UK house prices are going to rise by another 40% by 2012. The value of a home in
England is likely to hit £302,400 in 2012, the National
Housing Federation forecasts.
The Federation's projections highlight that it is not going to be any easier to buy a house in England.
A growing number of people are likely to find their only hope of getting a suitable, affordable home is through a housing association.
High
interest rates are going to see house price growth slow down to 2% per year over the next two years. However, from 2009 onwards house prices are set to increase by 10% per year when lower
mortgage rates and lack of housing shortages are likely to trigger a new boom.
Home owners may view this as good news, however, most will benefit only if they can sell up and move to a smaller property. Soaring house prices are likely to have a disastrous impact on this country.
Families are being squeezed into poor housing, with employers trying to recruit staff who are not able to afford housing costs. Communities are being torn apart with people moving away to find cheaper
homes .
Average house prices in England are11 times 2006 average earnings, after rising 135% since 1997. Over the same period wages have risen only 35%.
In
Kensington &Chelsea and south Buckinghamshire house prices have surpassed local incomes 20 times, with just seven places across England having homes available under four times average earnings, Barrow, Burnley, Hartlepool, Kingston Upon Hull, Pendle, Stoke on Trent and Wansbeck.
