That is the conclusion of a new report from property consultant Jones Lang LaSalle into the future of UK housing.
The report warns the housing industry is still facing serious headwinds, both immediate and long term with a lack of finance imposing a strait jacket.
Nevertheless prices are expected to be reinforced by a lack of supply, low interest rates and, in central London, strong demand from overseas buyers.
Jones Lang LaSalle also warns that present stamp duty rates were creating market inefficiency and stifling activity.
“We suggest that stamp duty rates are reduced across the board and that a progressive marginal rate replaces the slab structure,”recommends the report.
Neil Chegwidden, residential research director and author of the report, said: “We believe further measures and more innovative solutions are needed if serious inroads are to be made into the obvious, fundamental and medium-term problems within the housing industry.”
The report suggests that innovative ideas such as developing for sharers, targeting investors and initiatives to encourage the release of family housing could help.
The firm forecasts 0% house price growth this year but increases next year and in the medium-term as supply shortages constrain choice when demand accelerates.
Given the continued mortgage availability and deposit requirement problems facing aspirational home buyers, renting in the UK is forecast to expand further in the coming years.
But the report questions where the stock will come from, who will invest and what happens when buying becomes more viable?
Jones Lang LaSalle supports the aims of the National Planning Policy Framework as intuitively sensible and is a step in the right direction in terms of advocating brown field sustainable development.
“But we need to release some green field land, as well as other proactive initiatives, if new development is to come anywhere close to meeting expected need,” it adds.
