Economists are predicting that house prices will start to rise significantly with the Conservative win in the General Election. A significant rise in already inflated property prices will see more potential first-time buyers unable to get on the property ladder.
The Conservatives propose using the Housing Bill to introduce measures to tackle the housing supply problem. They will offer discounted prices for those wanting to buy housing association properties and the discounts will be funded by the sale of the high value local authority properties.
It will be interesting to see how the extension to the right to buy for housing association properties will work in practice and if there will be any push-back from housing associations - bearing in mind they are privately owned, rather than Government owned. The proof will remain to be see as to whether or not the number of first time homeowners in the UK increases once the Housing Bill is enacted.
UK house prices are forecast to rise by 25% over the next five years and become “ever more unaffordable”, largely because of an acute shortage of homes for sale, a leading property body has warned.