Property demand is not slowing down

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A SOUTH coast property firm expects the housing market to keep booming as it faces increasing demand.

However, fears have been raised that ever more would-be homebuyers are being priced out of the market.

Persimmon Homes South Coast has released its third quarter trading update citing an upswing.

Managing director Matt Paine said: ‘The third quarter of 2015 has been an extremely busy time for the team.

‘Our private sales rate is 12 per cent ahead of last year and interest in our developments across the region is extremely encouraging.’

Mr Paine said property was selling well in Portsmouth and Horndean as well as other parts of the south coast.

He said: ‘Growth inevitably leads to further employment and so far in 2015 we have seen an increase in our team with new people joining our sales, land and planning and construction teams.’

But services firm PwC has released a report claiming only 26 per cent of young adults will be on the housing ladder by 2025.

The report says Britain is facing a new ‘generation rent’ in which almost 60 per cent of 20 to 39-year-olds in England will rent their homes by 2025.

Senior economist Richard Snook said: ‘Demand for housing in the UK has outstripped supply for more than two decades.

‘Changing the outlook for generation rent will require us to build more houses than needed just to match population growth in order to make up the past shortfall between housing supply and growth in demand.’

Britain’s average house price has reached a new record high of £286,000.

The average price has jumped by 6.1 per cent over the past year.

A first-time buyer faces paying 4.3 per cent more for a starter home than they did a year ago, with the average price paid for a first-time buyer home standing at £216,000 in September.