Why the UK is going through a housing crisis
The UK’s soaring property prices are leading to a massive shortage of rental accommodation, as rents continue to rise at a faster rate than wages.
The National Housing Federation (NHF), which represents over 60,000 landlords, said it had received 6,500 complaints about properties being oversold in the last 24 hours, and warned that the situation was likely to get worse.
“Demand for housing is being driven by rising rents,” said the NHF.
“The government’s housing strategy will not fix this.”
As the market continues to get hotter, we expect prices to increase.
“Rent growth is a factor in the current shortage of homes, as it can be a catalyst for the growth in rents.”
In England and Wales, rents rose 0.2% to a record £1,200 in the month to December, according to figures released on Monday by the National Housing Association (NHA).
In Scotland, rents increased 0.4% to £1.11 per week, and in Northern Ireland, rents jumped 0.3% to an average of £1.,800.
In Scotland the housing shortage has led to a sharp rise in the number of tenants being evicted.
According to the NHA, rents in the capital Edinburgh rose 0,716% to 1,082% of the median income, while rents in Glasgow, a city of 5.5 million, rose 2,632% to 2,897% of median income.
The NHA’s figures show the shortage of rentals in Scotland is the highest in the UK.
It comes as the government is under pressure to bring the price of housing up to the level of rents.
The government is currently considering raising the national minimum wage to £7.25 an hour, up from the current £6.20.
The NHF’s chief executive, Chris Fidler, said: “The UK has had a housing bubble for the past six years, and while there is an economic recovery underway, we are still facing a housing shortage.”
We are seeing the price increase in rents, which are outstripping the value of the property and making renting increasingly unaffordable for people.
“The NHE said the current housing shortage was driven by a “huge oversupply of properties”.”
The shortage of available housing has contributed to an increase in the demand for rental accommodation across the UK, with landlords demanding more and more properties,” the NHI said.”
It is likely that the UK’s housing crisis will worsen before it is solved.
“In many ways the UK housing market is a perfect storm, as the supply of affordable homes has been significantly constrained by a massive oversupplying of properties.”
The oversupplied supply of housing has led directly to rising rents and an increasing shortage of suitable rental accommodation.””
If you rent to someone on a lower income, you can be squeezed out of the market by an oversupplemented rental market.””
If you are a renter and your rental income is at the low end of the scale, you may have to rent to a family member who is making £20,000 per year.”
If you rent to someone on a lower income, you can be squeezed out of the market by an oversupplemented rental market.
“The NHI also warned that more affordable housing would be a challenge.”
A huge number of homes are currently underutilised in Scotland, and as more people become renters, the number and quality of homes being offered for rent is likely to increase,” the group said.