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The UK's Governments Housing Strategy released on Monday has sparked much controversy this week and it certainly seems to have united the private rented sector, social landlords, the pensions sector and the construction industry.
The prospects of allowing UK property values to fall further and the impact on housing development is horrific, if developers do not build due to the costs of building exceeding sale prices then supply of housing will diminish at a time when our population is rapidly increasing. The result will be pent up demand leading to yet another boom and bust scenario, something that no person in their right mind really wants. Such factors could also lead to an even greater bubble in rents being charged, thus resulting in further social and economic issues in the future.
Reducing supply of property in relation to demand may seem good for landlords in that rents will rise quickly and values will follow as soon as financing is more readily available, however, the cost to the infrastructure of the Country in terms of over-crowding in homes and homelessness could be catastrophic. What we need is balance between supply & demand, steady growth and confidence in the market.
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Investment in Student accommodation in the UK – LINK
Investment in commercial storage units in the UK - LINK
Both the above investments are suitable investments to be placed into a SIPP (Self Invested Personal Pension)
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