The National Housing Federation predicted in a study yesterday that a chronic shortage of supply in new houses will plunge house ownership to its lowest levels since the 1980’s in the next 10 years. Simultaneously the study predicts house prices to be pushed 21.3% higher over the next 5 years as a result.
The NHF conclude that the lack of property will push private rental prices higher, cause huge waiting lists for social housing and create another property boom.
The statistics used are based on a national average property price, currently £214,647, and would see it pushed up to £260,404 in 2016. London and the South-East are expected to see larger relative gains.
Although it’s good news for house-owners, it pushes property ownership further out of reach for first-time buyers, ordinarily the life-blood of the market. Furthermore rents are expected to rise by a further 19.8%.
Hugh Wade-Jones of Enness Private Clients says; ‘Such a situation can create good opportunities for existing home-owners and in certain areas it may prove prudent to retain an existing property, rather than trying to sell and move. If the above figures come to fruition then it would certainly see property investors beating most other asset classes over the next 5 years.’
If you are currently looking at moving, and would like to look at retaining your existing property then please call your adviser directly or the office on 020 7940 4747 to discuss your options further.