In the wake of the most recent lockdown, we have seen huge changes in the UK housing market, with house prices soaring as buyers move away from the cities and look for bigger homes with outdoor space. While this is an understandable progression from spending almost 16 months solely within the same four walls, the subsequent rising house prices may lead to greater inequality in the market.
New reports out this week show that the average UK house price has risen to a staggering £336,000 since lockdown – the highest it has ever been. While more affluent households may be able to move despite this rise in prices, for many it will leave them stuck in homes that may no longer suit their needs – especially if further COVID restrictions come into play this winter.
We have spoken at length about the inequality in the housing market, particularly from the perspectives of first-time buyers and low-income households, but this huge increase in costs could see additional households priced out of the market for the first time too. Those looking to move to a larger home to accommodate a growing family and additional needs, who may have been comfortably able to move at the start of the year, could now see themselves unable to afford a property that adequately suits their needs if prices continue to rise.
In turn, this could put additional pressure on the already limited affordable housing infrastructure. If more households who could traditionally afford properties in the UK are turning to affordable housing schemes, this already limited supply will reduce further for the first-time buyers and low-income households who often rely on it the most.
As we have often said, the only way out of the ongoing housing crisis in the UK is simply to build more homes. At Intro Crowd, we are aiming to do just that – by giving qualified investors the opportunity to collectively fund the purchase of strategic land sites in areas of high-housing need. Our experienced team will take these sites through the planning process, and if consent is given, will aim to sell the sites to a residential developer for both traditional and affordable housing.
This article is for educational purposes only and does not constitute investment advice. This article does not amount to an invitation or inducement to buy or sell an investment nor does it solicit any such offer or invitation in any jurisdiction.
In all cases, readers should conduct their own investigation and analysis of the data in the article. Readers are strongly encouraged to seek independent legal and financial advice when considering an investment in strategic land. All statements of opinion and/or belief contained in this article and all views expressed and all projections, forecasts or statements relating to expectations regarding future events represent Intro Crowd’s own assessment and interpretation of information available as at the date of this article.
No responsibility or liability is accepted by Intro Crowd for reliance on the contents of this article.