UK house prices will average £300,000 by 2012 according to National Housing Federation
The average price of a house will hit £300,000 within five years, according to a new report.
The National Housing Federation’s report said a housing crash was unlikely, in spite of a reported slowdown in the market and rising interest rates.
The report, entitled Home Truths: The case for 70,000 new social homes a year suggests house prices will rise by 40% across England by 2012. It calculates the average house price will hit £302,400, driven by the London average reaching £478,300. It warns the government is building around 55,000 fewer homes a year than are required for the burgeoning population.
The NHF calls for Gordon Brown to guarantee a social housing programme averaging 70,000 new homes a year from next year until 2011.
NHF chief executive David Orr said: “At root the problem is a lack of supply. We do not have enough homes in the market to be able to accommodate everyone who needs a home. And therefore the price continues to go up. We will not be able to house our children - that is the consequence."