Research published by the National Housing Federation (NHF) predicted that the average house price in the UK would exceed £300,000 by 2012.
The NHF paper, entitled ‘Home Truths’, found only seven locations in England had property prices within reach of four times the average salary, while Kensington and Chelsea and South Buckinghamshire had prices 20 times above the average annual wage.
David Orr, chief executive of the NHF, said: “Our report shows that continuing house price rises and the resulting housing crisis are set to stay with us for a long time. Home owners may see this as good news, but it carries a sting in the tail. A growing number of parents will find themselves subsidising their sons’ and daughters’ mortgages. Across the UK, more people are going to find themselves priced out of the market and struggling to find a decent home.”
The NHF believed that supply had fallen further behind demand, and implored the government to follow through with its promise for three million new homes by 2020.
It also insisted social housing had a large part to play in helping low-income families and key workers.
Robert Bryant-Pearson, chief executive of Allied Surveyors, said: “I agree that housing misery will get worse and that house price inflation will fall over the next two years, to a level slightly above the Consumer Price and Retail Price indices. But, I do not share the ‘bounce back’ philosophy that prices will then go back to double digit inflation from 2009.”
