Property market trends for 2014
Rents are increasing – investment properties in the north east
Almost every marketplace is driven by the supply / demand, even in the property market. Properties in the north east are a good example of this, simply put the UK is an island with only so much land where we can build. The population is not getting any smaller but increasing, so we all need somewhere to live. Hence due to the current credit crunch it is becoming increasingly difficult to buy properties and so the majority of people are renting. There is more demand than supply in the present climate which in turn drives rents up.
If you look at the basic facts, it is estimated that there is a housing shortage of 400-500,000 properties in the UK. As a matter of fact the Joseph Rowntree Organisation thinks this is just getting worse and will increase to 1.1 million by 2022, this effects the whole of the UK, from London to the North East. In 2006 160,000 properties were built and in 2007 approximately 150,000, which is clearly not in line with Government targets of 240,000 per annum. With the credit crunch the property development sector has been greatly impacted due to the finance not being available. Furthermore local planners are making life more difficult for developers and it is getting harder each and every year to build anything!
To conclude although the economists are not 100% agreed on the property price trends (besides the obvious South). Rental demand is at its highest and rent are on the rise.
About the author
Our team has over 26 years of experience with over 1000 quick property sale deals completed, we will be publishing UK property news and trends and other related news on this blog at regular intervals.
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