First time buyers to remain priced out of market

06-Aug-2007

The National Housing Federation (NHF) has warned that first time buyers will continue to be priced out of the market over the next few years as prices continue to rise.

The average house price will rise by 40 per cent over the next five years to the point where the typical price stands at £300,000 come 2012, the federation has said.

However, the figures provided by Oxford Economics suggested that a complete market crash was unlikely, though inflation will slow to around two per cent next year before rising again in 2009.

"A growing number of parents will find themselves subsidising their sons' and daughters' mortgages," commented NHF chief executive David Orr.

"And, across the country, more and more people are going to find themselves priced out of the property market - and struggling to find a decent home," Mr Orr added.

Last week a separate research unit suggested that prices would rise past the £450,000 mark come 2020.

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