The UK housing market is showing signs of strength with rising house prices and increased demand for homes, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey. Most parts of the country are experiencing growth, with the West Midlands, South West, and East Anglia lagging behind. With borrowing costs expected to decrease, prices are anticipated to continue rising in the coming year.
However, renters in the UK are facing challenges as the supply of rental properties is dwindling. Demand from tenants is increasing while the number of available properties is decreasing, possibly due to landlords listing their properties for sale ahead of potential capital gains tax changes. This imbalance in supply and demand is resulting in higher rents and difficulties finding rental properties.
The looming affordability crisis for renters has already led to a rise in rough sleeping, with homelessness charities warning of a potential return to record levels unless the government addresses a £1bn shortfall in frontline funding. The government’s renters’ rights bill aims to improve standards and protections for tenants, but the reforms may not be enough to address the core issue of increasing supply and affordability for tenants.
These developments in the UK housing market highlight the need for a comprehensive approach to address the challenges faced by both homeowners and renters in the current market environment.
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