FTB House Prices to rise 42% by 2020

HAMISH_MCTAVISH

The housing crisis and failure to build enough new homes in Britain will make 2020 a bleak period for new homehunters, according to the National Housing Federation.

Its report 'Housing Britain's Future' suggests that the 22 per cent jump in births between 2001 and 2011 and a decade of insufficient house building are on target to raise first time buyer house prices by 42 per cent and rents by 44 per cent, leaving 3.7 million young people living with their parents by 2020.

"We failed to fix the housing market for the Eighties baby-boomers because we simply didn’t build enough homes," said National Housing Federation director Ruth Davison. "This means that, even with decent jobs, many are now struggling to raise a mortgage deposit or pay their rent. But rather than learn from past mistakes, the country is still not building enough homes to tackle the problem."

The NHF report argues that while 2012 house prices are 10 times the average young person's wage, by 2020 this figure will be 16 times the average wage.

Recent Census figures from the Office of National Statistics reveal that 1 in 5 families in England rent from a private landlord, twice the number that rented in 2001. Meanwhile, the proportion of families who own their home has dropped by 13 per cent over the same period.

"The situation will be even worse for the Millennium children," said Ruth Davison. "Seven years from now the eldest will be young adults, looking for work, seeking independence and dreaming of living in their own homes. If we expect them to take over the reins and drive the country forward in an increasingly competitive global economy, we must provide them with the foundations for a bright, stable future.

Our Government must look far beyond future elections and deliver a long-term house building programme that will create jobs, pump money back into the economy and give hope to millions of young people. Britain must say yes to more homes now. The future of the country – and our young people – depends on it."

http://www.independent.co.uk/property/firsttime-buyer-house-prices-will-increase-by-42-by-2020-claims-new-report-8725768.html

So the mortgage rationing of the last 5 years has only made the housing shortage worse, ensuring the next boom will be even bigger than it would have been anyway.

Talk about "kicking the can"....

Graham_Devon

LOL, is there anything you won't twist?

nicko33

bound to rise with demand from millions of immigrants, but the wage rises and prosperity for all that they bring will mean the houses are affordable

Luke273

nicko33 wrote: »

bound to rise with demand from millions of immigrants, but the wage rises and prosperity for all that they bring will mean the houses are affordable

Will wages increase by 42% in the next 7 years? Judging from the last 7 years, something tells me that no, they will not. Which means housing becomes even more unaffordable for FTB.

K.Tarshes

HAMISH_MCTAVISH wrote: »

http://www.independent.co.uk/property/firsttime-buyer-house-prices-will-increase-by-42-by-2020-claims-new-report-8725768.html

So the mortgage rationing of the last 5 years has only made the housing shortage worse, ensuring the next boom will be even bigger than it would have been anyway.

Talk about "kicking the can"....

Its all a bit meaningless until we compare with how much everything else will go up by 2020.

If Mark Carney turns up the currency abuse even more, then an average loaf of bread could cost £20, by 2020. Then those numbers for housing could be true and would mean a significant crash in property values.

IronWolf

I hear forecasts are always correct.

quantic

Its a good job this is made possible by peoples wages are going up so much, meaning they can continue to afford the increased house prices... oh wait.

K.Tarshes

quantic wrote: »

Its a good job this is made possible by peoples wages are going up so much, meaning they can continue to afford the increased house prices... oh wait.

We are a long way from 100% of income going to towards housing costs. But what happens next? What about when housing keeps going up the way predicted it passes 100% of income? Average incomes £20000 but average housing costs £22000???????????

HAMISH_MCTAVISH

K.Tarshes wrote: »

We are a long way from 100% of income going to towards housing costs.

Indeed.

The percentage of income required to buy a house is at near record lows, despite typical FTB mortgages being closer to 5% than 0.5%.