Prices Are Rising
A lack of available properties is helping to push up house prices in not just Southampton and surrounding areas but the whole country.
As a result, a the majority of Royal Institution of Chartered Surveyors (RICS) members think prices will continue to rise over the next year which us agents also agree with.
The shrinking supply meant the number of new properties coming to the market fell by a third in June. But with no let-up in demand, all parts of the UK continued to report robust increases in house prices, RICS said.
Respondents are pretty unanimous in once again highlighting the challenge around supply, whether in the sales or rental markets. With demand increasing and supply continuing to falter, a net balance of 83% of surveyors reported an increase. Looking ahead, a net balance of 56% anticipated that prices will continue to increase over the next twelve months!
Tenants & Lettings are seeing the same trend!!
Demand from tenants rose in June, boosting the rental market and pushing up rent costs. A net balance of 60% of surveyors noted a rise in demand, up from 48% in May. But a shortfall in new landlord instructions intensified with a net balance of -32% of surveyors reporting a decline in supply.
Surveyors and agents predicted rental growth would grow slightly as a result, suggesting a 3% rise over the coming twelve months, including in London, where the rental market has bounced back since a RICS assessment earlier in the year.
There were notable sharp rises in Hampshire and the rest of the country according to surveyors and local Estate agents.
Until the supply and demand issue is addressed the issue of house prices are going to continue for many years to come.