Average house prices in England are due to rise to almost £300,000 over the next five years, a report from the National Housing Federation (NHF) has predicted.
The England’s Housing Timebomb: Affordability and supply 2006-2011 report will make grim reading for those hoping to get on to the housing ladder in the next five years.
The NHF said that around 80,000 new homes will be needed every year to keep up with demand.
“Crisis is an over-used word but I make no apology for using it: we are already in crisis and this report shows that things are set to get worse,” said David Orr, head of the NHF.
“Over the next five years we’ll see home ownership being pushed further out of the reach of middle earners and even those on relatively high incomes.
“It’s vital that the government makes affordable housing a priority in next year’s Comprehensive Spending Review, and brings in planning reform to speed up the delivery of affordable homes in mixed communities,” he added.
The report follows new figures revealing that house prices gained more last month than during any four weeks on record, up 4.7 per cent in London and the south-east.The housing and mortgage markets have recovered from their torpor of 2005, with many homeowners deciding to compare mortgage rate deals to take advantage of the best rates.
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Only three months to go until we can judge how accurate the prediction was.
Is NHF’s David Orr going to comment when five years is up?