House prices to keep outstripping wages, says Rics - The Week UK

House prices to keep outstripping wages, says Rics – The Week UK

House prices in the UK are growing faster than wages, crippling buyers’ ability to buy new properties. While values are continuing to rise, there is evidence that growth is slowing. However, it just means prices aren’t rising as fast as they were before; 17% in the last month versus 22% recording price increases in April. Sales are also slowing along with buyer inquiries. Those have fallen for the 15th consecutive month. UK inflation is the worst it’s been in years and wages simply cannot keep up with prices.

Key Takeaways:

More than 25% of individuals will be living in rented accommodations due to the changing market.
Renting is more popular due to higher prices of homes and lower wags.
Housing prices are also higher as there is not an adequate inventory of affordable homes for sale.

“sheer lack of supply continues to support prices for the time being”, while members predicted prices would increase over the coming 12 months and by an average of 3.5 per cent for the next five years.”