Category: 
August 16 2007House price increase
ok so i usually take newspaper headlines with a pinch of salt. however most of them were reporting that that UK house prices are set to rise 40% over the next 5 years. this is not a figure plucked out of thin air either. figures have been taken from a report from the National Housing Federation. the report features new projections commissioned from Oxford Economics which also show that the average price in London will nearly hit half a million pounds in time for the 2012 London Olympics.
Home Truths
the report is titled Home Truths reveals that a housing market crash is ‘unlikely’ and that home ownership will move even further out of the reach of many first time buyers as the average house price is now nearly 11 times average earning.
housing supply has dropped even further behind housing demand with over 1.6m households (equating to almost 4m people) are on waiting lists for a social home
Federation Chief Executive David Orr said:
“Our report shows that continuing house price rises and the resulting housing crisis are set to stay with us for a long time.
“Each year that we fail to build enough homes to meet newly arising housing need we increase the shortfall, making it harder to catch up.”
“For those key workers and low-income families looking for a decent home, it is critical that ministers invest sufficiently in social housing. This will enable housing associations, and others, to build the desperately needed 70,000 new social homes a year.â€
National Housing Federation - who??
i had never actually herd of the national housing federation before this report came out. who are they?
The National Housing Federation represents 1300 independent, not-for-profit housing associations in England and is the voice of affordable housing. Our members provide two million affordable homes for five million people.
i like the idea of a non profit organisation and i think that social housing is very important.
their report can be found here: Home truths report
There are 3 comments
“average price in London will nearly hit half a million pounds in time for the 2012″ - I wonder if i should start saving up for this! However, income will also rise with this, it won’t exceed it but it will at least rise!
the rate that property increases in value seems to go up faster then anyone i know can save money. i would advise anyone to get the lowest rate 100% mortgage on a property they can afford now. then when your income has gone up and the property value has also risen you can remortgage to a better lender with lower rates.
DO NOT remortgage to borrow more though!
Wow, is doesnt seem all that long ago - but just look how things have changed. In less than 6 months the housing market has turned on its head. I find it hard to believe the prices will be so high at 2012 - but at least one will assume they are higher than they are today, and back on the way up.