House Prices up 40% by 2012

House prices look as though they are likely to rise by around 40% over the coming five years.

The average home will rise from £206,594 to £300,000 by 2012. London’s home prices are estimated to rise from £318,866 to £478,300. Even the lower priced areas such as the North West prices are likely to top £200,000.

Since 1997 house prices have risen by 156% but incomes have only risen 35%.

Some areas have homes costing over twenty times income and there are only seven regions in England where homes cost less than four times income.

It is all down to supply and demand and it is now down the Government to ensure that the 210,000 new homes needed per year are built. At present only three quarters of this amount are being erected.

With prices possibly rising to this extent, more and more people will be priced out of the market and it is likely that many more will lose their homes because of repossessions.



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