Property drought is on the way
A PROPERTY drought could cause prices to rise, according to the latest survey by Home.co.uk.
They say the number of homes for sale has hit a record low as vendors still hold back from entering the market. The problem is particularly acute in London and the South East, where stock is now 38% lower than in January 2008.
Annual asking price rises across England and Wales are running at 6.2%, though in Yorkshire the figure is 0.6%.
Doug Shephard, director at Home.co.uk, says buy-to-let is partly to blame: “Landlords effectively remove the stock from the resale market and, in turn, bloat the private rental market. Whilst the aspiration to own a home remains commonplace, it has clearly been dampened.”