A new report claims that first time buyer house prices are likely to increase by almost 50% by the time 2020 rolls around. The failure to build new homes in Britain and the housing crisis combined have been enough to make 2020 look pretty bleak for home owners that are looking to buy their first home in 2020 according to the survey that was conducted by the National Housing Federation.
The report titled ‘Housing Britain’s Future’ suggested that the 22% increase in births that is expected to have taken place between 2020 and 2001 combined with the insufficient house building that has taken place over the same time span is going to increase the costs of first time home prices by as much as 42%.
Rents are also expected to jump up by 44%. The result of the massive house price hikes will mean that about 3.7 million young people are still going to be living at home with their parents by the time 2020 rolls around.
Ruth Davison, the National Housing Federation director, stated that they were unable to fix the housing market for the baby-boomers in the eighties simply because they did not build enough homes and as a result even those that get decent jobs are going to find that they are forced to stay at home.
Even with a reasonable salary it will not be enough to pay rent or make a mortgage deposit. Davison added that instead of learning from past mistakes the country still has not built enough homes to start to tackle the problem. The NHF report also alleges that the average 2012 house price is ten times the amount the average young person makes in wages and by 2020 the figure is going to be a whopping 16 times more.