Housing shortage holding back UK property market

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Industry experts have warned a supply shortage of residential properties is holding back the UK housing market…

A new survey carried out by conveyancing services firm myhomemove has revealed the vast majority of property professionals believe the UK housing market is being hindered by a shortage of stock.

The data showed over 90 per cent of those surveyed said the market was being held back. Additionally, 47 per cent said the shortage of homes available to buy was the reason for this.

The survey also revealed that 24 per cent of respondents thought a lack of mortgage availability was hindering the market, while 16 per cent blamed a lack of new build properties.

Those questioned showed strong support for extending Help to Buy schemes for new build purchases to 2020, with a total of 80 per cent for the policy.

Furthermore, 65 per cent showed support for the Conservatives starter homes scheme, which was put forward in its election manifesto. Only three per cent outright opposed it.

When asked about other housing policies, some 42 per cent said they supported reducing inheritance tax on the family home, while 38 per cent opposed it. A total of 38 per cent said they believed the target of building 200,000 new homes is achievable.

Additionally 43 per cent said the Right to Buy scheme for housing association tenants was realistic, while 27 per cent said they were unsure. However, there was uncertainty surrounding the implementation of Right to Build, with only 26 per cent thinking the policy could be achieved, but 41 per cent unsure.

Doug Crawford, chief executive officer of myhomemove, said: “Property professionals are clearly concerned about the obstacles that are holding back property transaction numbers.

“The good news is that the decisive election result could provide a confidence boost to consumers that will mean more properties are put on the market.

“The main housing policies outlined by the new Conservative Government in its manifesto are, for the most part, popular within the industry.

“The question now is whether the Government can deliver on its promises and how quickly it can do so.

“Some policies, like extending Help to Buy, are far simpler to deliver than others, like the proposed Right-to-Build scheme.

“This will undoubtedly be a big topic of debate at our conference, just one week before the Government sets its policy agenda in the Queen’s Speech.”

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