House prices could be seven times average incomes by 2026
Last week, the National Housing and Planning Advice Unit, was launched to try to help make homes more affordable. They predicted that unless more houses are built, prices by 2026 could be 10 times the average buyer’s salary, up from current multiples of around seven.
I said last year that by 2026 one third of the housing stock would be second homes or privately rented. (At the moment its about 8-10% depending on how you cut the figures.) I stick by that prediction.
We may be entering a new period in home ownership – one in which unless you are young or come from a family that has property or wealth (or you end up in very well paying job) it could become very hard to get on the housing ladder.
That said, research from Abbey last year showed that there are lots of people (including many families) that could buy but would rather rent as it gives them the flexibility that they need in the flexible hire and fire culture we now have.
I’m David Lawrenson from property investment consultancy Letting Focus. I’m the author of “Successful Property Letting – How to Make Money in Buy to Let” the UK’s top selling buy to let book and Amazon.co.uk’s top selling property title.
I contribute to newspapers and a host of property websites, write a property investment blog and am a media commentator on the residential property market. You can read more of my property investment insights and details of my networking, advice, telephone - consultancy and property investment seminar programme on my website www.lettingfocus.com.What’s different about us is that we are unbiased, because unlike most people in the buy to let and property advice business we are not linked to a developer, agent or finance company. We just tell you all about buy to let and property investment - the good and the bad.Copyright of this article: David Lawrenson 2007. If you wish to reproduce this piece please contact me first. Back to main site: www.lettingfocus.com
I said last year that by 2026 one third of the housing stock would be second homes or privately rented. (At the moment its about 8-10% depending on how you cut the figures.) I stick by that prediction.
We may be entering a new period in home ownership – one in which unless you are young or come from a family that has property or wealth (or you end up in very well paying job) it could become very hard to get on the housing ladder.
That said, research from Abbey last year showed that there are lots of people (including many families) that could buy but would rather rent as it gives them the flexibility that they need in the flexible hire and fire culture we now have.
I’m David Lawrenson from property investment consultancy Letting Focus. I’m the author of “Successful Property Letting – How to Make Money in Buy to Let” the UK’s top selling buy to let book and Amazon.co.uk’s top selling property title.
I contribute to newspapers and a host of property websites, write a property investment blog and am a media commentator on the residential property market. You can read more of my property investment insights and details of my networking, advice, telephone - consultancy and property investment seminar programme on my website www.lettingfocus.com.What’s different about us is that we are unbiased, because unlike most people in the buy to let and property advice business we are not linked to a developer, agent or finance company. We just tell you all about buy to let and property investment - the good and the bad.Copyright of this article: David Lawrenson 2007. If you wish to reproduce this piece please contact me first. Back to main site: www.lettingfocus.com
Labels: house price to income ratio
This entry was posted by lettingfocus, on
Wednesday, June 20, 2007.
