IPM Property News
House Prices 'Set For Another Huge Leap'
Source: SkyNews
The cost of an average home in England is set to soar by 40% over the next five years, it has been claimed. The National Housing Federation says the price of the average property will increase to £302,400 by 2012.
Meanwhile, a home in London will cost nearly £500,000, it has forecast. The price of the average home in England is now £206,594 - nearly 11 times average earnings.
But despite its predictions, the NHF maintains a house price crash is unlikely. This is despite first-time buyers finding it increasingly difficult to get on the property ladder. The NHF says house prices have risen by 156% since labour came to power in 1997. During the same period average incomes have gone up by just 35%.
Social housing waiting lists have grown by 57% during the past five years to 1.6 million households. The NHF says its study reinforced the need for ministers to act on their recent pledge to build an additional three million homes by 2020. Federation Chief Executive David Orr said: "Our report shows a growing number of parents will find themselves subsidising their sons' and daughters' mortgages.
"Across the country, more and more people are going to find themselves priced out of the property market."
The research was conducted by Oxford Economics.
