News: UK housing shortage at crisis point

Mon, 10 Sep 07

Landmark Developments highlight how the UK’s housing shortage has now reached a critical level...

According to a recent report from the National Housing Federation (NHF), house prices are expected to continue rising, with the average property price in England set to break the £300,000 barrier within five years. NHF‘s research suggests average prices are now 11 times higher than the average salary at £206,594.

Research by Oxford Economics for the report found that, since the Labour Government came to power, house prices have risen by 156% while wages have risen by just 35%.  The study goes on to predict that prices are likely to rise by a further 40% in the next few years and by the time of the 2012 Olympics, the average property price in London will be over the £500,000 mark; the current London average property price is £318,864.

With price inflation outpacing wage increases, one may ask why prices are predicted to keep rising?  The problem seems to be a simple case of demand over supply.  Local Government figures show that there is demand for 210,000 homes a year but only 165,000 are built.  As a result, the NHF says that a housing crash is unlikely and is urging the government to deliver on its promise to build three million new homes by 2020, including 70,000 affordable homes a year by 2011.

The problem is at it severest in the South East, especially Hampshire which has the highest home build target of 6,030 new homes every year until 2021. Development constraints in Hampshire mean that an unequal share of those additional houses will be built in south-east Hampshire, including Fareham.

A great time to invest

Landmark Developments identifies prime, strategic land that has not yet achieved planning permission.  If such a site meets our exact standards and has potential for development within the medium to long term we would purchase the land and offer various plots to our clients. Landmark Developments retain a proportion of the land for our investment portfolio, ensuring our interests are aligned with those of our clients.

Landmark Developments ensure the strictest of criteria are met when considering any land investment.  Any land considered has to be in an area of high demand for new housing as planning permission is only granted in response to a genuine need for housing.  Any sites considered have to be close to existing development as it is extremely unlikely that any planning office would grant planning for a large or even small scale development on a parcel that is in the middle of a field itself.  This also ensures good road access and amenities are available.

As far as land speculating is concerned, it is obvious that the South East would hold the most potential as this is where the problem is at its severest.  As such we are pleased to offer phase II of our flagship site in Fareham, Hampshire. Prices start as low as £5,475 per plot and there are approximately 80 plots available within this phase.

This is a genuine opportunity to take advantage of the current housing shortage within the UK.  For more information please visit our website www.ldag.net or call (+44) 0870 224 1819 to speak to a trained advisor who can deal with any queries you may have.  

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