A shortage of new homes is expected to push house prices up.
House prices and rental yields will be squeezed upward by a shortage of new homes, experts claim, following the latest production figures from the National House Building Council (NHBC).
Despite various Government initiatives to encourage new building and help first time buyers beat the mortgage famine, the NHBC reports a sharp contraction in public sector residential construction, which fell by 20pc over the year to last month. Meanwhile, private sector production of new homes increased by less than half as much – by 9pc – to bring the total to 7,831 new residences completed in January; little changed on the year before.
Mark Posniak, a director of the mortgage provider Dragonfly Property Finance said: “These latest figures drive home the paralysis at the heart of the property market.
Tracy Kellett, managing director of BDI Home Finders added: “The lack of new homes being built says all you need to know about whether the Government’s initiatives are working. Clearly not is the answer.
“It’s a well-documented fact that there are simply not enough homes for our growing population. The lack of new homes being built is keeping house prices artificially high and causing rents to rise across all sectors.
“For landlords and homeowners, this is a good thing, for aspiring homeowners and tenants, quite the opposite.
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It is important that we share some of the information that we have gathered when handling Real Estate Investments in Australia. A helpful way to others on how they can also be as successful as we are. Now, we have to focus on our mindset and show more compassion for us to be the model for our business success.
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