22.07.13
NHF calls for house-building to keep up with population
House prices could increase by 42% by 2020, with rents rising even higher, the National Housing Federation (NHF) has warned in a new report.
If the rate of house-building continues to fail to keep up with the rising population, up to 3.7 million young people could be forced to live with their parents. Private rents in England are predicted to increase by 6% a year between 2015 and 2020, and are expected to be 46% higher than today’s prices by 2020.
The report reads: “By 2020 the price of a first-time buyer's home will increase by 42% to £245,165. Although wages for 22- to 29-year-olds will increase by 36% by 2020, this poses a huge challenge for those wishing to be homeowners. Low-earning young people would have to spend 16 times their average wage just to buy a home.”
NHF director Ruth Davison said: “We failed to fix the housing market for the Eighties baby-boomers because we simply didn’t build enough homes. 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 situation will be even worse for the Millennium children. 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.”
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