House Prices to Rise by 50% in 6 Years
Average house price to reach £300k
18th July 2006
The National Housing Federation (NHF) has forecast that the price of the average house will continue to rise for at least the next six years, with property prices predicted to go up by 50% over that period.
The continued growth will see the average house price rise from today's figure of £195,000 to a staggering £300,000 by 2012, representing a multiple of 9 and a half times the average salary.
While the report's findings might be good news for existing property owners, the NHF says that it 'spells disaster' for future first time buyers, and could have far reaching effects such as a reduction in the birth rate as homebuyers struggle to keep their heads above water.
The report was based on analysis conducted by independent group Oxford Economic Forecasting, and is being used by the government as part of long term housing policy planning.
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