Homebuyers could face average house prices 10 times their salaries unless more homes are built, a survey revealed today.
And research from the newly established National Housing and Planning Advice Unit found more than a third of non-home owners think they will never be able to buy.
Their warning comes as house prices continue to outstrip salary increases.
Government figures show that in 2000 the average cost of a house was four times annual earnings, but by 2006 the typical homebuyer was looking at seven times their salary.
The Unit predicts that this is set to rise again unless supply increases.
By 2026 it estimates that house-hunters will be faced with average prices 10 times their yearly earnings.
It's chairman, Professor Stephen NIckell, said; "demand for housing is growing and unless action is taken, pressure on the market will only get worse."
Their survey found that eight out of 10 people said the government should take action to make housing more affordable.
Housing and Planning Minister Yvette Cooper said: "This powerful analysis shows how vital is is to to build more homes.
"Sticking to Regional Assemblies' current proposals for 190,000 hoimes a year simply won't do enough to help the next generation of first-time buyers."
Source - Manchester Evening News - 7/6/07
Another reason to build more houses now is the population growth.
In 2026, if house prices are 10 times peoples salary then wouldn't the salary have also increased because of inflation?
Posted by: Homes in Manchester | July 25, 2007 at 11:02