It is safe to say that the Conservative Party’s landslide victory in the December general election represented a doomsday scenario for Remainers. For the first time, there is little to no doubt whatsoever that the United Kingdom will indeed leave the European Union at the end of January.

But far from dealing a hammer blow to the UK economy, the result of the general election has benefited some of the country’s most important markets. One of which is the housing sector, which, according to the Royal Institution of Chartered Surveyors (RICS), has experienced an “uplift” since the Conservatives gained a significant majority in the House of Commons.

An unexpected uptick

According to the RICS, sales expectations in London and the south-east of England have risen significantly for the first time in several months. Likewise, interest among new buyers is also on the increase across much of the UK, particularly in the North East of England and Wales.

The same, however, could not be said for Scotland and Northern Ireland, where sales continue to deteriorate on a monthly basis.

The latest figures released by the RICS should give some comfort to those looking to sell up or relocate over the coming months. Following years of relentless uncertainty, the housing market may once again be showing signs of life for the immediate future, at least.

“The signals from the latest RICS survey provide further evidence that the housing market is seeing some benefit from the greater clarity provided by the decisive election outcome,” said Simon Rubinsohn, RICS chief economist.

“Whether the improvement in sentiment can be sustained remains to be seen given that there is so much work to be done over the course of this year in determining the nature of the eventual Brexit deal.”

“However, the sales expectations indicators clearly point to the prospect of a more upbeat trend in transactions emerging, with potential purchasers being more comfortable following through on initial inquiries.”

House price increases are predicted

Elevated buyer interest is being motivated in many regions by significant falls in average house prices. Particularly in London, East Anglia, and the South East of England, home prices have experienced declines over recent months.

RCIS members, however, are now predicting widespread house price increases throughout the rest of 2020. Though once again, the market remains at the mercy of the outcome of Britain’s departure from the European Union at the end of January.

As it is not yet clear whether the Conservative Party will be able to negotiate an acceptable deal with the EU, uncertainty remains as to the future of the UK housing market and its long-term buoyancy.

Students across England are feeling neglected, let down, and angry. Having expected to move into comfortable and functional accommodation in time for the new term, hundreds are being told their student residences are not ready to be occupied.

The result of this is a growing number of students finding themselves stuck in hotels and other forms of temporary accommodation, away from the general student population. Often with no access to basic facilities, those affected are being forced to live on takeaways and use paid laundry services simply to keep their clothes clean.

According to student housing charity Unipod, at least 22 private student residences up and down the United Kingdom are facing severe delays. This equates to around a third of all the new blocks that were supposed to be ready in time for the new term.

Along with the expense, discomfort, and isolation being experienced by those affected, the National Union of Students has expressed concern about how the disruption may affect the quality of their educational experience.

The problem is particularly prolific in Portsmouth, where educators are calling for greater scrutiny over private student accommodation providers. The University of Portsmouth vice-chancellor, Graham Galbraith, stated that as the disputed developments are private, the university has no direct control over them.

“At the end of the day, those housing providers know that the universities will step in. So where does the responsibility for this lie? Because they seem to be able to walk away,” he said.

Mr Galbraith’s comments echo the sentiments of educators across the UK, who cannot understand the total lack of accountability for private student accommodation developers and building owners. He believes that as this entire arm of the industry is funded almost exclusively by maintenance loans, i.e., public money, it should be subject to the same scrutiny as any other form of public spending or investment.

He warned that, as things stand, there is no direct control whatsoever and that new student housing blocks can be built and opened with no interaction or dialogue with the university whatsoever. This is despite the fact that billions of pounds of taxpayers’ money fund these developments in the form of student maintenance loans.

A nationwide issue

Students in Portsmouth are far from alone in their plight, as the issue is spreading across the United Kingdom. In Bristol, for example, student housing delays have become so severe that some students are being temporarily housed in Wales.

According to Universities UK, the issue lies in the fact that its code of conduct is only applicable where university-owned accommodation is concerned. There is currently no specific code of conduct and no regulatory standards for private student developments, which are outside the control of the public sector.

It is therefore unclear who will make the first move or when, though educators agree that certain safeguards should be put in place for students.

Adding insult to injury, some students have been offered a mere £150 in compensation, which for many is far less than they are paying for a one-week stay at their temporary residence.

One of the private housing companies behind an unfinished development in Portsmouth has apologised unreservedly for the inconvenience, though it points the finger of blame squarely at its building contractor.

A spokesman for the housing company expressed its disappointment “to hear that the university does not consider that we have communicated effectively with them.”

“We believe that we have done everything possible to mitigate the impact for those affected in the time available.”

“We will continue to do all we can to get students into the building as an urgent priority.”

There’s a growing housing issue in several major UK cities, which, contrary to the usual trend, concerns supply outstripping demand. Regions with sizeable student populations are typically goldmines. For around 75% of the year, tens of thousands of properties are needed to accommodate learners. All of which adds up to a guaranteed income for building owners and landlords in normal circumstances.

Unfortunately, things appear to have taken a turn for the worse in Plymouth. This autumn, it’s estimated that up to 2,000 student bedrooms across the city could be vacant. all at a time when demand for quality student properties should be outstripping supply by a significant margin.

According to a local student letting expert, far too many flats have been built across the city at a time when student numbers are actually in a state of decline. The result of this is a crisis in the making, wherein any number of major developments risk standing vacant during peak student season.

This is a particularly severe issue for the city of Plymouth, which relies heavily on a sizeable year-round economic contribution from its student population.

 “I’m seriously concerned,” said Henry Hutchins, chief executive of Clever Student Lets.

 “I can see between 1,500 and 2,000 empty units in Plymouth.”

He also reported dealing with at least one landlord who now faces going out of business, which has been unheard of for student property owners over recent years.

The speed at which new student properties have been built across Plymouth has resulted in far more vacant inventory than the city needs. Over the past year alone, an additional 5,243 student bed spaces have appeared across Plymouth. many of which accommodate imposing skyscrapers and former commercial properties.

Far from accommodating a swelling student population, all this is happening at a time when student numbers in Plymouth are on the decline. According to official figures from the University of Plymouth, the city’s approximate student population has plummeted from 32,000 in 2010/11 to 21,000 in 2017/18.

Experts have also commented on the declining numbers of international students choosing to study in Plymouth.

Mr. Hutchins highlighted the economic impact of approximately 11,000 fewer students living and studying in the city.

 “Students are spending £300 million a year in Plymouth, so if you take out 30 per cent fewer students, that’s about £90 million less being spent in the city centre,” he said.

 “I’m worried about that spend and the effect it will have on retail and employment.”

 “The whole market is under pressure. I’ve been stating this for two years and no one has taken notice, and now it is going to have a real effect in Plymouth.”

He and other experts are predicting a slow but gradual increase in student numbers over the years to come, but they can also see a number of student flats and buildings being repurposed into conventional flats.

 “They might have to re-jig the market,” he said.

It’s therefore possible that the issue could play directly into the hands of the savvy buy-to-let investor. On one hand, it’s often true to say that purpose-built student flats aren’t of the same quality standard as more conventional city-centre flats. They also tend to be smaller and of a somewhat non-standard configuration. all of which could add up to significant redevelopment costs for investors.

At the same time, however, desperation and urgency on the part of vacant property owners could lead to significant price reductions. The money saved on the initial purpose of the property could therefore be used for renovations and/or repurposing before being let out at a profit.

There’s also talk of some vacant student inventory being acquired by social housing groups, though none have commented on the issue so far.

The housing crisis in the United Kingdom means different things to different people. For some, skyrocketing property prices are playing directly into their hands and, indeed, their pockets. For others, it’s a case of accepting the stark reality that homeownership is unlikely at best.

Research suggests that approximately 90% of young people in Britain intend to own their own home at some point. Unfortunately, research from Santander suggests that only one in four young Britons (26%) will be on the property ladder by 2026.

This contrasts starkly with figures from 2006, at which time approximately half of young Britons (under the age of 34) owned their own home.

Of course, none of this will come as a real surprise to younger generations in the United Kingdom. The combination of astronomic property prices and stagnant wages has made the dream of homeownership an unlikely reality for most. Precisely why more than 70% of millennials believe that their chances of owning their own home are slim to none.

An escalating issue

With the state of the UK housing market as it is, fewer would-be first-time buyers than ever before are making concerted efforts to get on the property ladder. Research suggests that only 42% have anything put away to cover the deposit on a prospective property. Interestingly, of those who had earmarked savings for a deposit, men were found to have saved twice as much as women.

While the men polled who had deposit savings put away had an average of £11,600, the women polled had saved an average of £5,620. Across both gender groups, the average target amount for those saving towards a property purchase was £24,000.

Had they managed to hit this target, which the vast majority didn’t, they would still have fallen short of the required funds to buy a home. Today, taking out a mortgage on an average property in the United Kingdom means coming up with a deposit of £44,000. For most everyday earners, this is simply out of the question.

In 1996, approximately 65% of people on low to medium incomes (between £20,000 and £30,000) owned a home. By 2016, this had fallen to just 27%.

Today, it’s estimated that around 65% of homebuyers have incomes of more than £40,000—significantly higher than the national average. Salaries have been rising on average by a mere 18% over the past decade, failing to maintain pace with average house prices, which are all around 47% for the same period.

Speaking on behalf of Santander Mortgages, managing director Miguel Sard acknowledged the difficulty facing an entire generation of first-time buyers.

 “It’s clear that while the aspiration to own a home is just as strong as in previous generations, it’s a dream that is looking increasingly out of reach,” he said.

 “Without change, homeownership in the UK is at risk of becoming the preserve of only the wealthiest young buyers over the next decade. This report should be a wake-up call for industry and the government to think more creatively to keep the homeownership dream alive for the next generation of first-time buyers.”

With conventional purchase channels all but closed, more first-time buyers than ever before are turning to friends and family for help. In fact, the study from Santander suggests that almost 40% of all first-time buyers now rely on support from parents and grandparents to purchase their homes.

In the meantime, the number of British people taking on second homes as buy-to-let properties is reaching an all-time high, having doubled since 2001. As wealthier Brits continue to capitalise on sky-high property prices and accelerating rental yields, an entire generation risks being priced out of the market. All attempts by the government to address the issue (Help to Buy, lifetime ISAs, etc.) have so far been criticised as inadequate or simply not fit for purpose. Unless more drastic action is taken, the issue is only predicted to continue worsening over the years and decades to come.