The mounting supply-demand imbalance in the market is driving up both property prices and rents across many parts of the country, with new research suggesting that the average price of a residential property Britain could reach a whopping £300,000 by the end of the year, if price growth in the property market continues at its existing pace.
Rightmove’s latest House Price Index revealed that the average price of a home hit a new national high of £294,834 in September, owed mainly to a lack of housing stock coming on to the market.
Miles Shipside (left), of Rightmove, commented, “High demand, lack of suitable supply, and increasingly stretched affordability are leading to some extremes in market forces in different sectors and parts of the country.”
The National Housing Federation estimated that 974,000 new homes were needed between 2011 and 2014 to meet demand, and in reality that figures looks likely to rise.
Housing Minister Brandon Lewis said this week that the Government is determined to deliver 1 million new homes during the course of this Parliament to tackle the problem.
Lewis revealed the target during an interview on the BBC’s Inside Out programme which was aired on Monday, 21 September, on BBC 1, and is still available to watch on BBC iPlayer.
Talking about the Government’s house building plan, Lewis told BBC Inside Out, “By the end of this Parliament , success I think would mean that we have seen a build in total of something like a million homes.”