21 July 2006
Home ownership is being pushed beyond the reach of middle earners, social landlords warned this week.
According to a study carried out for the National Housing Federation, the average house price in England will rise by about 50% from just under £195,000 at the start of this year to £286,000 in 2011.
NHF chief executive David Orr said the report, England's housing timebomb, based on figures from Oxford Economic Forecasting, showed that housing associations should be building or refurbishing 80,000 affordable homes per year instead of 40,000.
'High house prices are already having a disastrous effect on local communities,' said Orr. 'People are unable to find a home in the area where they live and low-income families are forced to live in poor-quality, cramped conditions.'
The report, published on July 17, forecasts that the average house price will be equivalent to 9.2 times the average salary in 2011, compared with eight times today.
Last year, 30% of homes were purchased by first-time buyers compared with 50% in 1995.
PFjul2006
