According to recent research conducted on behalf of the National Association of Estate Agents (NAEA), house prices are set to increase by 50% in the next decade. However, a report written by the Centre of Economics and Business Research, warns that home ownership amongst the working population, will decrease from 62% to 55%.
NAEA Managing Director Mark Hayward sums up it up when he says “Ongoing house price inflation, combined with low wage inflation, tighter lending restrictions and a shortage of affordable housing, means owning a home will continue to be a distant dream for many. Increased rental costs will also make it more difficult for current renters to save for a house deposit as much of their income will be eaten up in rent”.
The association has mooted a number of possible solutions, such as incentivising the construction industry to offer more apprenticeships and training programmes and exempting pensioners wishing to downsize from paying stamp duty.