Blog
26th June 2015

Housing Market in Supply Crisis as Homes for Sale Plunge to Lowest Level for 37 Years

Housing Market in Supply Crisis as Homes for Sale Plunge to Lowest Level for 37 Years

The number of houses up for sale has fallen to the lowest level since 1978, despite chartered surveyors’ expectations of a rise following the general election. This lack of supply is pushing house prices up and they are set to increase by 25% by the year 2020. According to the Royal Institution of Chartered Surveyors, the number of properties on the market has plummeted for 4 consecutive months and there has been no noticeable increase in numbers since the end of 2013.

Regional Trends

London and the North East have experienced the largest drop; whereas Scotland is the only region in the UK where numbers have risen. Whilst supply is diminishing, demand is certainly still prevalent as 10 out of the 12 regions covered report an increase in enquiries. It is only Wales and the South East that remain unchanged in terms of buyer interest. When it comes to house prices the South West, East Anglia, North West and Northern Ireland all account for the quickest price hikes for the last 3 months.

General Election Fails to Inspire

Before the general election, various political uncertainties meant that many people were put off buying a property. It was hoped that these would be removed after the general election and that more people would be encouraged on to the property market. This has not been the case so far though and as a result house prices are soaring. The boost that the market so desperately needs doesn’t look to be happening anytime soon either.

Wellesley & Co P2P Lending Platform

Here at Wellesley & Co we offer a specialist ‘asset-backed’ lending platform. The assets that the loans are secured against are mainly, but not exclusively, residential properties. Therefore, Wellesley is able to offer you a property investment without the added costs of owning a property. It’s important to note, investment via Wellesley & Co involves lending to companies or individuals and for that reason your capital is at risk if a borrower fails to repay the loan. Peer-to-Peer Lending is not covered by the Financial Services Compensation Scheme.

Bear in mind

Wellesley Property Bond

  • The Wellesley Property Bond has a fixed rate and duration.
  • The Wellesley Property Bond is an ISA eligible investment, allowing you to earn tax free interest on your investment. Please note, tax allowances and the tax efficient benefit of ISAs could change in the future.

Your capital is at risk and interest payments are not guaranteed. Investment in any Wellesley Property Bonds are not covered by the Financial Services Compensation Scheme (FSCS). In the event of a loan default or if Wellesley Secured Finance Plc becomes insolvent, you may lose some or all of your investment, including interest payments due. If you are in any doubt about making an investment or do not fully understand the risks, you are strongly recommended to consult an independent professional financial adviser before you subscribe.

Wellesley is the singular name for the following collective of companies, Wellesley Group Limited (09811856), Wellesley & Co Limited (07981279) and Wellesley Finance Plc (08331511). Wellesley Secured Finance Plc was established as a special purpose vehicle for the sole purpose of issuing asset backed securities and is not part of Wellesley Group.

The information contained in this website has been approved as a financial promotion for UK publication by Wellesley & Co Limited (FRN 631197) who is authorised and regulated by the Financial Conduct Authority (FCA). Wellesley Property Bonds are issued by Wellesley Secured Finance Plc (the Issuer) and is not authorised or regulated by the FCA.

Wellesley & Co Limited and Wellesley Finance Plc are registered in England and Wales and their registered office and trading address is at St Albans House, 57/59 Haymarket, London SW1Y 4QX. The registered address for Wellesley Secured Finance Plc is at 1 Bartholomew Lane, London, EC2N 2AX.

 

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