House prices and the rental population set to increase by 2025

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.