A recent report by the ministry of Land in the UK has shown that the price of real estate will rise over the years. This is according to the analysis done by members of the Royal Institution Charted Surveyors. This is because the demand rate for the built home, mainly in cities, exceeds the demand.
When this happens, the prices of other products will fall by a higher percentage. Experts in the field of economy predict that. However, the chief economist at RICS said they were not sure if the rentals or the total house price had risen, a report by Forbes.
It is different from what is experienced in the United States. Companies failed to return to their offices in New York City; hence many buildings are empty. Office tenants have to reduce monthly fees to attract tenants.
A survey conducted in June showed that the supply would falter for some period before the balance. IN the coming year, 56% of researchers have predicted a rise in price for rental and houses. Although the costs of the rural house are much cheaper, the rate has increased compared to standard time.
IN June, businesses went back to regular routines. Other companies opened up their offices, and some people have to live near to their company. This led to a ‘first come first serve’ deal where all the real estate was occupied. AT this moment, office landlords have found an opportunity to collect much profit from their investments. From the report, 60% of members realized a rise in demand during June.
Real estate investors stopped many projects when the pandemic hit the country. Most of the skyscrapers and houses under construction were suspended. Some have started, and others are yet to kick off. The other project might not continue because investors have to spend the project money. All these factors have led to a decline in supply by 32%, a report by Reuters.
Rental house fees, on the other hand, will rise for the next 12 months. It’s not the UK alone, and even London has experienced the same shoot in the monthly fee. The rental market is challenging due to new businesses that have been set up.
Following the RICC survey, Wales, Northern Ireland, and Yorkshire were most affected by real estate prices. One of the surveyors from Yorkshire said June was their busiest month of sales. Almost all the properties from food, assets, and households were high. Also, the stamp duty from the government had risen by a certain percentage.
In London, only large houses are in high demand. The rate of the market is going down monthly. Rentals and flats have maintained their prices since there is no such force on all sides. The government of London helped in increasing the supply of cheap and affordable Housing.
A government spokesman in the ministry of Housing speaks to BBC about the nation’s plans. He said Ministry of Housing officials have always worked hard to ensure a balanced economy between the supply and demand market. Each year, they have to ensure there are new homes at a low price.
Also, any foreigners in need of a home are taken care of immediately. Last year, the ministry of Housing offered 243000 complete homes to people. This is a new record that has existed for almost 30 years. The country has been selling real estate for seven years in Arrow with a minor increase. Furthermore, the government accelerated the issue of ownership transfers from one person to another. This is to ensure there are reduced cases over land issues.