House prices 'set to soar'
Published On 6 August 2007
In the future, people in the UK are going to have to take out ever larger mortgages if they hope to buy a property, new research suggests.Figures released by the National Housing Federation (NHF) suggest that house prices could increase by as much as 40 per cent in the coming years.
I the current trends continue, the NHF predicts that London house prices will top £500,000 by 2012.
Even 'cheaper' regions - like the north-west and Yorkshire - will see house prices increase above £200,000.
These increasing prices mean that first-time buyers in particular will be further stretched and have to take on larger mortgages if they hope to get onto the property ladder, the NHF warned.
The organisation's chief executive, David Orr, explained: "Our report shows that continuing house price rises and the resulting housing crisis are set to stay with us for a long time.
"A growing number of parents will find themselves subsidising their sons' and daughters' mortgages."
To improve the situation, the group said that an additional 70,000 new homes need to be built ever year.
