MORE HOMES MUST BE BUILT TO AVERT MORTGAGE DEBT CRISIS » Communities » 24dash.com

Responding to reports today that some mortgage lenders will now offer mortgages at 5 times people's salaries, David Orr, chief executive, National Housing Federation, said: "News this morning that mortgage companies are now offering mortgages at 5 times salaries reveals how serious England's housing timebomb has become.

"Research from Oxford Economic Forecasting in July showed that the situation is likely to get a lot worse for first time buyers: the average house price in England is projected to rise by around 50% over the next five years.

"The only solution is to build more affordable homes. The National Housing Federation estimates that England now needs around 80,000 affordable new homes every year to tackle our housing crisis."

Ends

Press release issued: November 1 2006