Out-Law News 1 min. read
09 Oct 2012, 4:27 pm
Developers still face many challenges in terms of finance and land supply as house building is still only at three-quarters of the level it was between 2000 and 2007, the report said, according to the Estates Gazette.
Because of the imbalance in supply and demand, the prices on the limited housing stock will be pushed up and a growing proportion of households will be unable to own homes. The higher pace of rental growth will make the private rented sector an increasingly attractive investment opportunity, the research showed.
London has the highest concentration of renters in the UK and private renting in the capital has doubled in the last 20 years. A sharp rise in home prices, lending constraints, lifestyle changes and migration have all been contributory factors, the report said.
“Decision makers have to question whether London’s potential to maintain its position as a world city is being curtailed by such a limited supply of housing stock. The answer can only be yes," said Cluttons head of residential consultancy division Julian Briant.
“Despite this, a growing and vibrant London offers a wide range of residential opportunities for both investors and developers. Small private landlords will continue to play an important role in the capital, including creating more units from the existing stock," he said.
“However, the housing challenge we face needs radical solutions. Long term demand from highly qualified professionals at different stages of their careers and family lives presents a clear range of opportunities for investors taking a long view,” he said.
“Housing can lead the recovery," said Tony Pidgley, chairman of property company Berkeley Group. "The impact of delivering the shortfall in London alone would be 80,000 new jobs. But there is simply not enough urgency. We need clear government policy which encourages investment from home and aboard. London must welcome investors, not penalise them, if we want growth and prosperity,” he said.
