Will local authorities allow more new developments?

As we have covered in a number of articles of late, there is still a crisis in the UK property sector with the number of homes being built on an annual basis still not covering the increase in the UK population and the number of households. As a consequence, many people are now suggesting that local authorities need to incentivise local residents and those involved in the "property approval chain" by take a leading role and highlight the positives for increased property development in the UK.

Until the UK authorities address the problem of under development in the UK property sector, something which has been with us for decades, we will almost certainly at some stage see a return to the boom and bust of property cycles gone by. Unless the number of houses in the UK is increased dramatically over the next few years we will see further pressure on the rental market which would push UK property prices higher and also UK rental charges.

While this situation would obviously benefit those who own property at the moment, as well as buy to let landlords, it would further alienate potential first-time buyers in the UK. At some stage first-time buyers will see the property ladder moving away from them with many forced into renting which will further push prices higher. Something of a self fulfilling prophecy!