Average London FTB home to cost £344k in 2015
The average first-time buyer home in London will cost around £344,000 by 2015, according to The Housing Market Analysis report by Oxford Economics.
The report says that the increased price for first-time buyers buying a property in London, predicted at £344,000 in 2015, is up from £277,000 in 2010. Oxford Economics also think that by 2020 the average cost of a first-time buyer home in London will be just under £450,000.
Figures are based on the current subdued level of house building and the limited availability of land. This is also combined with the stronger wage growth in the southern half of England.
The study, commissioned by the National Housing Federation, also forecasts that the average house price in England will increase by 21.3% over the next five years, from £214,647 in 2011 to £260,304 in 2016.
Average rents are predicted to rise by 19.8% over the next five years, from an average of £486 in 2011 to £582 in 2016.
David Orr, chief executive of the National Housing Federation is quoted as saying: "Home ownership is increasingly becoming the preserve of the wealthy and in parts of the country like London, the very wealthy."
He called on the government to make unused public land available to housing associations. Also, for local authorities to assess the level of housing needs in their area and for housing to be treated as a top political priority.
September 2, 2011
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