THE housing market is in crisis as home ownership tumbles and house prices soar, a study warns today.
Huge deposits, high house prices and strict lending criteria have sent home ownership into decline, according to the National Housing Federation.
The federation has warned the housing market will be plunged into an unprecedented crisis, forecasting steep rises in the private rental sector and a house-price boom.
The federation, which represents housing associations, blamed the bleak outlook on an under-supply of homes in the UK.
The stark warning comes after the Home Builders Federation said thousands of new homes needed to be built for the thousands of Welsh people affected by the housing sector's problems.
Estate agents in Wales say the country's housing market is suffering from a shortage of new homes, with many first-time buyers still failing to get on the property ladder.
David Orr, chief executive of the National Housing Federation, said: "With home ownership in decline, rents rising rapidly and social housing waiting lists at a record high, it's time to face up to the fact that we have a totally dysfunctional housing market. Home ownership is increasingly becoming the preserve of the wealthy and, in parts of the country like London, the very wealthy.
"And for the millions locked out of the property market, the options are becoming increasingly limited as demand sends rents rising sharply and social homes waiting lists remain at record levels."
Earlier this year, the Home Builders Federation warned that thousands of new homes needed to be built for the thousands of people affected by the housing sector's problems.
It estimates there are 100,000 Welsh families on housing waiting lists, with first-time buyers needing an average deposit of around £30,000.
According to the HBF, only 918 new homes were registered in the first three months of the year, compared to 1,120 last year – despite rises in housebuilding across the UK.
About 4.5 million people across the UK are stuck on social housing waiting lists – but only those in the most desperate of circumstances have a realistic chance of a home.
More government investment in affordable housing would stimulate a wider, faster economic recovery and help fix our broken housing markets, according to the NHF.
Mr Orr said: "At the heart of this crisis is a chronic shortage of new homes. Despite the overwhelming need to increase supply, house-building has slumped to a 90-year low, plunging the country deeper into the mire.
"Ministers need to make unused public land available to housing associations, local authorities must assess the level of housing need in their area, and housing has to be finally treated as a top political priority."
Derek Richardson is the Welsh spokesman for the Association of Residential Letting Agents and director of Cardiff estate agent Squarefoot.
He said that while the housing market has been active in buy-to-let and high-end sectors, the lack of first-time buyers has had a significant impact.
"The whole market is driven by first-time buyers – it's driven from the bottom," he said. "There is a whole chain effect that goes to the top, but it all starts with the first-time buyers.
"The amount of deposits required from first-time buyers is beyond the reach of most people. When you're asking for a young couple to come up with a £40,000 deposit, they just can't get that type of money.
"Until they get into the market, the whole chain has difficulty."
Kelvin Francis, of Kelvin Francis estate agents of Cardiff, agreed there was a shortage in new properties, but said homes for resale were in good supply. He believes rising rental prices will encourage more people to buy property in the future.
"The rental markets are very buoyant, and I think people are realising they have lost money, unlike with a mortgage. I think people are realising that, and would far rather buy than rent as rents go up," Mr Francis said.
No hay comentarios:
Publicar un comentario