House prices in Britain could possibly increase over the next five years by a quarter, according to a report that was released on Wednesday. The report found that the number of houses on sale has dropped to its lowest level since 1978 when records began.
The Royal Institution of Chartered Surveyors has warned of a rather acute shortage of supply since the ageing population of home owners in Britain is moving less frequently. The population has, instead, been focusing on helping their offspring in moving upwards on the housing ladder.
The organization found that each surveyor recorded only 52 properties for sale on the books in the month of May. This was the lowest monthly figure that has been registered in almost forty years.
Chief economist at the Royal Institution of Chartered Surveyors Simon Rubinsohn, states that the drop in supplies was part of an evident trend that was going on for almost two years. The diminishing supplies bewildered expectations of a bounce for the property sales market post election.
Simon Rubinsohn stated that with the demand for homes still on the rise, prices should most probably resume an upward trajectory after having slowed down before the election. This rise in demand for homes is partly attributed to favorable government policies such as the Help to Buy scheme.
The findings by the Royal Institute of Chartered Surveyors will deepen the debate on whether enough number of houses are being constructed to accommodate the growing population in Britain.
Industry experts have said that people who are ageing in better health continue to stay in their homes for a longer period of time, which results in fewer number of family homes going on the market.