Panic Buying and Homes Shortage Could Lead to New Property Bubble Warns Living Residential

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Industry experts warn of next property crisis as house prices rise uncontrollably

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The truth is that a lack of supply is killing the market, there are buyers out there, we just need to see the construction industry granted more planning so that the stock levels improve.

It's no secret that housing prices are on the increase, but unlike previous upturns in the market, this particular rise is more to do with what the government isn't doing as opposed to doing.

The lack of building in the UK housing market at the moment means that less and less properties are becoming available to buy or let, when you pair this with the fact that the average estate agents are operating at a 6-year high in terms of sales it is clear that panic buying is in full swing.

This dangerous, nationwide epidemic could lead to a new property bubble, where house prices go so high that there becomes a monopoly of who can and can’t buy, a move which would certainly rule out first time buyers, those with poor credit history or simply those who can’t provide a large enough deposit.

It is thought that the radical new schemes introduced by the government such as the ‘help to buy’ scheme are partly to blame, the money spent on projects like this have taken away from construction and as former chancellor of the exchequer, Lord Lamont said earlier in the week: “The problem will only grow. What will happen is that the demand is increased quickly through measures like help to buy, but supply can only increase slowly.”

The strain on the property market is most evident in the capital where, according to property website Rightmove, the average asking price of a London residential property has risen by nearly £80,000 to around £592,000.

In the three months to April around 26% of all chartered surveyors reported increased agreed sales and the average house price rose 8.5% during the same period, these statistics were highlighted as a result of figures from the Royal Institute of Chartered Surveyors.

It is also believed that estate agents are seeing as many as ten potential buyers for each property, especially for the types of homes which are in limited supply (two and three bedroom),

Jason Werter, Managing Director of Living Residential said: “Prices are on the increase, there’s no doubt about that, the plain truth is that we are seeing more and more panic buyers.

“There is a real danger that we could find ourselves in another property bubble where the minority seize control of the market and build large property portfolios whilst first time buyers are left with no chance of making a sale.

“The truth is that a lack of supply is killing the market, there are buyers out there, we just need to see the construction industry granted more planning so that the stock levels improve.”

About Living Residential:

Living Residential is an award winning estate agency who specialise in all types of residential properties located in Central, North and North-West London. With specialist staff well versed to handle enquiries about residential sales, lettings, management and investments, they offer both a professional and knowledgeable service.

Living Residential are affiliated members of the Ombudsman for Estate Agents, NALS, UKARLA and the Tenancy Deposit Scheme. They were also recognised for their excellent customer service as voted for by their clients, and in the last 12 months have been voted as one of the top three letting agents in London.

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