Why The Government Falling Short Of Their Housing Targets Is Beneficial
Last updated 15/02/2019
Whether you are a follower of politics or not you may well have seen certain high office politicians caught up in some uncomfortable television interviews during the last year concerning housing shortages. The upshot is that much of what was promised in certain quarters regarding meeting the government’s targets for new homes has still yet to materialise.
Profiting from bad news
It is no secret that the UK is currently experiencing a housing shortage, one that is predicted to remain unresolved until at least 2030 even if the government’s recommended new housing quotas are fulfilled. Many of the new privately funded projects that are flourishing in many of the country’s major cities are actually build-to-rent and these are attracting large numbers of investors. It doesn’t take rocket science to work out that fewer houses mean increased demand and that is only likely to send rents in one direction; upwards!
Property shortages and house values
The same argument can logically be applied to house values and the cost of buying a new house or apartment. With a shortfall in available properties, competition from buyers is also likely to be reflected in rising values too. In fact, this has often been cited as at least one of the reasons why property in the UK has always increased in value over time. With an ever-increasing population, the demand has historically always outstripped the supply and looks set to continue doing so.
Striking while the iron is hot
While some pundits have jokingly remarked that Brexit will probably be identified as the cause of virtually any political or economic issue that transpires in the next few years there may currently be an element of truth in the idea. The fact is that the uncertainty surrounding the logistics of the UK's impending withdrawal from the EU may be having a dampening effect on residential property price growth. The good news is, however, that it isn’t likely to last long once the deed is done. Investors who make a move now could potentially find themselves experiencing significant growth on their astute investments later on.
As is so often the case in a capitalist society, the private sector looks set to take up the slack and fill the void that Whitehall seems incapable of resolving. While such endeavours on the part of developers and private investors are purely profit driven, they are far more likely to provide the working solutions that so many are seeking to address.
Working with a company that can join up the dots
A company that is able to bring together investors, developers and those with the funding to make it all happen will play a crucial role in alleviating one of the country’s most serious social issues.
Although both local and national government bodies have lifted some of the more restrictive obstacles that have hampered development in the past, there is still a long to go. This too can only be good news for current and potential investors in property development.
Please note, this blog post is not to be considered as investment advice. We recommend you seek independent financial advice and conduct your own due diligence before making any investment.