UK House prices 'could rise by 40 percent'


(August 07) – UK house prices will rise by 40 percent by 2012, the National Housing Federation (NHF) has advised, meaning that the average price of a home will reach £300,000 within the next five years.

Research carried out by Oxford Economics on behalf of the NHF has outlined how prices in London will reach an average of £478,300 in five years' time, up from a current figure of £318,864.

The number of people on waiting lists for social housing has grown by 57 percent in the last five years alone, the report added, with around four million Britons currently on such lists.

"Unless we do something radical about housing supply we will see more overcrowding, more grown up sons and daughters unable to move out of the parental home, more households living in unfit homes – more housing misery and ruined aspirations," commented David Orr, chief executive of the NHF.

Last week a report from the Centre for Economics and Business Research advised that the average price would reach £460,000 by 2020