British housing crisis getting worse: RICS

The Royal Institution of Chartered Surveyors (RICS) has cautioned that Britain's housing crisis is getting worse as lack of supply continues to restrict the market.

The number of homes available for purchase in the market has been declining for the last four month. It is the first time that supply of residential property has declined for four months in a row since 2000.

However, the average number of houses sold by estate agents over the last three months reached its six-month high of 23.

Simon Rubinsohn, chief economist at EICS, said that the cost of purchasing was rocketing due to lack of supply that caused 'panic buying'.

Commenting on the survey report, Rubinsohn said, "Our numbers suggest that the picture is, if anything, getting worse. Clearly, the absence of properties to buy will ultimately be a factor in influencing the ability of people to move homes."

Nearly 64 per cent of respondents said that house prices jumped, while 72 per cent said they were in a period of higher prices. Nineteen per cent of the respondents said that they were the same, and 9 per cent said that they were lower prices.

As per an estimate by the Nationwide, the average price of a residential property in Britain is currently at around £183,600; and if it continues to rise by 6 per cent per year, it will reach nearly £240,000 in the next five year.