HOUSES prices will continue to soar for many more months due to a crisis in housing supply, a leading property association has warned.
New figures released today (Monday) show the average cost of a home in July is £369,968 – the sixth month in a row it has hit a record high.
And despite the cost of living crisis the National Association of Property Buyers (NAPB), said there is no sign of the rise slowing down.
Spokesman Jonathan Rolande said: “These price rises are being driven by a chronic lack of supply across the housing market.
“Wherever you look; north, south, east or west there is a mismatch between demand and supply and this is pushing prices ever higher at a time where the majority have less in their pockets.
“These are truly remarkable times for the market and despite many predictions of a price crash the reality is we will probably see rises in house prices for several months to come.
“The only solution to this issue is to address the lack of available and affordable housing as fast as we can.
“That’s why the Government should make this one of its main priorities because, otherwise, a whole generation faces being unable to own their home unless we get a grip on this crisis.
“This isn’t just impacting house prices. Rents are now being pushed to sky high rates in all parts of the UK with some tenants even bidding above and beyond the monthly asking price to land a property they want. We can’t carry on like this, especially with the misery that’s coming down the line this Winter with hiked fuel bills.”
Mr Rolande’s comments come in the wake of an announcement by the property website, RightMove.
A new report said that the average cost of a home in July is £369,968, up £1,354 month-on month, Rightmove said.
Prices are rising despite the squeeze on household finances, the report added.
The increase is fuelled by more people wanting to move house when there are fewer properties for sale – 40% down on 2019.
Rightmove’s Tim Bannister said: “With such an imbalance remaining between supply and demand, prices look underpinned.”
Meanwhile, estate agent Hamptons said the average monthly rent on a newly let property in June was £1,163, almost £100 up from £1,069 a year earlier.
