UK housing emitting 'ominous' signals amid market imbalances

London

BRITAIN'S housing shortage and continued growth in prices mean the property market is showing increasing signs of dysfunction, according to a report from the Royal Institution of Chartered Surveyors (RICS).

While the general election had an impact on activity in May, damping buyer demand and new sellers coming to the market, RICS used its latest monthly report to highlight broader and more damaging risks. That includes the dearth of homes for sale, which has pushed up values in recent years, cutting off many potential first-time buyers. RICS chief economist Simon Rubinsohn said the report shows the issue of affordability may even worsen.