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Price Hike for Houses? 2006-07-18

Posted by clype in Money, Statistics.
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Average house prices in ‘England & Wales’ could rise from 195 000 GBP to nearly 290 000 GBP by 2011, research from ‘Oxford Economic Forecasting(‘OEF’) has said. Under-supply of new housing will fuel house price inflation, OEF’ added.

Getting on the housing ladder will become even harder, it said, as house prices rise from eight times average salaries to 9.2 times in 2011.

Chief Executive of ‘The National Housing Federation‘ Mr.David Orr, said there was a ‘crisis’ of affordability.

[Picture of David Orr]
‘High house prices are already having a disastrous effect on local communities. People are unable to find a home in the area they grew up,’ Mr.Orr said.

‘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,’ he added.

The National Housing Federation‘, which sponsored the ‘OEF’ report, added that about 80 000 extra new homes needed to be built each year to boost supply and avert a dramatic rise in house prices.

  • However, the ‘OEF’s’ prediction goes against many other housing market forecasts.’The Halifax’ and ‘Nationwide’ have both said that house price growth will be modest over the medium term, while research group ‘Capital Economics’ has said that it expects prices to fall later in 2006.
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