Property demand is on the rise following a slight dip during the Brexit months.
Demand for property had seen a slight fall following Brexit, but demand has risen for the first time since the referendum according to a recent survey by the Royal Institution of Chartered Surveyors (RICS).
Lack of New Property to Increase Prices
An increase in demand has highlighted, once again, the lack of new property entering the market.
“Although this is not a new story, it is a significant one having ramifications for both prices and the level of turnover.” Were the thoughts of Simon Rubinsohn, RICS Chief Economist, on the matter.
September saw growth in the number of surveyors reporting an increase in price by 17%. That figure is up on the 13% increase that was seen in August, showing that the spread of property price growth is spreading further across the market.
Property Price Growth Expected to Last
Concerns of a market crash have unravelled, with the concerning lack of property development pushing prices up.
Looking ahead, the RICS survey concludes that firms are expecting widespread growth across the UK for the next three months. Beyond 2016, the expectation is that housing sales – along with prices – will begin to grow firmly throughout 2017.
Property Developers can be increasingly positive about the current state of the property market. Property demand is high and is expected to get even higher over the next 12 months.
Alongside the demand for property, prices are now expected to continue increasing, pushing up the chances of strong property margins for well-placed developments.