BBC News reports say the National Association of Estate Agents (NAEA) and the Association of Rental Letting Agents have warned that price of the average UK home will rise by 50{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} in the next 10 years,
They forecast average prices will rise from £280,000 to £419,000 by 2025. In London, prices are forecast to nearly double to £931,000.
The average cost of renting a home in the UK is forecast to rise too, though by only 27{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34}, taking the average rent from £134 a week to £171. So the report forecasts that the proportion of households living in private rented accommodation will rise, from 20{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} now to almost 29{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} in 10 years’ time.
Mark Hayward of the NAEA is quoted as saying: “House prices are only going to go one way, and unfortunately that is up…….. For so many already priced out of the market, this is news aspiring house buyers will not want to hear.”
“Ongoing house price inflation, combined with low wage inflation, tighter lending restrictions and a shortage of affordable housing, means owning a home will continue to be distant dream for many”
In view of the above, financial pressures on individuals with debt / solvency issues are only likely to increase.
Full report at:
http://www.bbc.co.uk/news/business