House prices to rocket by 40 per cent, new report claims
August 6, 2007 by admin
Filed under News, News-Mortgages
A sobering new report suggests that house prices will rise at a rate of 40 per cent in five years.
According to a report entitled Home Truths, published today by the National Housing Federation (NHF), average house prices could soon top £300,000, dashing the hopes of millions of potential first-time buyers.
The current UK house price inflation rate stands at 9.9 per cent for 2007, according to latest results from Nationwide.
Home Truths, which used research conducted by Oxford Economics, provided a searing assessment of the current housing situation in the UK as “distorted” and “dysfunctional”: citing statistics showing that the average house price represented nearly 11 times average salaries.
The report suggested that the situation will worsen the most in London, with prices distorted by soaring city bonuses and an influx of the international super-rich: a full £150,000 price rise in the average home was predicted, taking the average figure to £392,900.
The (NHF) is an umbrella body, representing 1,300 housing associations in the UK.
