First-time Buyers
Average house prices in England to rise to £302,400
The average price of a house in England will rise to more than
The report projects a 40% increase in the average price of a house in England, from £206,594 in 2006 to £302,400 by 2012.
National Housing Federation chief executive David Orr said: “The problem is one of demand outstripping supply, with the rate of household formation exceeding the rate of new house construction.
“Although there may be a slight slowdown in the market over the next couple of years, there is still enough underlying demand to make a market crash unlikely.”
With the price of the average UK house now nearly 11 times average earnings, the report argues that first-time buyers will find it even more difficult to get a foot on the property ladder.
The Housing Federation warns of ‘major social ills’, unless the government undertakes ‘considerable, sustained investment’ to increase the UK housing supply.
It claims that government plans to build three million homes by 2020 are not sufficient to meet the projected increase in the number of UK households by 3.9 million by 2029.