After a sustained downward plunge for many months now, statistical indices are showing that the UK properties market is stabilizing gradually – at least in the short term. I am particularly delighted at the latest figures churned out by the National Association of Estate Agent’s (NAEA) just a few days ago.
These new figures show that there is still hope in the industry, and that new home buyers would after all, find houses that match their pockets. The February report from the NAEA shows a year on year rise of 25% in the level of available housing stock. The report also shows that the percentage of sales made to first time buyers also increased slightly from 24% in January to 25% in February. This is absolutely great!
Be that as it may, the long term projections in respect to supply meeting demand as far as housing is concerned is not too bright. I am greatly disturbed about the government’s attitude towards housing policies. What is going to happen to the current labour force when they grow old; how many households would be available for social housing in a few years from now? Many questions begging for answers…
Frankly speaking, the answers are not too encouraging. A recent report shows that even under good economic circumstances – as compared to what we are seeing now, an additional 550,000 households will need social housing by 2025. The report says that without a new housing policy, this demand will not be met.
If around 4.5 million people are currently waiting for social housing, and only some 1.8 million households, equivalent to 8% of all English households can be available yearly, then the situation is quite critical. That would mean a staggering balance of 2.7 million people waiting on the queue; I tell you, if the government doesn’t change or modify its housing policy soonest, we may be facing an unprecedented housing crisis in a few years time from now.
Obviously, a serious gap looms between housing supply and demand. Our ageing population and rising expectations for living standards in the UK are going to drive up demand but if there’s no change in housing policy it will seriously hold back supply. I sincerely hope someone is listening!
