Real estate professionals expect housing shortage to worsen

Jake Carter

February 24, 2020

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.”

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