spectre over the country, as a result of the last elections, would help in furthering optimism and trust in the market for sellers and their owned properties. In the end, the market may reportedly be able to correct itself.
