FAQ List
Is the supply of properties keeping up with demand?
No because the UK needs to annually build 50,000 properties than they currently build to keep up with the demand of the rising population.As the UK population rises there are also major problems caused by the shortage of land on which to build houses. Just look at your local area and assess how many green or brown spaces could be quickly utilised for housing? Of course don’t forget that even when you find a space there is the challenge of successfully gaining planning permission.
The Government have identified this major problem and hence the NHPAU has been formed to come up with solutions. The only solution will be the building of many smaller, affordable and maybe less desirable properties, mostly on flood planes and brown field sites. Even more reason to go out and buy good sized houses and apartments whilst they are currently affordable.
Will the demand for properties ever decrease?
NO There are many reasons why demand for property will continue to grow.- People are living longer
- People are more affluent and for many reasons own more than one property
- In 2007 180,000 of the 1,300,000 homes were bought by buy to let investors
- Many investment properties remain empty and are simply kept for capital growth
- Immigration is bringing huge numbers of people into the UK every year
- Divorce. In 2005 out of 1000 married couples there were 13 divorces.
The impact of these statistics is that many adults and their families require more than one property to live in. This has been a major driver of apartment purchasing and letting. If demand continues to exceed supply then the capital growth of property is assured.