Real estate professionals expect housing shortage to worsen
New research by Engen Group reveals that 64% of real estate professionals in the UK expect the housing shortage to worsen over the next five years and only 14% expect it to improve.
The outlook is even bleaker in London and the South East, with almost three quarters (74%) predicting it will get worse and just 8% expecting it to improve.
The research suggests that this trend is being driven by several factors.
A quarter believe that it will become even harder to secure the credit to buy homes, whilst 22% believe that economic factors which will lead to an increase in people moving to the region to find work.
In addition older people not being prepared to downsize (22%); councils finding it hard to build the number of homes needed (22%) and developers not putting enough focus on affordable housing as part of their plans (10%) are also seen as factors.
As a result of the housing crisis, 62% of respondents expect planning constraints for new housing to be relaxed over the next ten years.
There was a positive reaction from 68% of real estate professionals who felt that government plans aimed at making owning a home more affordable were effective.
This includes the First Homes scheme and the renewal of the Affordable Homes Programme.
Just 28% felt that such schemes were ineffective.
The research also highlights that 48% of real estate professionals also believe that Suitable Alternative Natural Greenspace (SANGs) will have a positive impact on the rate of property development in their surrounding areas.
Graeme Boiardini, chief executive of Engen Group, said: “Our research suggests the UK’s housing crisis is likely to get worse before it gets better.
“There are a number of factors at play which make it a complex problem to solve even though there several government and local council initiatives aimed at improving the planning process and boosting affordable housing.”