2 Nov

Rics rubbishes prospects of housing crash

Rics rubbishes prospects of housing crash

A leading property market expert has rebuffed claims that the UK could see a housing crash similar to that being suffered by the US.

David Stubbs, senior economist at The Royal Institution of Chartered Surveyors (Rics), said that fundamental differences in the two markets would mitigate the chance of a US-style housing crash.

In particular, Mr Stubbs noted that the disparity in housing supply would prove a key factor.

He told BBC Radio Four: "There are obviously several significant differences between the US and the UK. One of the most important we think is looking at what happened in the supply side.

"In America, in response to higher house prices, the house builders really ramped up production, increased the amount of new homes coming on the market massively."

He added: "In this country we saw nothing of the same kind of reaction over ten years of house price increases, and indeed now everyone accepts that we need to vastly increase levels of house building."

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