The UK housing market has been facing a massive shortage of available properties for sale and or rent for years, and the government is currently working to resolve the issue. According to the latest housing data, the country is now facing a shortage of more than 1.7 million rental properties. Factors connected to potentially nearing a solution include stamp duty on second homes, which was introduced just months ago, and a scheme to motivate build to rent builders.

Young people looking to enter the property market and find space on the first rung of the ladder currently face significant challenges. Increasing house prices of not only property within the city limits of London, but also outside the city are rising with no real end in sight. This has and continues to make it difficult for young people with starter incomes to afford a first home. Not only are young people living with mum and dad for longer periods of time, they are also using rental property to transition into permanent home.

Now, first time property owners are facing even more of a challenge due to the significant shortage of available properties. The government is currently fielding many ideas including ideas from the Royal Institution of Chartered Surveyors. The group has suggested abolishing the stamp duty charge on purchase of second homes to increase incentive.

Many buy to rent purchasers followed through on investments early in the year and have now fallen off in demand. Almost 60% of estate agents have noticed a fall in sales of these types of properties since the month of May.

Jeremy Blackburn with Rics commented on the latest data regarding rental property shortage, saying: “The private rented sector became a scape goat under the previous prime minister, and because of that it suffered. Yet with increasingly unaffordable house prices, the majority of British households will be relying on the rental sector in the future.”

Blackburn added: “We must ensure that it is fit for purpose, and the government must put in place the measures that will allow the rental sector to thrive. Any restrictions on supply will push up rents, marginalising those members of society who are already struggling.”