Tuesday 30th October 2007
A study conducted by the National Housing and Planning Advice Unit (NHPAU) reveals that property across the south of the country could be more expensive than that in London by 2026.
The government thinktank claims that house prices are likely to exceed those in London in a number of locations when measured in terms of income multiples.
London prices are predicted to be about 11 times the average earnings in London by 2026.
But the NHPAU anticipates prices of 12.4 times the average income in the south-east and up to 12.9 times in the south-west.
The findings are to be taken into account as the unit formulates its first official advice, due to be delivered to central government in spring 2008.
Professor Stephen Nickell, chair of the NHPAU, comments: "England is an aspirational, prosperous and growing nation and that means a demand for more housing.
"If we fail to act then a generation of buyers will be unable to get a foothold on the housing ladder, not just in London but across large swathes of England."
He adds that this could extend beyond first-time buyers to prevent homeowners from moving to larger properties.
Mr Nickell concludes that any indication of greater affordability due to a cooling in the housing market should be seen as a short-term effect and that more houses must be built to cater for growing demand.
His comments come as the Land Registry reveals a "noticeable dip" in the annual rate of house price growth from 9.3 per cent to 8.7 per cent in the year to October 2007.
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