RICS warns about lack of housing as majority of surveyors expect prices to
The Royal Institute of Chartered Surveyors (RICS) has warned that a lack of available housing could spell trouble for buyers and renters, according to reuters.com.
Simon Rubinsohn, RICS's chief economist explained: "If there is not a meaningful increase in new homes, the likelihood is that prices, and for that matter rents, will continue to push upwards, making the cost of shelter ever more unaffordable."
RICS estimates that house prices will rise by three per cent in 2014 and by nearly five per cent over the next five years.
Research from the institute found that 59 per cent of surveyors expect house values to increase over the next three months - a 14 year high for UK housing expectations, reports theguardian.com.
Furthermore, RICS also found that the number of house sales have picked up compared with last year, as each surveyor sold an average of 20 homes each in the three months to November. During the same time last year, an average of 15 per surveyor were sold.
The predictions that house prices will continue to rise is further evidence that the market has recovered this year. This recovery has mostly been driven by government schemes such as Help to Buy, which has helped more first time buyers get on the market and Funding for Lending, which as made mortgages more widely available.