Average house prices to top £300k in 5 years

The average price of a property in the UK is expected to exceed £300,000 within the coming five years, according to new reports from the National Housing Federation (NHF).

The body warns that average prices are currently 11 times the average wage, signalling a greater disparity between those who can and cannot afford to buy in particular areas and also impacting upon affordability.

As demand continues to grow it is thought that prices will continue to rise until the average is above £300,000, a situation that is speculated to become a reality in five years time.

In this climate the NHF is urging the government to ramp up its housebuilding efforts and make good on its commitment to build three million new homes by 2020. NHF chief executive David Orr, argues that a housing crisis looms.

"Our report shows that continuing house price rises and the resulting housing crisis are set to stay with us for a long time," he told the BBC.

The number of home repossessions in the UK has posted a strong rise in the first half of 2007 compared to the same period in 2006, up 30 per cent, according to the Council of Mortgage Lenders.

© Adfero Ltd