FTBs Faced With Rising House Prices

17-Jul-2006

First-time buyers (FTBs) will find it harder to step onto the first rung of the property ladder in 2011, according to a new report.

The National Housing Federation (NHF) warns that the average house price in England could near the £300,000 mark in five years' time.

Research carried out by Oxford Economic Forecasting predicts a leap of 50 per cent from an average property price of about £195,000 at the start of this year to £286,500 in 2011.

The NHF says that at this rate, house price inflation will outstrip growth in earnings and disposable income, spelling bad news for FTBs.

The organisation is urging the government to do more to help buyers by providing more affordable homes.

"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," comments David Orr, chief executive of the NHF.

"It's vital that the government makes affordable housing a priority in next year's Comprehensive Spending Review and brings in planning reform to speed up the delivery of affordable homes in mixed communities," he adds.

These figures come on the back of a report from Rightmove suggesting that asking prices are already increasing by record amounts this year.

It says that prices have risen by £1,500 a week over the last month to become 10.6 per cent higher than they were at the same time last year.

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