Supply shortage hitting sales and lettings and may worsen

Are you looking to rent or buy in the future? It may be harder than it used to be as a result of a supply shortage according to a recent RICS survey.

Shortages are occurring not only in residential sales but also in the lettings market. Do you feel the government is sending mixed signals to the housing market? The survey showed that there were more buyers being registered. However, respondents felt landlords were likely to decrease portfolios in the next year.

While surveyor activity decreased, sales were expected to increase according to responders to the RICS survey. Whilst some credit can be given to ministers for changing the state of housing, however, a lot more can be done to prevent punitive measures against small landlords.

Key Takeaways:

  • Both residential and lettings markets suffering from a supply shortage.
  • Lettings set to worsen as new mortgage interest relief changes kick in from April.
  • RICS Survey found there were 5% more surveyors registering new buyers in January, the softest reading since August 2016.
  • 28% more respondents said landlords were likely to decrease portfolio size in next 12 months.

Key Quote:

"Both the residential and lettings markets are suffering from a supply shortage and the latter will worsen as the new mortgage interest relief changes start to bite from April, RICS has warned."

Read the full article:

http://www.propertyindustryeye.com/supply-shortage-hitting-sales-and-lettings-and-may-worsen-rics/?utm_content=buffer4de32&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

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