House price increase warning
Average property prices in the south east are set to rise to £322,000 by 2011 according to Oxford Economic Forecasting, an increase of 40 per cent.
Derek Cash, head of south region at the National Housing Federation, said: “Our projections may seem like good news for current homeowners in the region, but they actually spell disaster and not just for tomorrow’s first time buyers.
“People will be unable to find a home in the area where they grew up and key public sector workers will have to move to cheaper parts of the country to ease their housing problems, making essential public services in the region more vulnerable.”
He added that soaring prices will have “devastating consequences” for communities, both rich and poor.
The main cause of the housing problem, particularly in the south east, is said to be the constrained supply of homes.
With many people finding it difficult just at the present time to get onto the housing ladder, those owing money may have an incentive to take on advice on becoming debt free to create funds to get a home now.
